The Motilal Oswal Nifty India Defence ETF is an Exchange Traded Fund (ETF) that focuses on providing exposure to India’s rapidly growing defense sector. Here’s a detailed overview:
Motilal Oswal Nifty India Defence ETF Share Price
As of December 17, 2024, the Motilal Oswal Nifty India Defence ETF is trading at ₹76.88 per unit.
This ETF aims to replicate the performance of the Nifty India Defence Total Return Index, providing investors with exposure to India’s defense sector. It has an expense ratio of 0.40%, which is below the category average of 1.47%, making it a cost-effective option for thematic investment.
The fund’s assets under management (AUM) stand at approximately ₹94.73 crore as of September 30, 2024. The ETF is classified under the ‘Very High’ risk category, suitable for investors with a high-risk tolerance seeking exposure to the defense sector.
For the most current share price and performance details, you can refer to the National Stock Exchange of India (NSE) website.
Please note that ETF prices are subject to market fluctuations. It’s advisable to consult with a financial advisor or use real-time trading platforms for the latest information before making investment decisions.
Key Details
- Fund Objective: The ETF aims to replicate the performance of the Nifty India Defence Index, which includes companies involved in the manufacturing, development, and operations of defense and aerospace products and services.
- Underlying Index: Nifty India Defence Index.
- Category: Thematic Sectoral – Defense.
- Launch Date: Recently launched (specific dates may vary; check fund updates for accuracy).
- Expense Ratio: Typically low (ETFs generally charge between 0.1% to 1%).
- Fund Manager: Managed by experts at Motilal Oswal Asset Management Company.
Top Holdings (as part of the Nifty India Defence Index)
The index primarily consists of Indian companies in the defense sector. Major players may include:
- Hindustan Aeronautics Limited (HAL)
- Bharat Electronics Limited (BEL)
- Mazagon Dock Shipbuilders Limited
- Bharat Dynamics Limited (BDL)
- Other defense-focused firms contributing to India’s self-reliance (Aatmanirbhar Bharat) initiatives in defense.
Motilal Oswal Nifty Performance (As of December 2024)
- 1-Month Return: 16.17% (indicative of the sector’s bullish trend).
- Sector Outlook: The defense sector has strong growth potential, fueled by government initiatives, increasing defense budgets, and an emphasis on indigenization.
Risks to Consider
- Sector-Specific Risk: Being a thematic fund, it is highly concentrated in one sector, making it susceptible to downturns in the defense industry.
- Market Volatility: Performance can be affected by changes in government policies, geopolitical tensions, and market dynamics.
How to Invest
(1) Stock Exchange: The ETF can be bought and sold on the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE) through a demat account.
(2) Minimum Investment: The minimum investment is typically one unit (the price of one ETF share).
(3) Brokerage Account: Requires a trading account with any SEBI-registered broker.
Recent Performance
- Net Asset Value (NAV): As of December 16, 2024, the NAV is ₹76.87, reflecting a 1.36% increase from the previous day.
- Expense Ratio: The fund has an expense ratio of 0.40%, which is below the category average of 1.47%, making it a cost-effective option for investors seeking exposure to the defense sector.
Fund Highlights
| Metric | Details |
| Current NAV | ₹76.88 |
| Expense Ratio | 0.40% (lower than category average) |
| AUM | ₹94.73 crore (as of Sep 30, 2024) |
| Dividend Policy | Growth-oriented with no regular payouts. |
| Risk Category | Very High |
Investment Example
Imagine you invest ₹1,00,000 today at the current ETF price of ₹76.88. If the defense sector grows at a CAGR of 10% over five years, your investment could potentially grow to approximately ₹1,61,000, excluding fees and other charges.
Unparalleled Growth Drivers
This ETF stands out because it focuses on a sector that is buoyed by robust macroeconomic and policy drivers:
- Export Opportunities: Indian defense exports crossed ₹16,000 crore in FY 2024, with a goal to reach ₹35,000 crore by 2025.
- FDI Inflows: The government has allowed 74% FDI under the automatic route in defense manufacturing, attracting global giants to partner with Indian companies.
- R&D Push: Companies in this ETF, such as HAL and BEL, are spearheading innovation in drones, AI-driven systems, and advanced radar technologies.
Investment Case Study
Let’s compare this ETF to a hypothetical investment in a broader market index:
| Metric | Defense ETF | Broader Nifty 50 Index |
| 1-Year Return | 25% (sector growth) | 12% (diversified) |
| Volatility | High (sector-specific) | Moderate (diversified) |
| Expense Ratio | 0.40% (low) | 0.10%–0.20% (ultra-low) |
| Thematic Precision | High (defense only) | Broad (all sectors) |
This ETF significantly outperforms in a bullish defense market, though its thematic nature makes it riskier than a general index fund.
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