Minimum Investment ₹500: Motilal Oswal BSE Clean Environment Index Fund

Minimum Investment ₹500: Motilal Oswal BSE Clean Environment Index Fund 

Sivakasi Manikandan, MD – AISMONEY,  ARN-33652

For investors who wish to participate in India’s clean and sustainable growth story, Motilal Oswal Mutual Fund has launched a new index fund called the Motilal Oswal BSE Clean Environment Index Fund.

 

1. Objective of the Fund

·         The primary objective of this fund is to invest in sectors that support environmental protection and sustainable development.

·         It aims to provide long-term capital appreciation opportunities for investors.

 

2. Which Index Does It Track?

·         The fund tracks the BSE Clean Environment Index.

·         The index comprises companies that represent India's transition towards a cleaner and more sustainable economy.

 

3. Key Sectors Covered

The index includes companies operating in the following sectors:

·         Renewable Energy

·         Electric Vehicles (EVs)

·         Water Treatment and Water Management

·         Recycling

·         Waste Management

 

4. Sector Allocation

·         Approximately 86% of the index is allocated to the Renewable Energy sector.

·         The remaining 14% is distributed among:

o    Electric Vehicles

o    Water Management

o    Recycling

o    Waste Management

 

5. Number of Companies in the Index

·         The index consists of approximately 25 companies.

·         These companies have been selected based on their participation in environmentally focused and sustainable growth areas.

 

6. Minimum Investment Amount

·         The minimum investment required is ₹500.

·         This makes the fund accessible even to small investors.

·          

7. Exit Load

·         An exit load of 1% will be charged if units are redeemed within 15 days from the date of allotment.

·         No exit load will be applicable after 15 days.

8. Key Benefits of the Fund

Low-Cost Investing

·         Being an index fund, it generally comes with lower management expenses compared to actively managed funds.

 

Exposure to Future Growth Sectors

The fund provides exposure to emerging and high-growth sectors such as:

·         Solar Energy

·         Wind Energy

·         Electric Vehicles

·         Green Infrastructure

 

Long-Term Growth Potential

·         Investments in environmentally focused industries are increasing across India.

·         This trend may create significant long-term growth opportunities.

 

9. Factors Investors Should Consider

 

Thematic Fund Risk

·         This is a thematic index fund that focuses only on environment-related sectors.

·         It does not offer broad market diversification across all industries.

·         As a result, volatility may be higher than diversified equity funds.

 

Sector Concentration Risk

·         Since Renewable Energy accounts for a large portion of the index, the fund’s performance may be heavily influenced by developments in that sector.

Long-Term Investment Horizon Required

·         The fund may be more suitable for investors with a time horizon of 5–10 years or longer rather than those seeking short-term gains.

 

10. Who Should Consider This Fund?

 

This fund may be suitable for investors who:

·         Are interested in environmental and sustainability-focused investing.

·         Want exposure to future-oriented growth sectors.

·         Have a long-term investment horizon.

·         Are comfortable with higher levels of risk.

·         Already maintain a diversified investment portfolio.

 

Conclusion

The Motilal Oswal BSE Clean Environment Index Fund offers investors an opportunity to participate in India’s growing green economy. By investing in sectors such as renewable energy, electric vehicles, water management, recycling, and waste management, the fund provides exposure to industries that are expected to play an important role in the country’s future development.

 

However, as a thematic index fund, it carries concentration and sector-specific risks. Investors should evaluate their risk tolerance, investment objectives, and time horizon before investing. For those with a long-term perspective, this fund could be an interesting addition to a well-diversified portfolio.

 

For More details and investment

 

Sivakasi Manikandan, MBA (F&M), [MBA, I & FP], 

FChFP, CIS, AMFI, CII (London)

Managing Director – AISMONEY

 

AMFI Registered Mutual Fund Distributor - ARN-33652

 

No. 21, MBT Road, (Opp) Indian Bank, Walajapet  - 632 513
Ranipet Dt. Tamil Nadu, India.

+ 91 98405 77675
+ 91 96777 66393  (Office)
 support@aismoney.com

http://www.aismoney.com/

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes.