Motilal Oswal 5 Year G-Sec ETF – Can we expect past performance of 9.5% annualized returns of Index?

Motilal Oswal 5 Year G-Sec ETF – Review

Motilal Oswal mutual funds has bunch of ETFs in its portfolio. Now Motilal Oswal MF has come up with 5 year G-Sec ETF that has opened for subscription on 23rd November, 2020. This ETF would replicate and invest in the securities of Nifty 5 Year G-Sec Index. This index has outperformed and gave 9.5% annualized returns in the last 5 years. Can we expect similar performance for Motilal Oswal 5 Year G-Sec ETF NFO? Should we invest in Motilal Oswal 5 Year G-Sec ETF or avoid?

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What are Exchange Traded Funds (ETFs)?

ETFs are generally passively managed mutual fund schemes tracking a benchmark index and reflect the performance of that index. 5 Year G-Sec ETF is where it tracks the Nifty 5 year Benchmark G-Sec Index.

Benefits of investing in an ETF

1) It tracks the index underlying stocks / securities

2) It has a low expense ratio as fund manager would invest in the underlying stocks

Motilal Oswal 5 Year G-Sec ETF – NFO Issue details

This is an open-ended Exchange Traded Fund tracking NIFTY 5 Year Benchmark Index. Here are the ETF NFO issue details.