Motilal Oswal launches 10-yr gilt fund

Motilal Oswal Asset Management announced the launch of MOSt 10-year Gilt Fund, a scheme which invest almost its entire corpus in ten-year government securities. It is the first fund in India, which allows retail investors open access to ten year G-Secs.

MOSt 10 Year Gilt Fund will primarily invest (90% to 100%) in 10-year benchmark government security. It will also invest (up to 10%) in other government securities (7 to 12 years), T Bills, cash management bills, CBLO and Repo.

 “With this fund, investors now have a pure-play on the interest rate cycle as well as a long term asset allocation product. As interest rate cycle may peak in the near future, this could be a good time to take an exposure to G-Secs, and the 10-year G-Sec is the most optimal exposure, as investors may stand to gain from capital appreciation,” said  Nitin Rakesh, MD & CEO, Motilal Oswal Asset Management Company.

MOSt 10 Year Gilt Fund, is an open ended fund structure with both the dividend and growth options. The new fund Offer will be open for subscription on November 21 and will close on December 5. The minimum subscription amount is Rs 10,000 and the additional investment of Rs 1,000 and multiples of Re 1 thereafter. The proposed expense ratio for the scheme is 0.99%.