About Motilal Oswal 5 Year G-sec FoF

The Scheme seeks investment return that closely corresponds (before fees and expenses) total returns of the securities as represented by the Nifty 5 yr Benchmark G-Sec Index (Underlying Index), subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

This scheme offers investors an opportunity to invest in most liquid G-sec in the 5 year segment

Nifty 5 Yr. Benchmark G-Sec with it’s low correlation with equities, offers diversification opportunity helping investors reduce overall portfolio volatility

Given the duration of Nifty 5 Yr. Benchmark G-Sec Index, it falls in the sweet spot between short and long duration G-Sec

Historical Index Performance

Nifty 5 yr. Benchmark G-sec index has delivered superior returns over indices with longer tenor.

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Data Source: www.niftyindices.com, AMFI; Performance Data from 31-Aug-2006 – 31-Aug-2021; Hypothetical performance results may have inherent limitations and no representation is being made that any investor will, or is likely to achieve, performance similar to that shown. The above table/graph is used to explain the concept and is for illustration purpose only. It should not be used for development or implementation of any investment strategy. Past performance may or may not be sustained in future.

Illustration: Indexation Benefit Makes G-Sec more Attractive over Fixed Deposit

We compared pre & post tax CAGR of Fixed Deposits & Nifty 5 Year Benchmark G-Sec Index over three blocks of ‘5-year’ periods. Nifty 5 yr Benchmark G-sec index has noted higher pre and post tax returns.

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Source- Historical Fixed Deposit Rates - www.sbi.co.in, Nifty 5 Yr Benchmark G-Sec Index - www.niftyindices.com. Data from Jun 30, 2006 to Jun 30, 2021. ^Interest rate of SBI term deposits maturing between 5-10 years. Hypothetical performance results may have inherent limitations and no representation is being made that any investor will, or is likely to achieve, performance similar to that shown. The above table/graph is used to explain the concept and is for illustration purpose only. It should not be used for development or implementation of any investment strategy. Past performance may or may not be sustained in future.

Sweet Spot between short and long duration bonds

Falling Interest Rate Scenario
Rising Interest Rate Scenario

For purpose of illustration the modified duration has been assumed as follows-Short Duration funds- 2yrs, Nifty 5yr - 4yrs and for long duration- 8yrs.Hypothetical performance results may have inherent limitations and no representation is being made that any investor will, or is likely to achieve, performance similar to that shown. The above table/graph is used to explain the concept and is for illustration purpose only. It should not be used for development or implementation of any investment strategy. Past performance may or may not be sustained in future

Fixed Deposits vs Nifty 5 yr. G-sec Index

5 Yr. G-Sec noted higher calendar year returns in comparison to Fixed Deposits

Calendar Year Return
Year Nifty 5 Yr Benchmark G-Sec Index Bank F.D
2018 7.3% 6.3%
2019 10.6% 6.4%
2020 12.5% 5.5%

Source: Historical Fixed Deposite Rates - www.sbi.co.in, www.niftyindices.com. Fixed deposit rates are represented by SBI F.D rates for 1-2yr tenor. Performance as of Close of 31-Dec-2018 to 31-Dec-2020. Performance results may have inherent limitations and no representation is being made that any investor will, or is likely to achieve. Past performance may or may not be sustained in future. The above table/graph is used to explain the concept and is for illustration purpose only. It should not be used for development or implementation of any investment strategy.

Risk-Return Payoff

Period Returns Risk
1 Year 5.5% 2.7%
3 Year 10.2% 3.4%
5 Year 8.3% 3.1%
10 Year 9.0% 3.4%

Data Source: www.niftyindices.com, AMFI; All performance data in INR. Performance Data 31-Aug-2006 – 31-Aug-2021; Hypothetical performance results may have inherent limitations and no representation is being made that any investor will, or is likely to achieve, performance similar to that shown. The above table/graph is used to explain the concept and is for illustration purpose only. It should not be used for development or implementation of any investment strategy. Past performance may or may not be sustained in future.

Index Rolling Return (Annualised)

Description 3 Year 5 Year
Average 8.6% 8.7%
Median 8.6% 8.9%
Min 3.9% 5.4%
Max 12.6% 11.1%

Data Source: www.niftyindices.com, AMFI; 250 trading days in a year assumed to calculate rolling returns. Chart using daily 3 year rolling returns. Performance as of Close of Aug 31, 2006 – Aug 31, 2021; Performance results may have inherent limitations and no representation is being made that any investor will, or is likely to achieve. The above table/graph is used to explain the concept and is for illustration purpose only. It should not be used for development or implementation of any investment strategy. Past performance may or may not be sustained in future.

Index SIP Returns: Nifty 5 yr Benchmark G-sec Index

Nifty 5 yr Benchmark G-sec Index 1 Year 3 Year 5 Year 7 Year 10 Year
SIP Returns 4.6% 8.1% 8.4% 8.6% 8.9%
Amount Invested 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000
Market Value 1,22,985 4,06,989 7,40,570 11,39,575 18,97,880

Data as of close of August 31, 2021. For SIP returns, monthly investment of INR 10,000/- invested on the first business day of every month has been considered. Performance is calculated using Total Return Index, with zero cost/expenses. Past performance may or may not be sustained in the future.

Data Source: www.niftyindices.com. All performance data in INR. Data as on 01-Sep-2011 – 31-Aug-2021;  Hypothetical performance results may have inherent limitations and no representation is being made that any investor will, or is likely to achieve, performance similar to that shown. The above is for illustration purpose only. The above table/graph is used to explain the concept and is for illustration purpose only. It should not be used for development or implementation of any investment strategy The SIP amount, tenure of SIP, expected rate of return are assumed figures for the purpose of explaining the concept of advantages of SIP investments. The actual result may vary from depicted results depending on scheme selected. The above are not scheme SIP returns, but simulation of index SIP returns. It should not be construed to be indicative of scheme performance in any manner. Past performance may or may not be sustained in future.

Scheme Details

    • *Investors are requested to note that they will be bearing the recurring expenses of the fund of funds (FoF) scheme, in addition to the expenses of underlying schemes in which the fund of funds scheme makes investments. The indicative TER of underlying schemes for Motilal Oswal 5 Year G-Sec ETF is 0.18%.

      The expense ratio is subject to change upto the limit specified in SID at discretion of AMC. For tracking current expense ratio refer (www.motilaloswalmf.com)

  • Long term capital appreciation.
  • Return that corresponds generally to the performance of the Scheme, Motilal Oswal 5 Year G-Sec ETF through investment in units of Motilal Oswal 5 Year G-Sec ETF.

Riskometer

Investors understand that their principal will be at
Moderate risk

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SID

Common Application Form & KIM

Frequently Asked Question

  • The Motilal Oswal 5 Year G-Sec Fund of Fund seeks investment return that corresponds generally to the performance of the Scheme, Motilal Oswal 5 Year G-Sec ETF through investment in units of Motilal Oswal 5 Year G-Sec ETF.
  • The Fund of Fund offers investors an attractive low cost alternative to fixed deposit since it has practically no default risk, no lock-in, and historically attractive pre- and post-tax returns
  • Funds will be invested in underlying security i.e. Motilal Oswal 5 Year G-Sec ETF which tracks the Nifty 5yr benchmark G-Sec index. The Nifty 5yr Benchmark G-sec Index is a single bond index tracking the most liquid 5 year benchmark security issued by the Government of India.