Thread by @IamMisterBond

Another NFO - at an opportune time:

New Fund Offer (NFO) of Motilal Oswal Nifty G-sec May 2029 Index Fund. The NFO opens and closes on 02nd March 2023

Why should you invest in Motilal Oswal Nifty G-sec May 2029 Index fund?

It is a 6 year open ended #DebtScheme - comparable time frame to most popular investment alternative viz. 5 year #BankFD

With likely capture of Gross YTM of 7.40% - again comparable to current rates of 5 year FDs or even better

However, MO 2029 G Sec NFO scores over FDs on many counts:
1. More #TaxEfficient with 7 indexation benefits
2. Similar returns but scope for capital gains if redeemed before maturity (when interest rates soften)
3. Better #Liquidity as it is open ended debt scheme

4. Better #compounding as underlying 6 monthly coupons will be reinvested at 7.40% and compounded
5. Negligible #CreditRisk as it is G Sec
6. No prepayment charges if withdrawn earlier

7. Ignore intermittent #volatility and treat this as Hold to Maturity (#HTM) - just like FDs and avoid interest rate risk
8. Treat it like open ended #FMP - invest and hold till maturity (2029) or redeem in few years post interest rates softening

9. Earn higher coupon + capital gains if redeemed before 2029 and when rates soften

An ideal solution for those looking to invest in Debt + earn higher yields + possibility of capital gains

@MotilalOswalAMC
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@riteshpathak16
@akhilchat
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