Motilal Oswal S&P 500 Index Fund, which lately suspended investments, together with present SIPs, at present has about 3% publicity to Vanguard S&P 500 ETF items.
“Buying 500 shares requires an enormous corpus. If we’ve got inflows of solely ₹20-30 lakh a day, deploying that turns into inefficient. In such instances, we deploy that quantity in Vanguard ETF and as soon as that turns into huge, we change it over to shares,” mentioned Pratik Oswal, head – passive funds, Motilal Oswal AMC.
Further, after the markets regulator Sebi restricted abroad investments by mutual funds (MFs) in January, the inflows from the persevering with SIPs till now have been directed to Vanguard ETF; investing in ETFs has a separate restrict.
Oswal mentioned that they will hold the S&P 500 fund open even now as they will put money into Vanguard ETF, however determined to droop it to have uniformity with closing different abroad funds.
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