Motilal Oswal Nifty 500 Index Fund Returns – Investing in mutual fund is just an advertisement or could be a joke for few because most of the index funds or mutual funds do not perform well even if you wait for 1 or 2 year. But some mutual funds or index fund are managed by highly professional traders and investors which brings return about 10 to 15% which is far much better than fixed deposit . But it is a myth that mutual funds or index funds are safer compared to fixed deposit or do not provide secure returns when matched with fixed deposit.

In this article , we shall be discussing if you are a risky investor or if you want to gain more returns on your investment investing in for long term then how you can raise your earnings with investing in Motilal Oswal Nifty 500 Index fund . On the other hand , you can also compare the fund with fixed deposit for risky or safer returns.

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Investing in Fixed Deposit Vs Mutual Fund

Fixed deposit is a safe way to get returns on your funds while fixed deposit also provide liquidity to the investor to use his hard earn money to spend in emergency . But investing in asset like gold or property could be a long term decision which restricts the liquidity of the investors .

Fixed deposit in India provides a safe return of 6% to 7% for a year or more duration . It is a safe way to lend money to the bank for a return of 7% and the principal is returned safe as it is . It is protected by the bank and is used to lend further.

Mutual fund or Index fund is an alternate way of investing in stock market rather that investing in share directly you in an index fund invest in index stock or index value of the share market . The investing term used in investing in mutual fund or index fund is Net Asset Value (NAV) where you purchase a NAV of the mutual fund or index fund and can convert to cash at the market price whenever needed.

Is every Motilal Oswal Nifty 500 Index Fund Worth Investing ?

Motilal Oswal Nifty 500 Index fund compared to a normal mutual fund invest in only Nifty 500 stocks which are out performing or are getting higher returns . The returns in the fund are average on day basis by investing in multiple stocks under Nifty 500.

For an investor , you can start investing in the fund through any brokerage app which allows SIP or direct investment in mutual fund or index funds . The Motilal Oswal nifty 500 index fund NAV as on 7-12-2023 is Rs 20.8187, where on an average it provided for about 18% return as report provided by Moneycontrol.com.

The index fund comes with a exit load of 1.04 % if you exit the fund before one year of investment .  It will be deducted on annual basis by the fund manager to manage your funds.

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What is the risk in Investing Motilal Oswal Nifty 500 Index Fund ?

The risk of investing in Motilal Oswal Nifty 500 index fund is you are investing your capital in a highly risky asset where a bad news or a decline in share market can lower or decline your capital very down or can even appreciate your capital mutliple times all depending on the market situation .

Also , investing in Motilal Oswal Nifty 500 Index Fund comes with a exit expense of 1.04% which is definite to pay even if you earn or not from the returns or the NAV file .

How investment in Motilal Oswal Nifty 500 Index Fund is done ?

Investment in any mutual fund can be done directly from the fund brokers or through any demat broking company like Zerodha or Groww company. Also , you can visit on the fund house official website of Motilal Oswal Nifty 500 index fund page for investing .

You need to deposit the fund in your bank account and also pay through the e-payment gateway for opening the Index fund with Motilal . You can pay in SIP where amount will be deducted per month basis and divided on NAV basis or lump sum amount in a year can be paid once .

Should you rely last 3 year performance of Motilal Oswal Nifty 500 Index Fund ?

No , never trust the performance based on indices provided by broking houses or provided by the company itself in the reports. Last 3 year performance of NAV will depend on different situations political or news or economy but future 3 years will depend on the company orders and growing financial status or profits of the company .

How to check if the stock or the Mutual fund is actual performing or not ?

It is better to check the price movement of last 1 year and not the movement only but also the NAV value increase and decrease in one year . For instance you invest Rs 1 lakh in 2022 in Motilal Oswal Nifty 500 fund you get the following fund NAV at Rs 15 = 6666 units .

After one year in 2023, the NAV became Rs 20 so your earning on 6666 units will become 133320 in one year so it will be around 25% return . So you can analyze the price movement .

Can you rely on News Channels or Broking House advice on Investing in Motilal Oswal Nifty 500 Index Fund ?

No , it is better to rely only on NAV movement in the last one year and also to check the top stocks invested in the fund with the money of investors and their movement . You can also check for the top stocks choosing of the fund and can invest in same equity stocks by side to earn additional returns on your investment.

Can you redeem money liked fixed deposit in Motilal Oswal Nifty 500 Index Fund before 1 year ?

Yes , investment in mutual funds is a liquid investment just like Fixed deposit while in fixed deposit you pay for loss in interest in this index fund , you have to pay for the exit load before and after one year.

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Motilal Oswal Nifty 500 Index Fund Video Help 

Conclusion 

Motilal Oswal Nifty 500 Index fund is one of the best investment above than fixed deposit which you can trust blindly. Also , you can keep investing in both fixed deposit and index fund for better returns . Do not rely completely on equity or debt .