MOSL S&P 500 Index Fund NFO – Should you invest?

Sathish - Wealth Consultant, Author - Untold Wealth Secret, Investment consultant, Mutual Funds

MOSL S&P 500 Index Fund NFO – Should you invest?

MOSL S&P Index fund has been launched today for subscription as NFO.

In recent times Index Funds are gaining popularity among investors and

This fund is an International Index Fund – Should you take part ? Will it give you handsome returns?

MOSL S&P Index fund will invest in companies which are part of S&P index with same weight age and propositions.

S&P Index is a 60 year old index since 1968. This included top leading companies with categories in 11 industries. And amazingly 80% of market capitalisation has been captured by this index.

Current top holdings includes Apple, Microsoft, Amazon, Face Book, Alphabet Etc…

These following 5 factors can decide whether you can invest in this NFO or not

  1.  Our love for International Funds to diversify will always emerge. But check you have this investment and diversification need and appetite for this fund. Check you have enough diversification on your existing portfolio like Hybrid Funds, Large Cap, Midcap, Small Cap and Sectoral Funds with enough positions and exposure. Buy only when your investment exceeds among all these categories.
  • Taxation – According to Indian taxation this fund is classified into debt taxation – That means if you withdraw with in 3 years, you will taxed as per your income slabs ( If you are in 30% Slab, you need to pay 30% as tax on gains )
  • Consider this post Corona Situation – Asian Countries and especially India is a better off position than most of western countries and US. The post recovery of economy is expected to be fast and easy for India than US.

Hence it is making much sense to invest in India at this juncture and take advantage of the low level.

Conclusion – There is no necessity to jump into this fund at this time with no track record and for the sake of international Love.

Pls don’t blindly jump into this fund for fancy and international exposure. Check your investment objective and understand that if you have the need for diversification, then you may consider investing on this fund.

Sathish Kumar

Equity Fund Manager | Wealth Consultant | Author


Whatsapp / Call –  +919841058689

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