Motilal's India Defense Fund is off to a great start

Motilal Oswal has scored a major win with its Nifty India Defense Mutual Fund, collecting over ₹1,600 crore during its New Fund Offer (NFO).

• This is the highest collection ever by an equity index fund during the NFO period, highlighting strong investor interest in the defense sector.

Backdrop – the Nifty India Defense Index has more than doubled in the past 12 months as fervor around defense companies grows, driven by increasing military spending, a government mandate to procure arms domestically, and escalating geopolitical crises worldwide, including conflicts in Ukraine and the Middle East.

• India's defense spending is projected to reach $84 billion in 2024, representing nearly 2.3% of the country's GDP.
• Also, investing heavily in defense manufacturing, India is aiming to achieve $5 billion in defense exports by 2025.

What else matters – Motilal Oswal's index fund will track the performance of the Nifty India Defense Index, net of fees. The fund is set to go live on July 9th and will continue to accept applications from investors.