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Broad-based market indices are back in focus with the new fund offer (NFO) of Motilal Oswal BSE 1000 Index Fund opening for subscription.

- SARBAJEET K SEN

Broad-based market indices are back in focus with the new fund offer (NFO) of Motilal Oswal BSE 1000 Index Fund opening for subscription. Fund houses like Mirae, Bandhan, Groww, and Angel have launched passively managed schemes which track the Nifty Total Market Index.

"These funds provide broad market exposure through a single investment, eliminating the need to choose individual stocks or select between different market segments like large, mid, or smallcap. This makes it easy for investors, especially beginners, to gain diversified access to the entire market without the complexity of constantly managing and rebalancing a portfolio," says Sirshendu Basu, head-products, Bandhan Asset Management Company (AMC).

Motilal Oswal BSE 1000 Index Fund tracks the performance of the BSE 1000 Total Return Index (TRI), subject to tracking error. This index covers the top 1,000 stocks by market capitalization listed on the BSE. Another broad market index tracked by index funds and exchange-traded funds is the Nifty Total Market Index, which features the top 750 listed stocks.

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