Motilal Oswal unveils first mid-cap India ETF

Asset manager Motilal Oswal has launched its MOSt Shares Midcap 100 ETF on the National Stock Exchange of India, the first to track mid-cap Indian stocks.

The ETF is tied to the CNX Midcap index, which aims to capture the movement of the top 100 mid cap equities in the country, equivalent to 15% of the National Stock Exchange's market capitalisation.

The largest individual security is Asian Paints, which makes up 3.5% of the index, while each constituent stock has an individual weighting of under 5%. Over the last ten years, the CNX Midcap has registered a compound annual growth rate of 23%, significantly higher than that of the Nifty benchmark, which tracks the 50 largest Indian stocks, at 17%.

MOSt Shares M100 has been offered on a restricted basis since January and had already gathered assets of $32m by the point of its stock exchange listing, making it the fourth biggest equity ETF in India. The company says its fund has over 12,000 unique investors, with over 80% of its assets coming from individuals.

On its first day of trading last Friday, the ETF had a turnover of £10m, putting it in the top 25 most actively traded securities on the Indian stock exchange.