Description

Motilal Oswal Asset Management announces changes to Fund of Fund schemes including name changes and benchmark revisions effective August 29, 2025.

Summary

Motilal Oswal Asset Management Company Limited announces changes to its Fund of Fund (FOF) schemes to align with SEBI’s framework for FOFs with multiple underlying funds. The changes include scheme name modifications, benchmark index revisions, and updates to eligible underlying schemes, effective August 29, 2025.

Key Points

  • Motilal Oswal Developed Market Ex US ETFs Fund of Funds renamed to Motilal Oswal Developed Market Ex US ETFs Overseas Equity Passive FOF
  • Benchmark index change for Gold and Silver ETFs Fund of Funds from LBMA pricing to domestic gold and silver prices
  • Addition of Motilal Oswal Gold ETF and Silver ETF to eligible underlying schemes list
  • Changes align with SEBI framework issued February 6, 2025 and clarified June 30, 2025

Regulatory Changes

SEBI has mandated existing Fund of Fund schemes investing in multiple underlying schemes to be re-categorized according to the “Framework for launching of Fund of Fund (FOFs) Schemes with multiple underlying funds”. This requires alignment of scheme attributes including naming conventions and benchmark specifications.

Compliance Requirements

  • Investment managers must update Scheme Information Documents (SID) and Key Information Memorandums (KIM)
  • Scheme names must reflect the passive/active nature and asset class focus
  • Benchmark indices must align with actual underlying investments
  • Eligible underlying schemes list must be updated to include house funds where applicable

Important Dates

  • August 29, 2025: Effective date for all scheme changes
  • August 26, 2025: Date of circular issuance
  • February 6, 2025: Original SEBI framework communication date
  • June 30, 2025: SEBI clarification date

Impact Assessment

The changes are primarily administrative and aimed at regulatory compliance. Existing investors will see updated scheme names and documentation but the underlying investment strategy and portfolio composition remain largely unchanged. The addition of house ETFs to eligible underlying schemes may provide more investment flexibility but does not mandate their use.

Impact Justification

Administrative changes to existing fund schemes affecting current investors but not creating systemic market impact