Motilal Oswal Asset Management Company (MOAMC) has listed the Motilal Oswal Nifty India Defence ETF on the National Stock Exchange (NSE), and it goes by the name MODEFENCE. This is the first ETF on the defence. As some of you might know that I have been investing in ETF using the ETF ki dukan, so I track almost all the ETFs in the Indian Market.
So I have added this ETF in the sheet and also bought it yeaterday as it was little down. The defence stock has given a great returns in last 2 years. So in last 3 years the CAGR is almost 55% that means your money would have multiplied several times.
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And looks like it might do well in coming days too. This is because the current government is continuing investment in defence sector. This is the first time in 3 to 4 years that the defence budget has not increased but it is not decreased too. So the money is actually flowing to the defence sector from the government and having the ETF in your portfolio majes sense.
Recently a lot of people are actually getting into ETF investing and a lot of finfluencers are also recommending to invest in the ETF. Now they are actually recommending it more than Mutual funds because of the problem they faced while investment. Actually if you are investing in equity mutual fund you have to invest before 3 PM to get the current day NAV or Net Asset Value.
Last month when the market fall by 3% a lot of people tried to invest in Mutual Fund for cost averaging but it failed or they did not got that day NAV and thus next day the market went up by 3% so they did not got the benefit of fall.
And that's why people are actually recommending ETF now because, you can buy or sell the ETF within market hours and thus you can take advantage of the market fall on that particular day. So that why I am actually doing both now, SIP in Mutual Fund and Buy In Dip in the ETF to take advantage of both world.
