Motilal Oswal Mutual Fund (MOMF) has introduced its new fund offer (NFO) called the Motilal Oswal Innovation Opportunities Fund.
This is an open-ended equity scheme focused on the theme of innovation. The NFO will be available from January 29, 2025, to February 12, 2025.
The goal of this fund is to achieve long-term capital appreciation, though returns are not guaranteed. It falls under the Equity Scheme – Sectoral/Thematic category, meaning it will invest in specific sectors or themes.
If you’re interested in companies that focus on innovation and new technologies, this could be a good choice, though it’s important to remember that there are no guaranteed returns.
Investment Strategy and Approach
The Motilal Oswal Innovation Opportunities Fund aims to offer growth by investing in innovative companies and emerging trends.
The fund will use the Nifty 500 Total Return Index as its benchmark and will invest in companies of all sizes.
The fund follows a unique investment strategy, selecting around 35 companies that focus on innovation and long-term growth potential.
The approach is high-active share and high-confidence, meaning it focuses on companies with strong disruptive potential.
It adopts a bottom-up strategy, selecting stocks based on the individual performance and prospects of each company.
The fund also aims to create an “anti-fragile” portfolio, meaning it seeks protection from market volatility while potentially benefiting from it.
This fund is ideal for long-term investors who want to invest in innovative companies that can take advantage of market changes.
How Much to Invest?
Investing in the Motilal Oswal Innovation Opportunities Fund can start with as little as Rs 500, whether through a lump sum or Systematic Investment Plan (SIP).
For SIPs, you can start with Rs 100 for daily SIPs, Rs 500 for weekly, fortnightly, and monthly SIPs, and Rs 1,500 for quarterly SIPs. The minimum for annual SIPs is Rs 6,000.
The SIP date will default to the 7th of every month, and if this date falls on a holiday, the transaction will happen on the next business day.
For redemptions or switching out of the fund, the minimum amount is Rs 500 or the account balance, whichever is lower.
Additional investments can also be made starting from Rs 500, and post-dated cheques are not accepted.
Company’s Vision for Innovation
India’s innovation landscape is rapidly growing. The country has improved its ranking in the Global Innovation Index, moving from 66th place in 2013 to 39th place in 2024.
This growth is supported by factors like digital transformation, a thriving startup ecosystem, green energy adoption, and government initiatives like PLI and Make in India.
Prateek Agarwal, MD and CEO of Motilal Oswal Asset Management Company (MOAMC), highlighted that India’s changing demographics, evolving consumer behavior,
and increasing disposable income contribute to this innovation-driven progress. He sees this as an opportunity for investors to tap into innovative and disruptive companies.
Niket Shah, the Chief Investment Officer at Motilal Oswal Mutual Fund, emphasized that this fund is tailored for investors looking to capitalize on India’s growth story by investing in transformative opportunities in companies, sectors, and the economy.
Fund Allocation and Strategy
The fund’s allocation will be divided as follows:
65% will be invested in in-house themes.
25% will be invested in external themes.
10% will be reserved for risk mitigation.
The fund will view temporary disruptions as opportunities, seeking long-term value and growth even in times of uncertainty.
Fund Management Team
The Motilal Oswal Innovation Opportunities Fund will be managed by a team of experienced professionals:
Niket Shah (Chief Investment Officer, Fund Manager)
Atul Mehra (Fund Manager)
Rakesh Shetty (Fund Manager – Debt Component)
Sunil Sawant (Fund Manager – Overseas Component)
