Motilal Oswal Mutual Fund (MOMF) has introduced a new fund offer (NFO) called the Motilal Oswal Innovation Opportunities Fund.
This is an open-ended equity scheme focused on innovation, and the NFO will be available from January 29, 2025, to February 12, 2025.
The fund’s primary goal is to achieve long-term capital appreciation, though returns are not guaranteed. As a sectoral/thematic equity scheme, it will focus on specific sectors or themes.
If you are interested in investing in companies driving innovation and technological advancements, this could be an option to consider, but remember, returns are not assured.
Investment Strategy and Approach
The Motilal Oswal Innovation Opportunities Fund seeks to invest in innovative companies and emerging trends to drive growth. The fund will track the Nifty 500 Total Return Index and will invest in companies of various sizes.
With a unique strategy, the fund will target around 35 companies that focus on innovation and long-term growth potential.
It follows a high-active share and high-confidence approach, focusing on companies with strong disruptive potential.
The fund adopts a bottom-up strategy, selecting stocks based on the individual performance and prospects of each company.
Additionally, the fund aims to create an “anti-fragile” portfolio, designed to handle market volatility while potentially benefiting from it.
This fund is best suited for long-term investors looking to invest in innovative companies that can adapt to market changes.
Investment Details
You can begin investing in the Motilal Oswal Innovation Opportunities Fund with a minimum of Rs 500 through either a lump sum or Systematic Investment Plan (SIP). The SIP options are as follows:
1) Rs 100 for daily SIPs
2) Rs 500 for weekly, fortnightly, and monthly SIPs
3) Rs 1,500 for quarterly SIPs
4) Rs 6,000 for annual SIPs
The SIP date will be set to the 7th of every month, with adjustments if the date falls on a holiday.
For redemptions or switching funds, the minimum amount is Rs 500 or the account balance, whichever is lower.
Additional investments can also be made with a minimum of Rs 500, and post-dated cheques are not accepted.
Vision for Innovation and India’s Growth
India’s innovation landscape is rapidly growing, with the country rising from 66th to 39th place in the Global Innovation Index from 2013 to 2024.
Factors like digital transformation, a booming startup ecosystem, green energy adoption, and government initiatives such as PLI and Make in India have contributed to this progress.
Prateek Agarwal, MD and CEO of Motilal Oswal Asset Management Company (MOAMC), noted that India’s changing demographics, evolving consumer behavior,
and growing disposable income are key drivers of innovation. He views this as an opportunity for investors to engage with innovative, disruptive companies.
Niket Shah, Chief Investment Officer at Motilal Oswal Mutual Fund, emphasized that the fund is designed for those seeking to benefit from India’s growth by investing in transformative companies, sectors, and economic opportunities.
Fund Allocation and Risk Management
The fund will allocate its investments as follows:
1) 65% in in-house themes
2) 25% in external themes
3) 10% for risk mitigation
The fund aims to capitalize on market disruptions by viewing them as opportunities to create long-term value and growth.
Experienced Fund Management Team
The Motilal Oswal Innovation Opportunities Fund will be managed by a skilled team of professionals:
Niket Shah – Chief Investment Officer, Fund Manager
Atul Mehra – Fund Manager
Rakesh Shetty – Fund Manager (Debt Component)
Sunil Sawant – Fund Manager (Overseas Component)
