Motilal Oswal Asset Mutual Fund has introduced a new fund offer (NFO) called the Motilal Oswal Digital India Fund.
This is an open-ended equity scheme that will invest in sectors like technology, telecom, media, entertainment, and other digital industries.
The primary goal of this fund is to help investors grow their capital over the long term.
The fund is open for investment from October 11 to October 25.
Focus on Digital Sector Companies
The purpose of this NFO is to invest in companies related to the digital sector that have strong potential for future growth.
It will focus on equity and equity-based instruments, including businesses involved in software, hardware, internet services, and e-commerce.
The benchmark for this fund is the BSE Tech Total Return Index.
Motilal Oswal highlights India’s rapid digital expansion, with the number of internet users expected to hit one billion by next year.
Smartphone users have also increased 30 times since 2010, and the use of UPI (Unified Payments Interface) is growing rapidly.
Internet Growth Boosts E-commerce and Social Media
A report shows that 38% of people in rural areas are now conducting digital transactions, and on average, each Indian spends about 6.45 hours online daily.
This digital shift has fueled the growth of e-commerce and social media platforms, as well as fintech, foodtech, insurtech, and digital logistics businesses.
The digital sector is now estimated to offer opportunities worth around $900 billion.
Prateek Agarwal, CEO and MD of Motilal Oswal Asset Management, emphasized that India’s internet economy is expanding, and the company aims to create a strong fund based on these trends.
Risk Management in Place
To minimize risk, the fund has implemented various strategies.
According to the company’s Chief Investment Officer, Niket Shah, India’s digital sector is now on par with that of the United States, with plenty of opportunities for growth in the tech industry.
He noted that technology usage is increasing rapidly among the youth, and the IT sector continues to advance.
Motilal Oswal aims to be part of this growth through its NFO.
