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NFO alert: Motilal Oswal Mutual Fund launches Motilal Oswal Business Cycle Fund
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4 min read | Updated on August 07, 2024, 16:45 IST
SUMMARY
Motilal Oswal Business Cycle Fund, open from August 7 to August 21, 2024, targets long-term capital appreciation by investing in equities across business cycle stages. It requires a minimum investment of ₹500 and has a 1% exit load if redeemed within 3 months.
The performance of the Motilal Oswal Business Cycle Fund will be benchmarked to the performance of the Nifty 500 TRI.
Motilal Oswal Business Cycle Fund is a new open-ended equity fund from Motilal Oswal Mutual Fund aiming to generate long-term capital appreciation by investing in stocks across different business cycle stages. The fund is open for subscription from August 7 to August 21, 2024. It has a minimum investment of ₹500 and carries a 1% exit load if redeemed within 3 months of allotment.
Motilal Oswal Business Cycle Fund
The investment objective of the Motilal Oswal Business Cycle Fund is to achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of companies investing with a focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles. However, there can be no assurance that the investment objective of the scheme will be realized.
Risk-o-meter:
Funds Allocation
| Types of Instruments | Minimum Allocation (% of Net Assets) | Maximum Allocation (% of Net Assets) |
|---|---|---|
| Equity & Equity related instruments selected on the basis of business cycle theme | 80 | 100 |
| Equity & Equity related instruments of Other than above | 0 | 20 |
| Debt and Money Market instruments (including cash and cash equivalents) | 0 | 20 |
| Units issued by REITs and InvITs | 0 | 10 |
| Units of Mutual Funds | 0 | 5 |
Who should invest in this fund?
This NFO of Motilal Oswal Business Cycle Fund is suitable for investors who are seeking Capital appreciation over the long term and investing predominantly in equities and equity-related instruments selected based on business cycle
Benchmark
The performance of the Motilal Oswal Business Cycle Fund will be benchmarked to the performance of the Nifty 500 TRI.
Peer Fund Schemes
| Scheme Name | AUM (Crore) | Expense Ratio (%) | 1 Year Returns (%) | Since Launch Ret (%) |
|---|---|---|---|---|
| Quant Business Cycle Fund | 1353.13 | 2.09 | 60.67 | 63.23 |
| Tata Business Cycle Fund | 2572.99 | 1.92 | 43.62 | 24.39 |
| HSBC Business Cycles Fund | 924.97 | 2.35 | 41.15 | 14.9 |
| ICICI Prudential Business Cycle Fund | 10893.02 | 1.73 | 40.77 | 25.63 |
| Baroda BNP Paribas Business Cycle Fund | 568.27 | 2.43 | 39.14 | 16.81 |
| Axis Business Cycles Fund | 2825.23 | 1.95 | 34.83 | 37.17 |
| Kotak Business Cycle Fund | 2620.03 | 1.93 | 32.48 | 23.79 |
| ABSL Business Cycle Fund | 1817.47 | 2.09 | 30.48 | 15.24 |
| HDFC Business Cycle Fund | 3071.50 | 1.95 | 26.9 | 22.71 |
Who Manages the Scheme?
Ajay Khandelwal
Ajay has 14 years of experience in fund management and research-related activity.
Niket Shah
Niket has 14 years of overall experience. Motilal Oswal Asset Management Company Ltd.– Vice President – Associate Fund Manager. Motilal Oswal Securities Ltd. – Head of Midcaps Research.
Santosh Sing
Singh has an overall experience of over 16 years. Singh was associated with Haitong International Securities Ltd. as Head of Research and Lead Analyst from 2015 to 2018 (years), where he was responsible for Research products and overall Research strategy. He was also associated with SG Asia Holdings as analyst from 2014 to 2015 years and also with Espirito Santo Securities as Lead analyst from 2007 to 2014 and so on. Singh was ranked the No. 1 analyst in India in the Asia money polls for the insurance sector continuously for three years from 2015 to 2017.
Atul Mehra
Atul has over 16 years of overall experience. Motilal Oswal Asset Management Company Ltd – Senior Vice President – Fund Manager – PMS and AIFs. (2013 – present).
Rakesh Shetty (Fund Manager – Debt Components)
He has more than 15 years of overall experience and expertise in trading in equity, debt segment, Exchange Trade Fund management, Corporate Treasury and Banking.
Sunil Sawant (Fund Manager - Overseas Component)
Sunil has been associated with the Company since 2018 for Alternates Business as a Dealer.
Conclusion
The Motilal Oswal Business Cycle Fund offers a strategic approach to capitalise on various business cycle stages. With a strong management team and competitive expense ratios, it presents a promising option for long-term equity investors.
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