Motilal Oswal Mutual Fund Launches Motilal Oswal Quant Fund

Motilal Oswal Mutual Fund just launched a new fund called Motilal Oswal Quant Fund. This scheme uses a computer program to pick stocks to grow your money over the medium to long term. It is an open-ended fund, so you can buy and sell units whenever you want. Be aware though, it is like a sectoral fund that focuses on picking stocks based on computer models, so it can be a bit risky. There is no entry load to invest, but if you cash out within 15 days of buying in, you will pay a 1% exit load. Otherwise, you are good to go. You can start investing with as little as ₹500 and add more later. The fund is open for subscription starting today, June 3rd, 2024, but only until June 5th 2024.

Why Invest in the Quant Funds?

Investing in quant funds can be a smart move because it takes the emotions out of investing. Is it tough to make decisions based on feelings or gut instincts? That can lead to mistakes, like holding on to losing stocks for too long or selling winners too early. With quant funds, decisions are based on mathematical models, not human emotions, so there is less chance of making those kinds of errors. These models are regularly reviewed and updated by fund managers, ensuring they stay effective and relevant.

Another great thing about quant funds is that they combine the benefits of active management with the consistency of a rules-based approach. This means you get the advantages of expert stock selection and risk management, without the downsides of human biases.

Unlike passive funds, which just aim to match the market, quant funds are designed to beat it, offering the potential for higher returns. So, if you are looking for a more reliable and potentially more profitable investment strategy, quant funds could be a great option.

Motilal Oswal Quant Fund

The investment objective of the Motilal Oswal Quant Fund is to generate medium to long-term capital appreciation by investing in equity and equity-related instruments selected based on a proprietary quantitative investment framework. However, there can be no assurance that the investment objective of the scheme will be realized.

Benchmark

Risk-o-meter:

Funds Allocation

Who Should Invest?

Investors whose appetite is above the high-risk quotient, belong to a category of long-term growth ones and if they have at least five years to invest in either SIP or Lump Sum transactions would be able to consider buying the Motilal Oswal Quant Fund but should also consult their financial advisers or brokers selling mutual fund products for more information to determine whether the said fund meets their investment objectives.

Peer Schemes

Who Manages the Scheme?

Conclusion

Motilal Oswal Quant Fund offers a data-driven approach to investing, aiming for higher returns by minimising human biases. With experienced managers and a focus on equity investments, it suits investors with a high-risk appetite and long-term growth goals. Potential investors should consult financial advisors to ensure alignment with their investment objectives.