Motilal Oswal Asset Management Company (MOAMC) launches
‘Motilal Oswal Large Cap Fund''
Mumbai, 15 January2024: Motilal Oswal Asset Management Company (MOAMC) announces the launch of its latest investment offering, the ''Motilal Oswal Large Cap Fund’. This open-ended equity scheme is strategically designed to provide investors with a unique opportunity to tap into the potential of the large-cap segment.
Key Fund Details:
Nature: An open-ended equity scheme predominantly investing in large-cap stocks
Investment Objective: To achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of large-cap companies. However, there can be no assurance that the investment objective of the scheme will be realized.
NFO Period: 17th January to 31st January 2024
Portfolio Strategy: The fund aims to maintain a strategically balanced portfolio with exposure of a minimum of 80% in the Nifty 100 large-cap stocks, complemented by a thoughtful 20% allocation in small-cap/Mid/IPO/Pre-IPO/Foreign Equity.
Ideal Investor Profile: The product is designed for investors looking for long-term capital growth. It is ideal for investors wanting to invest in equity and equity related instruments of large-cap stocks. The fund's performance will be benchmarked against Nifty 100 TRI.
Why choose MO Large Cap Fund: The fund would be based on a unique "ACE" construct, featuring a High Active Share (maintaining 60-80% against peers'' <50%), High Conviction & Focused Portfolio (Aiming to have a focused portfolio of 30 stocks, distinguishing from peers with an average of 58), and an Equi-Weighted Portfolio Strategy (deviating from index & peers by maintaining around 10%allocation to top 3 holdings). The goal is to provide a distinctive positioning, steering clear of market norms, and creating a diversified portfolio for consistent returns. The above construct is based upon the current portfolio construct.
Mr. Navin Agarwal, MD & CEO, Motilal Oswal AMC said, “Our midcap fund has consistently garnered a positive response from investors over the years. Following the successful launch of our Small-Cap fund last month and now introducing the Large-Cap fund, we aim to diversify our offerings across various market capitalisations.”
“Given the improving strength in our economy and businesses, there's a potential ,resurgence of Foreign Institutional Investors (FIIs) returning to India. Historically, a significant portion of FIIs'' allocation gravitates towards Large Cap. Considering the currently attractive valuations in the Large-cap segment, we believe it's an opportune moment to step into the large-cap space to capitalise on the potential upside,” added Navin Agarwal.
Large-caps have consistently performed over the years by being in the top 2 quartiles for 9 out of 11 years.
Mr. Atul Mehra, Equity Fund Manager at MOAMC said, “Indian Large Caps often mirror mid and small caps in the Global context, presenting a growth canvas for savvy investors. Today, Indian Large Caps boast the apex of quality with soaring RoE, robust PAT, and impressive Sales figures. Furthermore, their valuations stand at a modest with trailing PE at 21.9 (Source: Nifty Indices and MOAMC internal research), unveiling an ideal blend of quality and growth potential. Our new fund is an invitation to investors to A-C-E their game –leveraging our unique framework of ‘ACE’ – High ‘Active’ Share (~60-80%), High ‘Conviction’ (aimed at ~30 stock portfolio) 3) ‘Equal’ weight portfolio. This strategy positions us uniquely against the benchmark, promising a dynamic and actively managed portfolio that navigates market complexities with finesse.
We're excited to offer investors an exceptional avenue for high-quality, high-growth opportunities in the Indian market.”
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
The term ‘Hi-Quality and Hi-Growth Portfolios’ refer to Motilal Oswal AMC’s defined fund management processes based on internal qualitative and quantitative research parameters & not be construed as investment advice to any party.
Note: The product labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when actual investments are made.
About Motilal Oswal Asset Management Company:
Motilal Oswal Group possesses a legacy in equities for over 3 decades. Motilal Oswal Asset Management Company Ltd. (MOAMC) is registered with SEBI as the Investment Manager for Motilal Oswal Mutual Fund. It was incorporated on November 14, 2008. It provides Investment Management and Advisory Services to investors based within and outside India and has Mutual Funds, AIFs, Portfolio Management Services business.
For more details, contact:
Rohini Kute
Head of Group Corporate Communications,
Motilal Oswal Financial Service Ltd
Rohini.kute@motilaloswal.com