Joining the universe of multi-cap mutual funds, Motilal Oswal Asset Management Company announced the launch of the “Motilal Oswal Multi Cap Fund.” Being an open-ended equity scheme, this fund will leverage the opportunities available across large, mid, and small-cap companies.
The New Fund Offer (NFO) opens on 28 May and ends on 11 June 2024. The scheme’s investment objective is to attain capital appreciation over the long term, mainly by investing in large, medium, and small-cap company equities and equity-related derivatives.
The scheme is benchmarked against the Nifty 500 Multicap 50:25:25 Index TR. The fund aims to maintain a well-balanced portfolio with a minimum of 25% in each of Small, Mid, and large-cap stocks, a maximum of 75% exposure to equity, and the remaining in Debt.
The ‘Motilal Oswal Multi Cap Fund’ is tailored for investors with a strategic investment horizon of 3-7 years. It presents a compelling opportunity to capitalize on the growth potential of emerging businesses driven by India’s robust economic expansion.
“The coming few years will be the transformative phase for the Indian economy. Solid macroeconomic conditions, healthy corporate earnings, peaking of interest rates, moderate inflation print, and ongoing policy momentum will help drive this growth in equity markets, too. We firmly believe in the medium-term India trajectory and have conviction in selected domestic cyclical themes,” says Prateek Agrawal, MD and CEO of Motilal Oswal Asset Management Company.
For investors who are unaware of Multi-Cap mutual funds, they fall under the equity mutual fund category. As per Sebi, at least 75% of the total assets in a multi-cap fund should be allocated to equity, with a minimum of 25% allocated to each large-cap, mid-cap, and small-cap stock.
The objective of multi-cap funds is to offer investors diversification across market capitalisation, thereby helping them earn decent returns by reducing risk. Individuals with a moderate risk tolerance, a minimum investment horizon of five years, and a long-term goal of wealth creation through a diversified portfolio may invest in multi-cap funds.
