Motilal Oswal Asset Management Company (MOAMC) on Friday announced the launch of its new mutual fund (NFO), “Motilal Oswal Digital India Fund”. This fund is for investors who seek long-term capital growth by investing heavily in companies related to the digital and technology sectors.
“India’s internet economy is expected to grow rapidly, similar to what we are seeing in the US and China. With this fund, we have specifically targeted investments related to digital and technology for long-term capital growth,” said Prateek Agrawal, managing director and CEO of Motilal Oswal. Asset Management Company said.
Click here to contact us on WhatsApp
The NFO will continue until October 25, 2024.
What is Motilal Oswal Digital India Fund?
The Motilal Oswal Digital India Fund is an open-ended program targeting sectors such as technology, telecom, media, entertainment, and related industries. Investors looking to benefit from long-term capital appreciation in the digital space can consider this fund.
According to the fund’s details, its main investment objective is to generate long-term capital growth by investing in digital and technology companies, including those in software, hardware, e-commerce, telecom, media, and related fields. The fund’s benchmark is the BSE Teck Total Return Index, and it is designed for those who intend to focus on the growth potential of the digital and technology sectors.
The risk involved
The riskometer of Motilal Oswal Digital India Fund shows a “very high” level of risk. This suggests that the fund is suitable for investors who are willing to accept high levels of risk in order to gain long-term capital appreciation, particularly through investments in the digital and technology sectors.
Investment strategy and risk management
“Motilal Oswal Digital India Fund has adopted a focused portfolio strategy using the Quality, Growth, Longevity, and Price (QGLP) framework. It also incorporates various risk management strategies to maintain consistent performance. The fund managers will evaluate stock weighting, industry distribution, and strategies that differentiates making data-driven investment decisions,” the company said in a press release.
Management team of Motilal Oswal Digital India Fund
The fund management team consists of experienced professionals:
Niket Shah, Chief Investment Officer and Fund Manager
Ajay Khandelwal, Fund Manager
Santosh Singh, Fund Manager
Atul Mehra, Fund Manager
Rakesh Shetty, Fund Manager (Debt Division)
Sunil Sawant, Fund Manager (Overseas Component)
Focus on technology
“India is poised to lead the global digital infrastructure space, where e-retail penetration is expected to reach 10% by 2027. Despite this, the representation of tech stocks in the Indian market remains low compared to global standards, indicating a significant opportunity of growth,” said Niket Shah, Chief Investment Officer at Motilal Oswal AMC.
According to an internal survey conducted by MOAMC, the Indian digital ecosystem continues to grow at a rapid pace:
– About 38% of rural Indians now use digital payments.
– An average Indian spends around 6 hours and 45 minutes online every day.
– Sectors such as e-commerce, SaaS, fintech, food technology, and digital logistics have seen significant growth in recent years.
“With the pillars of India’s digital ecosystem in place, we expect traditional digital companies across industries such as e-commerce, fintech, and healthcare to grow exponentially. The digital ecosystem could reach $900-$1000 billion by 2030 , compared to its current value of $155.-175 billion,” said Varun Sharma, Vice President of MOAMC.
What you need to know about NFOs
If you are new to investing in mutual funds, understanding how a new fund offer (NFO) works can be important. NFO is the first time that a mutual fund is open for registration by investors. This is the stage when the fund starts raising money.
Here are some important points to consider:
Registration period: NFOs generally offer a subscription window of 10–15 days.
Minimum requirement: The minimum investment for NFOs can range from Rs 500 to Rs 5,000, depending on the fund.
Costs: NFOs have an expense ratio, which is the annual cost of managing the fund. Low cost ratios are considered more attractive as they can improve returns over time.
Danger: Some NFOs may have tax implications
Investment goals: Make sure the fund’s investment objectives align with your financial goals.
Fund manager expertise: It is always a good idea to check the fund manager’s experience before investing.
First published: October 11 2024 | 4:59 PM IST