Publish Date:
Motilal Oswal Mutual Fund launches – Motilal Oswal Small cap Fund
It is an open-ended equity scheme predominantly investing in small cap stocks.
Accordingly, the investment objective of the Scheme is to generate capital appreciation by investing predominantly in Small Cap stocks. However, there can be no assurance that the investment objective of the scheme will be realized.
[Read: 5 Best Small Cap Funds for 2024 - Top Performing Small Cap Mutual Funds in India]
Under normal circumstances, Motilal Oswal Small cap Fund will hold an allocation of 65% to 100% in Equity and Equity related instruments of small cap companies, 0% to 35% Equity and Equity-related Instruments of companies other than Small cap companies including foreign companies, 0% to 35% in Equity and Equity-related Instruments of companies other than Small cap companies including foreign companies and 0% to 10% in Units issued by REITs and InvITs.
As per the Scheme Information Document, Motilal Oswal Small cap Fund will invest in a portfolio of small cap equity and equity related instruments, money market instruments, cash and cash equivalents.
[Read: Want to Invest in Small cap Funds? Manage the Risk and Reward Well]
The portfolio will essentially follow MOAMC’s QGLP philosophy – i.e. invest in Quality businesses with reasonable Growth potential and with sufficient Longevity of that growth potential at a fair Price. The scheme shall follow an active investment style and will seek to invest in small cap companies with a strong competitive position or economic moat, good business prospects, run by a competent management that will help them achieve good growth over the medium to long term and available at reasonable valuations.
Motilal Oswal Smallcap Fund’s performance will be benchmarked against Nifty Smallcap 250 TRI
The scheme will be managed by Mr Ajay Khandelwal, Mr Niket Shah, Mr Rakesh and Mr Ankush Sood.
[Read: Reasons That Should Not Be the Basis for Investing in Small-Cap Funds]
The NFO opens for subscription on December 05, 2023 and closes on December 19, 2023. The schemes will reopen for continuous sale and repurchase Within five business days of allotment date.
The minimum subscription amount is Rs 500/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).