Motilal Oswal Business Cycle Fund: Changes You Should Know About Its Exit Load Structure

The Motilal Oswal Business Cycle Fund, a thematic mutual fund, has been making headlines for its stellar performance. Launched on August 27, 2024, this fund has outperformed its benchmark and category average by significant margins, making it a standout performer in the mutual fund industry.

• Net Asset Value (NAV): Rs 12.01 (as of November 26, 2024)
• Returns in the Last Month: 7.50% compared to:
  • Category Average: 0.79%
  • Benchmark (Nifty 500 TRI): 0.34%
• Returns Since Launch: 20.1%

This impressive performance has solidified its position as a reliable investment option for long-term capital appreciation.

Fund Objective: Riding Business Cycles for Growth

The Motilal Oswal Business Cycle Fund primarily aims for long-term capital appreciation. It achieves this by strategically investing in equity and equity-related instruments of companies, focusing on sector and stock allocation at different stages of business cycles. This unique thematic approach allows the fund to adapt to varying market conditions, delivering consistent growth.

Key Metrics and Features

1. Assets Under Management (AUM): Rs 1,135.85 crore (as of September 30, 2024)
2. Expense Ratio: 0.55% (Direct Plan, as of October 31, 2024)
3. Exit Load (Revised):
   • Current Exit Load: 1% if redeemed within 3 months.
   • Revised Exit Load: 1% if redeemed within 1 year (effective December 2, 2024).
4. Minimum Investment: Rs 500 (for both lump sum and SIP investments).

Changes in Exit Load Structure

Motilal Oswal Mutual Fund has announced a significant revision in the exit load structure for the Business Cycle Fund. The exit load, which was previously 1% for redemption within 3 months, will now be applicable for redemption within 1 year, starting December 2, 2024.

This change is aimed at encouraging long-term investments, aligning with the fund’s goal of benefiting from the full cycle of business growth.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.