Motilal Oswal Files Draft for Manufacturing Fund

A surge in Sectoral and Thematic Fund Inflows

The Association of Mutual Funds of India (AMFI) released data on June 10, revealing a significant inflow of Rs 19,213 crore in the sectoral and thematic fund category for May. This surge was primarily driven by the new fund offer (NFO) of HDFC Manufacturing Fund, which played a pivotal role in the increased inflows.

Launched in May, the HDFC Manufacturing Fund attracted Rs 9,563 crore from investors during its NFO period. The NFO commenced on April 26 and concluded on May 10. The fund’s investment strategy focuses on maintaining a core portfolio with at least 80% investment in stocks representing diverse sectors under the manufacturing theme.

Motilal Oswal Follows the Trend

Following the trend set by HDFC, Motilal Oswal has filed a draft with SEBI for the Motilal Oswal Manufacturing Fund, an open-ended equity scheme adhering to the manufacturing theme. This scheme aims to cater to investors seeking long-term capital appreciation through investments in equity and equity-related instruments of companies engaged in the manufacturing sector.

Investment Strategy and Objectives

The Motilal Oswal Manufacturing Fund is suitable for investors aiming for:

1. Capital appreciation over the long term.
2. Investments in equity and equity-related instruments of companies engaged in the manufacturing theme.

The scheme’s benchmark index is the Nifty India Manufacturing TRI. It falls under the Thematic Fund category with the primary investment objective to achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of companies engaged in manufacturing activities. However, there is no assurance that the investment objective will be realized.

Plans and Options

The Motilal Oswal Manufacturing Fund offers two plans:

1. Regular Plan: For investors who purchase/subscribe units through any AMFI Registered Distributor/ARN Holder.
2. Direct Plan: For investors who purchase/subscribe units directly with the Fund, not routed through a Distributor.

Both plans offer options for IDCW* (IDCW Payout and IDCW Reinvestment) and Growth.

Minimum Application Amount

• During NFO: Rs. 500 and in multiples of Re. 1 thereafter.
• For Lumpsum: Rs. 500 and in multiples of Re. 1 thereafter.
• Minimum Additional Purchase: Rs. 500 and in multiples of Re. 1 thereafter.

Asset Allocation Strategy

The scheme’s asset allocation is as follows:

Fund Management Team

The fund will be managed by a team of experienced professionals including Ajay Khandelwal, Niket Shah, Santosh Singh, Atule Mehra, Rakesh Shetty (Debt Component), and Ankush Sood (Foreign Securities).

Conclusion

The sectoral and thematic fund category has seen a remarkable inflow, largely influenced by the successful launch of the HDFC Manufacturing Fund. As Motilal Oswal follows suit with its manufacturing-themed fund, investors have promising options to explore for long-term capital appreciation through targeted investments in the manufacturing sector.

Dreaming of financial freedom? Use our Mutual Fund SIP Calculator to see how regular investments can add up to grow wealth. Take the first step towards your goals. Calculate now!

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.