Motilal Oswal Files Draft for Multi Factor Fund of Funds with SEBI

Fund Name and Category

Motilal Oswal has recently filed a draft with SEBI for its Motilal Oswal Multi Factor Fund of Funds. This is an open-ended fund of funds scheme, which invests predominantly in units of factor-based ETFs and index funds.

Objective of the Fund

The primary investment objective of the fund is to generate returns by offering a multi-factor investment solution. It will focus on exposure to different factors such as size, low volatility, momentum, quality, value, and more through ETF and index funds. However, there are no assurances or guarantees regarding the achievement of these objectives.

Fund Manager

The fund is managed by two experienced professionals:

• Rouhak Shah: A finance expert with over 15 years of experience in equity dealing and market intelligence. He manages multiple funds at Motilal Oswal, including the Asset Allocation Fund of Funds.
• Rakesh Shetty: An experienced debt fund manager, who handles various debt-related schemes and brings over 15 years of expertise in managing both equity and debt segments.

Benchmark Indices

The benchmark for this scheme is the Nifty 200 Total Return Index. This is a suitable benchmark because the fund aims to invest in factor-based ETFs that mimic the performance of large-cap Indian equities, aligning with the index’s objectives.

Asset Allocation

The fund will allocate:

• 95-100% of its assets to units of factor-based ETFs and index funds.
• 0-5% to liquid schemes and money market instruments for liquidity management.

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Conclusion

Motilal Oswal’s Multi Factor Fund of Funds offers a diversified and factor-based approach to investing. With experienced managers at the helm and a well-structured asset allocation, this fund is a promising option for investors looking for long-term capital appreciation through exposure to multiple factors in equity markets.

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.