Motilal Oswal MF unveils business cycle-based investment scheme; key dates, minimum investment, benchmark, who should invest, other essential details to know

New Fund Offer (NFO) News: Motilal Oswal on Tuesday launched ‘Motilal Oswal Business Cycle Fund. During the new fund offer (NFO) that runs from August 7 to August 21, the minimum investment amount is Rs 500, and for SIP depending on the payment frequency.

The scheme has been launched with an objective of achieving long term capital appreciation by predominantly investing in equity and equity related instruments of companies by investing with a focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles. However, there can be no assurance that the investment objective of the scheme will be realized.

Here are the key things to know about Invesco India Manufacturing Fund: 

NFO Opening and Closing Dates: The NFO opened on August 7 and will close on August 21. 

Where will the fund invest? The fund will invest as much as 80 per cent corpus in the equity and equity-related securities. 

Benchmark: The fund will be benchmarked to Nifty 500 TRI.

Fund managers: The fund will be managed by Ajay Khandelwal, Niket Shah, Atul Mehra, Santosh Singh and Rakesh Shetty.

Why the manufacturing focus? “Indian economy is in an expansion phase which reflects in the improving corporate profitability, credit and CAPEX pick up, and government support to various sectors. This also resulted in improvement in India’s domestic demand and consumption during the past 3 years, which has led to improving business prospects, driving investments in business capacity, and improvement in household assets. With the business cycle strategy, we want to capitalize on this virtuous time for Indian corporates, by selecting businesses that are most likely to do well during this expansion phase," said Prateek Agrawal, MD and CEO of Motilal Oswal Asset Management Company.

The business cycle illustrates the natural ebb and flow of the economy, characterized by alternating periods of growth and decline, as reflected in metrics like real GDP growth and various economic indicators. Each phase of the cycle impacts companies and sectors differently, with distinct opportunities and risks emerging at various stages, he added.

What makes Motilal Oswal Business Cycle Fund special? Mr. Niket Shah, CIO, Motilal Oswal Mutual Fund said, “Our Business Cycle Fund is strategically designed to capitalize on emerging sectors and themes, allowing early exposure and maximizing the potential for wealth creation from upcoming trends. Utilizing HI-Growth & Hi-Conviction investing, the fund leverages a concentrated allocation of top house ideas across the market spectrum. Its agile approach ensures dynamic investment allocation across all market caps, adapting to evolving opportunities and optimizing returns”.

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