Motilal Oswal Asset Management Company (MOAMC), an asset management company, launched a new fund under the equity scheme - multi-cap fund- category. The new scheme is named as 'Motilal Oswal Multi Cap Fund'.

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The new fund is an open-ended equity scheme designed to capitalise on investment opportunities across large, mid, and small-cap companies. This was launched on May 28 and will close on June 11, 2024.

Start SIP with Rs 500

Motilal Oswal Multi Cap Fund allows you to start an SIP with just Rs 500 and after that, you can invest in multiples of Rs 1.

The benchmark of this fund is Nifty 500 Multicap 50:25:25 TRI. In this scheme, the exit load on redemption before 15 days is 1 per cent. Niket Shah (Multicap), Ajay Khandelwal (small cap equity), and Atul Mehra (large cap equity) are the fund managers of the scheme.

Who should choose this fund?

Investors aiming for long-term capital growth and prefer a passive approach to equity and equity-related investments can invest in the scheme. In this scheme, investors can invest in equity and equity-related securities of large, mid-cap and small-cap companies. This will help create wealth in the long run. However, there is no guarantee that the scheme will achieve the investment objective. 

Commenting on the NFO launch, Prateek Agrawal, MD and CEO of MOAMC, said, “India is currently experiencing a mini-Goldilocks moment. Indian economy, while not being immune to the global turmoil has demonstrated strong performance across key indicators with GDP expected to grow to $30 trillion by 2047. The coming few years will be the transformative phase for the Indian economy. Solid macroeconomic conditions, healthy corporate earnings, peaking of interest rates, moderate inflation print, and ongoing policy momentum will help drive this growth in equity markets too. We firmly believe in the medium-term India trajectory and have conviction in selected domestic cyclical themes."

Risk factors to consider

Multicap fund invests in large-cap, mid-cap, and small-cap funds, which provides diversification to investments and reduces risks. For this reason it becomes a dynamic option that balances risk and reward.