Motilal Oswal Large Cap Fund Launched

An open-ended equity scheme predominantly investing in large-cap stocks

Navin Agarwal

FinTech BizNews Service

Mumbai, January 15, 2024: Motilal Oswal Asset Management Company (MOAMC) announces the launch of its latest investment offering, the 'Motilal Oswal Large Cap Fund’. This open-ended equity scheme is strategically designed to provide investors with a unique opportunity to tap into the potential of the large-cap segment.

Key Fund Details:

Nature: An open-ended equity scheme predominantly investing in large-cap stocks

Investment Objective: To achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of large-cap companies. However, there can be no assurance that the investment objective of the scheme will be realized.

NFO Period: 17th January to 31st January 2024

Portfolio Strategy: The fund aims to maintain a strategically balanced portfolio with exposure of a minimum of 80% in the Nifty 100 large-cap stocks, complemented by a thoughtful 20% allocation in small-cap/Mid/IPO/Pre-IPO/Foreign Equity.

Ideal Investor Profile: The product is designed for investors looking for long-term capital growth. It is ideal for investors wanting to invest in equity and equity related instruments of large-cap stocks. The fund's performance will be benchmarked against Nifty 100 TRI.

Why choose MO Large Cap Fund: The fund would be based on a unique "ACE" construct, featuring a High Active Share (maintaining 60-80% against peers' <50%), High Conviction & Focused Portfolio (Aiming to have a focused portfolio of 30 stocks, distinguishing from peers with an average of 58), and an Equi-Weighted Portfolio Strategy (deviating from index & peers by maintaining around 10% allocation to top 3 holdings). The goal is to provide a distinctive positioning,  steering clear of market norms, and creating a diversified portfolio for consistent returns. The above construct is based upon the current portfolio construct.

Mr. Navin Agarwal, MD & CEO, Motilal Oswal AMC said, “Our midcap fund has consistently garnered a positive response from investors over the years. Following the successful launch of our Small-Cap fund last month and now introducing the Large-Cap fund, we aim to diversify our offerings across various market capitalisations.”

“Given the improving strength in our economy and businesses, there's a potential resurgence of Foreign Institutional Investors (FIIs) returning to India. Historically, a significant portion of FIIs' allocation gravitates towards Large Cap. Considering the currently attractive valuations in the Large-cap segment, we believe it's an opportune moment to step into the large-cap space to capitalise on the potential upside,” added Navin Agarwal.

Large-caps have consistently performed over the years by being in the top 2 quartiles for 9 out of 11 years.

Mr. Atul Mehra, Equity Fund Manager at MOAMC said, “Indian Large Caps often mirror mid and small caps in the Global context, presenting a growth canvas for savvy investors. Today, Indian Large Caps boast the apex of quality with soaring RoE, robust PAT, and impressive Sales figures. Furthermore, their valuations stand at a modest with trailing PE at 21.9 (Source: Nifty Indices and MOAMC internal research), unveiling an ideal blend of quality and growth potential. Our new fund is an invitation to investors to A-C-E their game – leveraging our unique framework of ‘ACE’ – High ‘Active’ Share (~60-80%), High ‘Conviction’ (aimed at ~30 stock portfolio) 3) ‘Equal’ weight portfolio. This strategy positions us uniquely against the benchmark, promising a dynamic and actively managed portfolio that navigates market complexities with finesse. We're excited to offer investors an exceptional avenue for high-quality, high-growth opportunities in the Indian market.”

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