Motilal Oswal AMC launches new open ended, Motilal Oswal MOSt Focused Dynamic Equity Fund. The new fund opens on September 6 and closes on September 20, 2016, says a press release issued by the company.
Speaking on the launch of Motilal Oswal MOSt Focused Dynamic Equity Fund, Aashish Somaiyaa, MD & CEO of Motilal AMC said, “While over long periods of time equities do deliver in line with corporate earnings, it’s a known fact that the volatility in share prices is way higher than volatility of earnings themselves. This volatility in share prices results in emotional response of greed in rising markets and fear in falling markets. Mostly these responses are way more exaggerated on upside as well as downside and when evaluated in hindsight once data plays out; one rues that they were disproportionate to changes in corporate earnings. A fund like dynamic equity fund enables the AMC to focus on its core philosophy of buying high quality stocks and holding on to them, while the decision of booking profits or increasing exposure in those very holdings is left to an unemotional market valuation indicator which has no dependence on vagaries of human psychology. Hence, we are confident of capturing the best opportunities for our investors.”
The market valuations for dynamic allocation will be indicated by the proprietary Motilal Oswal Value Index (MOVI) which is calculated taking into account Price/Earnings, Price/Book and Dividend yield of Nifty 50 Index. The MOVI helps gauge attractiveness of the equity market.
Taher Badshah (equity) and Abhiroop Mukherjee (debt) are the fund managers of the fund.