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Motilal Oswal AMC has launched a new PMS ‘Motilal Oswal Ethical Strategy’, an ethical and shariah complaint PMS.
The PMS will not invest in the companies which are engaged in liquor, gambling, tobacco, entertainment, banking and financials and so on. The PMS will follow risk sharing principle that protects parties from questionable social and financial practices. Also, the strategy selects businesses with low debt ratio as interest bearing transactions are limited under the ethical business’ guidelines.
The fund will target investors from Jain, Muslim and other communities.
In a press release, Vaibhav Agrawal, Portfolio Manager, Motilal Oswal AMC said, “The companies that indulge in the business of alcohol, tobacco, gambling, gold and silver trading, banking and financials, pork/non veg related businesses, advertising/media & entertainment are excluded. These industries may not fall within the parameters of ethical investing for some communities and would not be appropriate investments for observant community investors.”