The fund opened for subscription on February 03 and closes on February 17, 2014.
Motilal Oswal Mutual Fund has launched its open ended equity fund called Motilal Oswal MOSt Focused Midcap 30 Fund. The NFO of the fund is now open for subscription and will close on February 17, 2014.
Aashish Somaiyaa, CEO, Motilal Oswal AMC told Cafemutual that the fund house is heading towards completing its range of product suite in the equity category. This is their second equity fund with plans to launch one more equity fund. The fund house is currently managing AUM of Rs 434 crore as on December 2013.
Sharing the rationale behind the launching this fund, Somaiyaa said, “If you see the valuations in mid-cap space, a lot of companies having sound management and greater potential are trading at a bargain price. Valuations of many mid-cap companies are very low at the moment. Typically midcaps are more leveraged to any economic recovery - hence we believe this underperformance can potentially reverse in the medium term. Also, we believe in ‘buy right and sit tight’ strategy i.e. if you invest in good quality stocks you need not worry of performance.”
The fund house is looking to collect Rs. 100 crore during the NFO period.
In a presentation, Siddharth Bothra, Vice President, Motilal Oswal MF said, “The fund aims at targeting the "Sweet spot of Indian equity markets", which is replete with ‘emergence to endurance’ investment ideas. Motilal Oswal's recent Wealth Creation study showed that the best wealth creation opportunities historically have been companies that moved from the emergence phase to the endurance phase: i.e. companies that successfully made the transition from midcaps to large caps - and specifically the period when they made this transition. Having identified a good company, maximum money is made in the journey from mid-cap to large-cap or one can say in the period between entry into CNX MidCap and transition into Nifty.”
The AMC says that the fund will follow a bottom up strategy in stock picking based on quality of business and management, growth of earnings and sustained RoE and longevity of competitive advantage or economic moat of the business. It will buy stocks at lower than estimated fair price. It will also follow buy and hold strategy. As name suggest, the scheme will aim at building a 30 stock portfolio based on extensive research.
The fund will be benchmarked against CNX Midcap Index. The scheme will charge an exit load of 2% if redeemed within one year. No exit load will be charged thereafter. The minimum application amount would be Rs 5000. Tahir Badshah (equity) and Abhiroop Mukherjee (Debt) will co-manage the fund.
