Motilal Oswal Asset Management Co. Ltd has launched a new scheme that aims to rebalance debt and equity: Motilal Oswal MOSt Focused Dynamic Equity Fund (MDEF).
The fund house has devised an index in-house (but validated and maintained by the India Index Services Ltd; a National Stock Exchange’s subsidiary) that takes into account Nifty 50 index’s Price-Earnings ratio, Price to Book ratio and Dividend Yield. A lower value of this index (called Motilal Oswal Value Index or MOVI) indicates that the market valuations are low and therefore attractive. The fund has already decided its equity and debt exposure at various MOVI levels. Based on this matrix, MDEF will invest in equities and debt, accordingly. In addition to buying equity shares, MDEF will take derivate exposures to a limited extent, to hedge its positions.
