Motilal Oswal AMC launches Business Cycle Fund NFO: NAV

Motilal Oswal Business Cycle Fund: Key Details you need to Know

Motilal Oswal AMC Limited (MOAMC) by Motilal Oswal Mutual Fund launches its “Motilal Oswal Business Cycle Fund”. It is an open-ended equity scheme that follows business cycle-based investing sectoral/theme. The NFO date is from August 07 to August 21, 2024, with an NFO price of Rs.500 and in multiples of Rs.1 having an Exit Load of 1% if units are redeemed within 3 months.

After Edelweiss Business Cycle Fund generated more than Rs.1800 crore through its NFO last month, now Motilal Oswal Business Cycle Fund is ready to gain the same trust from the investors.

To learn about the Fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.

 

Motilal Oswal Business Cycle Fund NFO Details

The scheme is suitable for investors who want to achieve capital appreciation over a long time and seeking to invest in Equity and equity-related instruments selected on the basis of business cycles theme. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met.

The scheme will invest 80-100% of its units in Equity and Equity-related instruments of business cycle themes, 0-20% in Equity and Equity-related instruments of companies other than business cycle themes, 0-20% in debt and money market instruments (including cash and cash equivalents), 0-10% in REIT and InvIT units, and 0-5% in mutual fund units.

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Fund Overview

The minimum subscription amount is set at Rs.500 and in multiples of Rs.1 thereof.

Start Date	07 August 2024
End Date	21 August 2024
Allotment Date / Subscription Date	Within 5 business days from the end date of the NFO.
VRO rating	-
Expense ratio	Nil
Exit load	1% if redeemed within 3 months
AUM	Rs.66,452.27 Cr (as of 30 Jun 2024)
Lock-in	NA
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	Nifty 500 TRI.
Min. Investment	Rs.500 and in multiple of Rs.1
Risk	Very High
Short-term capital gains (STCG)	For less than 1 year, a 20% tax is applicable.
Long-term capital gains (LTCG)	For more than 1 year, a 12.50% Tax is applicable above the gain of Rs.1.25 lac.

 

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then within 5 business days from the date of allotment; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Motilal Oswal Business Cycle Fund” or simply click the ‘banner’ below

 

 

The Objective of The Fund

The Scheme intends to Invest in capital appreciation over a long time and seeks to invest in equity-related instruments selected based on business cycles theme. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)
Equity and Equity-related instruments of business cycle themes	80	100
Equity and Equity-related instruments of companies other than business cycle themes	0	20
Debt and money market instruments (including cash and cash equivalents)	0	20
REITs & InvITs Units	0	10
Mutual Fund Units	0	5

 

Peers of Motilal Oswal Business Cycle Fund

Scheme	1Y Return	AUM (Rs.)
Quant Infrastructure Fund IDCW Direct Plan Payout	68.02%	3881.58 Cr.
Bank of India Manufacturing and Infrastructure Fund Direct Plan Regular IDCW Payout	57.35%	404.9 Cr.
Bank of India Manufacturing and Infrastructure Fund Direct Plan Quarterly IDCW Payout	57.38%	404.9 Cr.

Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available.

 

Risk Factors In Such Funds

• The Scheme's NAV will change in response to stock market fluctuations. The Investor could lose capital over a short or long period of time due to fluctuations in the Scheme's NAV as a result of variables such as company performance.

• Investing in a thematic fund is predicated on the idea that the fund will look to invest in businesses that are part of a group of sectors that gain from the theme. This will restrict the Fund's capacity to make investments in certain other sectors. Due to the thematic nature of the Fund, concentration risk is anticipated to be significant since it will be impacted by the risks related to the Business Cycle theme.

• Investments in REITs and InvITs may be subject to reinvestment risk since the Trusts may repatriate cash in the form of unit buybacks or IDCW payouts, among other things. As a result, the profits may be invested in assets that provide lesser yields.

• The investment in the scheme could increase or decrease based on a variety of variables and pressures affecting the debt and capital markets, as well as changes in the interest rate, price, and value of the securities in which the scheme invests.

 

Past Performance of Equity / Thematic Funds

Equity / Thematic Funds	NAV (Rs.)	Annualised Return	Return / Risk
ICICI Prudential Business Cycle Fund-Regular Plan-Growth	22.64	42.04%	Very High Risk
TATA Business Cycle Fund	20.51	46.4%	Very High Risk
Quant Business Cycle Fund Regular-Growth	18.32	61.89%	Very High Risk

 

 

Motilal Oswal Business Cycle Fund NFO-Who Can Invest?

This Fund is ideal for those who want to achieve capital appreciation over a long time and seeking to invest in Equity and equity-related instruments selected based on the business cycles theme.

 

Motilal Oswal Business Cycle Fund NFO-Growth Fund Managers

• Ajay Khandelwal 

• Niket Shah 

• Santosh Singh 

• Atul Mehra

• Rakesh Shetty

• Mr. Sunil Sawant
  
  

Conclusion

The Scheme has a very high risk. The Scheme is for investors who desire to invest in capital appreciation over a long time and seek to invest in Equity and Equity-related instruments of business-related themes. Always assess your Financial Goals, Risk tolerance, time horizon, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.