Motilal Oswal Manufacturing Fund NFO: Review, Date & NAV

Motilal Oswal Manufacturing Fund - NFO Overview

The Motilal Oswal Manufacturing Fund by Motilal Oswal Mutual Fund under its AMC Motilal Oswal Asset Management Company Limited is an open-ended scheme following the manufacturing theme that is a thematic scheme. The investment window is open from July 19 to August 02, 2024, with a subscription price of Rs.500 and in multiples of Rs.1 with an Exit Load of 1% if units are redeemed within 3 months.

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 of manufacturing companies. 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 enterprises with manufacturing themes, 0-20% in Equity and Equity-related instruments of companies other than manufacturing 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.

 

 

Fund Overview

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

Start Date	19 July 2024
End Date	02 August 2024
Allotment Date / Subscription Date	Min period of 3 days but not more than 15 days after the closure date of the NFO.
VRO rating	-
Expense ratio	Nil
Exit load	1% if redeemed within 3 months
AUM	66,452.27 Cr (as of 30 Jun 2024)
Lock-in	NA
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	Nifty India Manufacturing TRI.
Min. Investment	Rs.500
Risk	Very High
Short-term capital gains (STCG)	Returns taxed at 15% if you redeem before 1 year
Long-term capital gains (LTCG)	After 1 year, pay a LTCG tax of 10% on returns of Rs.1 lakh+ in a financial year

 

 

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 Manufacturing Fund” on ‘Nifty India Manufacturing TRI.’.

To Open Your Demat Account, Click Here.

 

The Objective Of The Fund

The Scheme intends to Invest in capital appreciation over a long time and seeks to invest in Equity and Equity-related instruments of manufacturing companies. 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 manufacturing companies	80	100
Equity and Equity-related instruments of companies other than manufacturing themes	0	20
Debt and Money Market Instruments	0	20
Mutual Fund Units	0	5
REITs & InvITs Units	0	10

 

Peers Of Motilal Oswal Manufacturing Fund

Scheme	1Y Return	AUM (Cr)
ICICI Pru Manufacturing Fund	65.33%	5,942.57
Kotak Manufacture in India Fund	52.32%	2,337.49
ABSL Manufacturing Equity	47.78%	1,108.36

Since this scheme is a new scheme, hence no comparable data of its performance with 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.

• The scheme's thematic character will be influenced by the risks connected with Manufacturing Sectors, hence concentration risk is predicted to be major.

• 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 Pru India Opp Fund	29.84	24.27%	Very High Risk
SBI Magnum Equity ESG Fund	220.64	16.32%	Very High Risk
Invesco India PSU Equity Fund	39.90	26.24%	Very High Risk

 

 

Motilal Oswal Manufacturing 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 of manufacturing companies.

 

Motilal Oswal Manufacturing Fund NFO - Growth Fund Managers

• Rakesh Shetty 

• Atul Mehra

• Santosh Singh

• Niket Shah

• Ajay Khandelwal
  
  

Conclusion

For investors looking to diversify their portfolios through investments in the Those who desire to attain capital appreciation over time and seek to invest in equities and Equity-related instruments covered by the Nifty India Manufacturing TRI. The goal of this NFO is to Invest in capital appreciation over a long time and seek to invest in Equity and Equity-related instruments of manufacturing companies. 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.