Motilal Oswal Mutual Fund has launched the Motilal Oswal Multi Asset-Omni Fund of Funds, an open-ended scheme that invests in equity-oriented schemes, debt-oriented schemes, and gold and silver exchange-traded funds (ETFs).
The new fund offer (NFO) opened on October 21 and will close on November 4.
The scheme aims to generate long-term capital appreciation through a diversified portfolio of underlying funds, using an active asset allocation strategy based on macroeconomic parameters, valuations and momentum indicators.
According to the scheme information, 95% to 100% of the portfolio will be invested in units of domestic equity-oriented and debt-oriented schemes of Motilal Oswal Mutual Fund, along with gold and silver ETFs across mutual funds. Within this allocation, the scheme can invest 10% to 80% each in equity-oriented schemes, debt-oriented schemes, and gold and/or silver ETFs.
The fund’s allocation across these categories can change in response to market conditions. Equity exposure will be built through active schemes, exchange-traded funds or index funds, while the debt component can include active schemes, ETFs and index funds.
The strategy takes into account the different factors influencing each asset class. Equity markets are affected by earnings, valuations, liquidity and economic conditions, while debt markets respond to interest rates, inflation, monetary policy and credit spreads. Gold and silver exposure brings in factors such as the US dollar, real interest rates, geopolitical developments and industrial demand.
Benchmark and fund management
The scheme’s benchmark is a composite index comprising 60% Nifty 500 Total Returns Index (TRI), 5% domestic gold prices, 5% domestic silver prices and 30% Nifty Short Duration Debt Index.
The fund will be managed by Ajay Khandelwal and Bhalchandra Shinde for the equity component, Rakesh Shetty for the debt component, and Swapnil Mayekar for the overseas securities component, according to the fund house.
Ajay Khandelwal, fund manager at Motilal Oswal Asset Management Company, said the scheme would use macroeconomic conditions, valuations and momentum indicators to adjust allocations across asset classes.
Minimum investment and exit load
The minimum lump-sum investment during the NFO and on an ongoing basis is ₹500, with additional investments permitted in multiples of ₹1. The scheme also offers systematic investment plans (SIPs), with frequencies and other details specified in the scheme information document.
An exit load of 1% will apply to redemptions made on or before 90 days from the date of allotment. No exit load will apply to redemptions made after 90 days, subject to the scheme’s stated terms.
As a fund of funds, the scheme invests in other mutual fund schemes and ETFs. Investors will bear the expenses of the fund of funds in addition to the expenses of the underlying schemes.
The investment objective is to generate long-term capital appreciation, but the fund house does not guarantee that the objective will be achieved. Returns will depend on the performance of the underlying investments and the risks associated with the respective asset classes.
NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.