Motilal Oswal NFO Alert: To achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments through a contrarian strategy, Motilal Oswal Mutual Fund (MOMF) has announced the launch of its new fund offer (NFO), “Motilal Oswal Contra Fund”, an open-ended equity scheme following a contrarian investment strategy.
Motilal Oswal Mutual Fund filing.
If you are wondering what a contrarian investment strategy is, here’s what it means:
Motilal Oswal NFO Alert: What is a contrarian investment strategy?
A contrarian strategy is an investing style that typically invests against prevailing market trends. Contrarian investing seeks to identify investment opportunities in companies that are currently out of market favour or undervalued temporarily, yet exhibit strong fundamentals and a turnaround potential over the long term.
By adopting a long-term investment horizon over a complete market cycle, a contrarian approach allows investors to take a differentiated market exposure, benefiting from market inefficiencies such as price-value dislocations, while enabling portfolio diversification.
The minimum application amount during the NFO and on a continuous basis is Rs 500 for lump sum investments, with additional investments allowed in multiples of Rs 1 thereafter.
The additional application amount is also Rs 500 and in multiples of Rs 1 thereafter. An exit load of 1 per cent will be charged if the units are redeemed within 365 days from the date of allotment, while no exit load will apply if redeemed after 365 days.
Motilal Oswal Contra Fund NFO Launch: Exit load details
The exit load is applicable to switches among the schemes of MOMF; however, no load will be charged for switching between options within the same scheme or among plans within the same scheme.
Motilal Oswal Contra Fund: Details of fund managers
The Fund will be managed by Varun Sharma (Fund Manager – For Equity component), Bhalchandra Shinde (Fund Manager – Equity Component), Ankit Agarwal (Fund Manager – For Equity Component), Rakesh Shetty (Fund Manager – For Debt Component), and Swapnil Mayekar (Fund Manager – For Overseas Component).
Commenting on the launch, Prateek Agrawal said market volatility and behavioural biases can create opportunities for contrarian investing over the long term.
Fund manager Bhalchandra Shinde said the fund would focus on a portfolio of 30-35 stocks with operating cash flows, valuations, and turnaround potential identified through research-driven analysis.
A contra fund is a type of equity mutual fund that invests against prevailing market trends, purchasing stocks that are currently out of favour, underperforming, or undervalued.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
