Motilal Oswal AMC Launches Motilal Oswal Manufacturing Fund
The NFO open from 19th July 2024 to 2nd August 2024
Mumbai, 18 July, 2024: Motilal Oswal Asset Management Company (MOAMC) today announced the launch of its latest new fund offer “Motilal Oswal Manufacturing Fund”. The new thematic fund by MOAMC is an open-ended equity scheme following manufacturing theme.
Key Fund Details:
NFO Period: 19th July 2024 to 2nd August 2024
Investment Objective: To achieve long term capital appreciation by predominantly investing in equity and equity related instruments of companies engaged in the manufacturing activity.
Benchmark: Nifty India Manufacturing Total Return Index
Portfolio Strategy: The fund will focus on investing in a unique hi-conviction focused manufacturing portfolio (upto ~35stocks) of House identified high growth themes which shall benefit from current capex cycle. The fund aims to maintain a well-balanced portfolio with 80% to 100% exposure in each of manufacturing stocks.
Investor Profile: Tailored for investors who are seeking capital appreciation over long-term and are looking to capitalise by invest in a unique hi-conviction focussed manufacturing portfolio.
Mr. Prateek Agrawal, MD and CEO of Motilal Oswal Asset Management Company said, “The evolving geopolitical scenario and domestic economic strength strategically positions India as an emerging manufacturing hub in the world. The sector is expected to gain interest and witness an upward mobility of investments from the international investors increasing exports to 4.5% by 2031, up from approximately 1.5 percent at present.
Government has also set an ambitious target of 25% of the Indian economic output for manufacturing by 2025. When looked at India’s lower manufacturing wage cost compared to other SEA nations, along with a labour productivity growth of 6.2% compared to China’s 4.2% for FY24, it indicates that India has an advantage over other nations in terms of increased production. With China+1 theme playing out, India is expected to benefit from the shift of production outside China.”
Mr. Niket Shah, CIO, Motilal Oswal MF said, “Manufacturing focused funds could add diversification to an investor’s portfolio. There’s a multitude of sectors which offer exponential opportunity to the country’s exports with EMS, Chemicals and Defence leading the charge. Our government has set out a target of over INR500bn in exports by end of this decade supported through indigenization and policy aid. Our country poses a smooth growth trajectory as we are witnessing a macro goldilocks event (Expected softening inflation, expected rate cuts, CAD Surplus and healthy forex reserves).
Hence, as part of our strategy we will be investing in the uniquely positioned high conviction house identified high growth manufacturing themes which we believe might benefit from current cycle, also offering investors an opportunity to be a part of the India’s manufacturing growth story”.
