NFO Alert: Motilal Oswal Mutual Fund launches innovation opportunities fund

Motilal Oswal Mutual Fund has announced the launch of Motilal Oswal Innovation Opportunities, an open-ended equity scheme following innovation themes.

The new fund offer or NFO of the scheme will open for subscription on January 29 and will close on February 29. The scheme will reopen for continuous sale and repurchase on February 24.

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The investment objective of the scheme is to achieve long term capital appreciation by predominantly investing in equity and equity related instruments of companies that will benefit from the adoption of innovative strategies or following the innovation theme.

The scheme will be benchmarked against Nifty 500 Total Return Index and will be managed by Niket Shah, Atul Mehra, Rakesh Shetty, and Sunil Sawant.

The scheme will offer regular and direct plans both with IDCW and growth options. An exit load of 1% will be applicable, if redeemed within 90 days from the day of allotment. The exit load will be nil, if redeemed after 90 days from the date of allotment.

The minimum application amount for lumpsum investment is Rs 500 and in multiple of Re 1 thereafter.For monthly SIP, the minimum amount is Rs 500 and in multiple of Re 1 thereafter with minimum 12 instalments.

The scheme will allocate 80-100% in equity and equity related instruments of companies that will benefit from the adoption of innovative strategies or following the innovation theme, 0-20% in other equity and equity related instruments, 0-20% in debt and money market instruments (including cash and cash equivalents), liquid and debt schemes of mutual fund, and 0-10% in units of REITs and InvITS.

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The scheme aims to generate returns by predominantly investing in stocks of companies that will benefit from the adoption of innovative strategies or following the innovation theme. The fund will target companies categorized as Innovators (developing new products, services, or technologies), Enablers (providing tools or infrastructure for innovation), and Adaptors (adopting new technologies or strategies to enhance competitiveness). The Fund will focus on firms that drive market share growth through research and development (R&D) and patent development, benefiting from technological advancements.

The portfolio will essentially follow MOAMC’s QGLP philosophy – i.e. invest in Quality businesses with reasonable Growth potential and with sufficient Longevity of that growth potential at a fair Price. The scheme shall follow an active investment style and will seek to invest in companies with a strong competitive position or economic moat, good business prospects, run by a competent management that will help them achieve good growth over the medium to long term and available at reasonable valuations.

The scheme is suitable for investors who are seeking capital appreciation over the long term and want to invest predominantly in equity or equity related investments of companies that will benefit from the adoption of innovative strategies or following the innovation theme.