| Motilal Oswal Asset Management Company has launched the Motilal Oswal Quality Fund, an open-ended equity scheme following a quality factor-based investment approach. The New Fund Offer opened on 28 August 2026 and will close on 11 September 2026.
The scheme aims to generate long-term capital appreciation by predominantly investing in equity and equity-related instruments selected using a quality factor-based approach. The fund will focus on businesses with strong and sustainable quality characteristics and assess their growth prospects, business fundamentals, competitive advantages and valuations before selecting securities.
The fund house said its quality framework focuses on companies with high return on equity and return on capital employed, low leverage, consistent earnings across cycles, strong free cash flows, capital discipline, durable competitive advantages and sound corporate governance. The proposed portfolio is expected to comprise around 20-35 stocks.
The fund's investible universe comprises the top 1,000 companies by market capitalisation. The portfolio construction process progressively narrows this universe to around 450-550 stocks after the neglect screen, 250-350 after the quality filter and 80-90 after the growth overlay, before selecting 20-35 stocks for the final portfolio.
The scheme will be benchmarked against the Nifty 200 Quality 30 Total Return Index. The Quality Index delivered positive returns in 97.8% of rolling three-year periods between FY06 and FY26, indicating resilience across different economic cycles.
The fund is classified as an equity thematic-factor-based fund and carries a very high risk rating. The minimum investment is Rs 500 and the scheme is available through regular and direct plans, with growth and IDCW options.
The fund will be managed by Ankit Agarwal, Ajay Khandelwal and Varun Sharma for the equity component, Rakesh Shetty for the debt component and Swapnil Mayekar for overseas securities. The scheme will be actively managed and may use equity and equity-related derivatives for hedging and portfolio risk management, subject to applicable limits.
The fund has an exit load of 1% if units are redeemed on or before 90 days from the date of allotment, while no exit load will apply after 90 days. The scheme is open-ended and does not have a lock-in period.
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