Motilal Oswal Mutual Fund launches index funds and ETFs tracking Quality and Value factors
- Motilal Oswal S&P BSE Quality ETF and Motilal Oswal S&P BSE Quality Index Fund (An open-ended scheme replicating/tracking the performance of the S&P BSE Quality Index)
- Motilal Oswal S&P BSE Enhanced Value ETF and Motilal Oswal S&P BSE Enhanced Value Index Fund (An open-ended scheme replicating/tracking the performance of the S&P BSE Enhanced Value Index)
Mumbai, 28 July 2022: Motilal Oswal Asset Management Company (MOAMC) has announced the launch of factor-based funds, i.e. Motilal Oswal S&P BSE Quality ETF & Motilal Oswal S&P BSE Quality Index Fund and Motilal Oswal S&P BSE Enhanced Value ETF & Motilal Oswal S&P BSE Enhanced Value Index Fund. The NFO opens on 29 July and closes on 12 August 2022.
Motilal Oswal S&P BSE Quality ETF and Motilal Oswal S&P BSE Quality Index Fund
The Motilal Oswal S&P BSE Quality ETF & Index Fund are single factor-based investment strategies that aim to include the top 30 'Quality' stocks based on rule-based parameters. These companies tend to have durable business models and sustainable competitive advantages. The index constituents are selected from the universe of the S&P BSE LargeMidCap Index. The Quality stocks are identified based on companies with high earnings, a better quality of earnings and lower debt. Over a long time horizon, it has been observed that such high-quality stocks tend to outperform low-quality stocks, as they are better equipped to weather adverse economic conditions.
Motilal Oswal S&P BSE Enhanced Value ETF and Motilal Oswal S&P BSE Enhanced Value Index Fund
The Motilal Oswal S&P BSE Enhanced, Value ETF & Index Fund are single factor-based investment strategies that aim to include 30 'Value' stocks that are most attractive in valuations based on rule-based parameters. The index constituents are selected from the universe of the S&P BSE LargeMidCap Index. The Value stocks are identified based on low Price to Earnings, Price to Book and Price to Sales ratios. Value investing is one of the oldest and best-known styles of investing. It is based on the foundation that "LOW value stocks" stocks, i.e. stocks with relatively attractive valuations, tend to outperform "HIGH value stocks" stocks over the long-term.
"With an objective to cater the evolving needs of the investors, we have introduced ETFs & index funds in the factor investing segment. These new funds are based on the Quality and Value factors. We aspire to build a unique brand positing by establishing ourselves as a fund house to drive the factor investing category in India. With the launch of both these funds, it will complete our bouquet of single-factor based passive offerings", said Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company Ltd.
Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company Ltd said, "These single factor-based funds are suitable for investors looking to diversify their portfolio & gain exposure to the Quality or Value factor. The Quality funds aim to invest in companies that are generally resilient to setbacks & perform well in various market conditions, especially during bear and recovery markets. At the same time, the Value funds aim to invest in companies that are trading at relatively attractive valuations based on parameters like low Price to Earnings, Price to Book and Price to Sales ratios. This strategy has historically worked well during times of market recovery."
During NFO of both these funds, investors can invest a minimum of Rs. 500/- and in multiples of Re. 1/- thereafter. On an ongoing basis, investors can purchase/redeem units of the scheme through a financial advisor or by log-in in to www.motilaloswalmf.com.
Please note: The other Funds managed by the Fund Managers can be viewed on
Disclaimer This release has been issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material fact. The Stocks (if any) mentioned herein is for explaining the concept and shall not be construed as an investment advice to any party. The information / data herein alone is not sufficient and shouldn't be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions, figures, estimates and data included in this article are as on date. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible/liable for any decision taken on the basis of this article. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
BSE Scrip Code and NSE Symbol: The scheme is proposed to be listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited post which the scrip code and symbol shall be updated post listing.
About Motilal Oswal Asset Management Company:
Motilal Oswal Group possesses legacy in equities for over 3 decades. Motilal Oswal Asset Management Company Ltd. (MOAMC) is registered with SEBI as the Investment Manager for Motilal Oswal Mutual Fund. It was incorporated on November 14, 2008. It provides Investment Management and Advisory Services to investors based within and outside India and having AIF's, Portfolio Management Services business, ETFs and Mutual Funds.
MOAMC is one of the pioneers of PMS business with over 17+ years of track-record. It is also one of the pioneers of passive funds in India through ETFs way back in 2010, Motilal Oswal Nifty 50 ETF, Motilal Oswal Midcap 100 ETF, Motilal Oswal Nasdaq 100 ETF – the only offshore ETF and have exclusive rights for Nasdaq.
MOAMC follows a unique investment philosophy, 'Buy Right; Sit Tight' which means buying quality companies at a reasonable price and Sit Tight to ride their growth cycle for a long period of time.
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