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Published on 29/07/2022 11:49:59 AM | Source: Motilal Oswal Asset Management

Motilal Oswal Mutual Fund launches index funds and ETFs tracking Quality and Value factors

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* Motilal Oswal S&P BSE Quality ETF and Motilal Oswal S&P BSE Quality Index Fund (An openended 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 : 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.”

 

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