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Mumbai : Motilal Oswal AMC has announced the launch of an Ethics focused PMS strategy ‘Motilal Oswal Ethical Strategy’. This marks the launch of first of its kind Ethics focused PMS Strategy.

As a concept, ethical investment follows risk sharing principle that protects parties and in turn society, from questionable social and financial practices. Also, the strategy selects businesses with low debt ratio as interest bearing transactions are limited under the ethical businesses guidelines.

This strategy draws multiple parallels with ESG Investing due to its foundation of promoting social responsibility and value creation with an additional layer of balance sheet screening and low leverage.

Motilal Oswal Ethical Strategy is for the communities and people who wish to invest into markets via only the ethical route as per their sentimental, religious or conscious beliefs. People from Jain, Muslim and other communities may consider this PMS to choose their path of equity investing.

Motilal Oswal Ethical Strategy takes investments from Rs. 50 lakhs onwards as per PMS regulatory guidelines.

Vaibhav Agrawal, Portfolio Manager, Motilal Oswal Asset Management Company Ltd. said, “Motilal Oswal AMC is the only fund house in India with a documented investment process of QGLP. In order to further bring financial inclusivity in India, funds with new investment concepts needs to be launched in the country. As a pioneer in the industry, we aim to institutionalize the concept of ethical investing in the country and thus, launched the Motilal Oswal Ethical Strategy.”

Vaibhav Agrawal further added,“The companies that indulge in the business of alcohol, Tobacco, Gambling, Gold and silver trading, banking and financials, Pork/Non veg related businesses, Advertising/Media & Entertainment/Pornography are excluded. These industries may not fall within the parameters of ethical investing for some communities and would not be appropriate investments for observant community investors.”

Key points for this strategy to be noted

- Strategy well positioned to cater to community investment guidelines eg: Muslims & Jains

-Segments, which have a negative societal opinion, are naturally avoided (tobacco, alcohol, gambling, inappropriate media etc.)

-Motilal Oswal Group’s QGLP process is the base of stock selection for this strategy.

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