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Motilal Oswal Asset Management Company (MOAMC) announces the launch of its latest investment offering, the 'Motilal Oswal Small Cap Fund.' This open-ended equity scheme is strategically designed to provide investors with a unique opportunity to tap into the potential of small-cap segment.

MOAMC is launching an active fund after a gap of 7 years.

Key Fund Details:

Nature: Open-ended equity scheme

Investment Objective: Capital appreciation through predominantly investing in small-cap stocks

NFO Period: December 5, 2023 to December 19, 2023

Portfolio Strategy:

The fund aims to maintain a well-balanced portfolio with a minimum 65% exposure to small-cap stocks, complemented by a thoughtful allocation to large-cap stocks for tactical and liquidity purposes.

Ideal Investor Profile:

Tailored for investors seeking long-term capital growth, the Motilal Oswal Small Cap Fund is ideal for those with an investment horizon of 5-7 years. The fund's performance will be benchmarked against Nifty Small cap 250 TRI.

Mr. Navin Agarwal, MD & CEO, MOAMC, highlighting MOAMC's robust small-cap expertise, Mr. Agarwal notes the company's significant 22% investment in this segment, showcasing a rich history of wealth creation.

The financial landscape is continually evolving providing various investment opportunities to investors. We are committed to staying ahead of the curve and delivering innovative solutions. Our previous ventures into active funds have demonstrated our ability to navigate markets effectively, and with the Motilal Oswal Small Cap Fund, we are poised to continue this legacy.”

Mr. Prateek Agrawal, Executive Director, Motilal Oswal AMC Emphasising a 'High Quality High Growth' approach, Mr. Agrawal underscores the fund's commitment to valuation-conscious investing, targeting companies with strong fundamentals. He states, “At Motilal Oswal, we believe in the power of active management to uncover value and capitalise on emerging opportunities, which have opened up due to India’s growing economy. The Motilal Oswal Small Cap Fund is not just an addition to our product suite, it is a reflection of our strategic vision and expertise in small-cap investments. We look forward to empowering our investors with the new opportunities in capital markets."

Mr. Ajay Khandelwal, Fund Manager, Motilal Oswal AMC, who will manage this fund said, “In the last 2-3 years, we've witnessed a remarkable surge in small-cap fund flows, and this trend indicates a structural shift in investor preferences. Small caps, with their agility and growth potential, have become a focal point for discerning investors looking beyond conventional avenues. The Motilal Oswal Small Cap Fund is crafted with a meticulous approach, seeking out companies with visionary leadership, strong execution capabilities, and a commitment to corporate governance."

Small Cap Funds offer the potential for high earnings growth, evidenced by a 38X increase in the market cap of the largest small-cap companies over the past 20 years. With approximately 537 companies having a market cap above 2,000 Cr, the small-cap space provides a fertile ground for alpha generation. Further, the Small cap earnings growth has compounded by 49% in the last 3 years, contributing to reduced volatility and healthier balance sheets.

Fund Management Team:

The Motilal Oswal Small Cap Fund will be managed by Mr Ajay Khandelwal.

This fund will be co-managed by Mr. Niket Shah for the equity component, Mr. Rakesh Shetty for the debt component, and Mr. Ankush Sood for the international equity component.

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