New NFO Alert: Motilal Oswal Infrastructure Fund

Motilal Oswal Infrastructure Fund is an upcoming open-ended equity scheme that follows a thematic investment approach focused on India's infrastructure sector. The fund seeks to achieve long-term capital appreciation by primarily investing in equities and related instruments of companies involved in or benefiting from the growth of infrastructure, including power, roads, ports, railways, shipping, and utility services.

It offers daily liquidity, allowing subscriptions and redemptions at the applicable NAV on all business days. Redemption proceeds are to be processed within three working days, failing which a 15% p.a. penal interest applies. The fund will be benchmarked against the Nifty Infrastructure Total Return Index (TRI), ensuring a relevant performance comparison. NAVs will be disclosed daily on the AMC and AMFI websites by 11:00 p.m. The Motilal Oswal Infrastructure Fund – Direct (G) offers a thematic investment opportunity for those looking to tap into India's expanding infrastructure landscape.

Key Features of Motilal Oswal Infrastructure Fund – Direct (G)

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What are the Motilal Oswal Infrastructure Fund's Investment Objective?

To achieve long term capital appreciation by predominantly investing  in equity and equity related instruments of companies that are engaged directly or indirectly or are expected to benefit from the growth and development of the infrastructure sector in India. However, there can be no assurance that the investment objective of the Motilal Oswal Infrastructure Fund – Direct (G) will be realized.

What are the Investment Strategy of Motilal Oswal Infrastructure Fund?

• Invests primarily in companies directly or indirectly linked to India’s infrastructure growth.
• Targets sectors like airports, cement, construction, energy, metals, ports, power, telecom, and transportation.
• May include internet towers, commercial housing, oil-related sectors, and other related industries.
• Up to 20% of assets can be invested in non-infrastructure related companies.
• Follows Motilal Oswal’s QGLP philosophy: Quality, Growth, Longevity, and Price.
• Focuses on companies with economic moats and strong business models.
• Preference for firms led by competent management teams with growth potential.
• Actively managed portfolio seeking medium- to long-term capital growth.
• Aims to balance safety, liquidity, and returns while meeting investment objectives.
• May participate in stock lending to enhance returns without compromising ownership.

What are the Risk associated with Motilal Oswal Infrastructure Fund?

• Sector-specific risk as the fund is concentrated in infrastructure-related companies.
• Performance highly depends on the growth of the infrastructure sector in India.
• May experience high volatility due to limited sectoral diversification.
• NAV is exposed to daily stock market movements and macroeconomic factors.
• Equity investments are subject to price fluctuations and market volatility.
• Liquidity risk may arise due to low trading volumes or settlement issues.
• Risk of holding unlisted securities that are harder to exit during adverse conditions.
• Trustee may limit or suspend redemptions during extreme market situations.
• Interest rate risk can impact NAV, especially for long-duration debt instruments.
• Credit risk exists if issuers default on interest or principal repayments.

Motilal Oswal Infrastructure Fund is suitable for what type of Investor?

Motilal Oswal Infrastructure Fund – Direct (G) is suitable for investors who are seeking:

1. Capital appreciation over long term.
2. Investing predominantly in equity or equity related investments of companies that are engaged directly or indirectly or expected to benefit from the growth and development of the Infrastructure sector in India.