Investing in high-growth companies in the non-banking sector can be rewarding and thus, new fund offers (NFOs) are beginning to attract several investors. Among the most sought-after NFOs in the country at this point are the ones being offered by Motilal Oswal.
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Recently, Motilal Oswal Mutual Fund announced the launch of two factor-based funds. The NFO opened on July 29 and is scheduled to close on August 12. The first of the two factor-based funds is Motilal Oswal S&P BSE Quality ETF & Index Fund, which aims to include “top 30 Quality stocks based on rule-based parameters”.
In a release, Motilal Oswal AMC said, “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 Large MidCap Index.”
The other factor-based fund rolled out by the company is “Motilal Oswal S&P BSE Enhanced, Value ETF & Index Fund”, which aims to include “30 value stocks that are most attractive in valuations based on rule-based parameters”. Elaborating on the value stocks, the company said, “The value stocks are identified based on low Price to Earnings, Price to Book and Price to Sales ratios.”
Things to know about the Motilal Oswal NFO
What is NFO?
A new fund offer is the first subscription offering for any new fund offered by asset management companies. It is launched in the market to raise capital from the public to buy securities like shares, government bonds etc. from the market. Mutual funds are one of the most common new fund offerings marketed by an investment company.
