Motilal Oswal Mutual Fund AMC has announced the launch of the Motilal Oswal Equity Hybrid Fund (MOFEH) through a new fund offer (NFO). The NFO for this new scheme will start on the 24th August and end on 7th September 2018. This open-ended aggressive equity-oriented hybrid fund is expected to provide long term equity-linked returns to investors by implementing the “Buy Right, Sit Tight” philosophy. Investors would also have the option to make systematic withdrawals using the Cash Flow plan which allows redemption at 7.5%, 10% or 12% of amount invested.
MOFEH will invest between 65% and 80% of its assets in equity and equity-derivatives for tax purposes, while the remaining 20% to 35% of scheme assets would be invested in various debt and money market instruments. Additionally, the Motilal Oswal Equity Hybrid Fund will also retain the flexibility to invest up to 10% of assets in units of InvITs (Infrastructure Investment Trusts) and REITs (Real Estate Investment Trusts). This aggressive equity hybrid scheme will not invest in CDS (credit default swaps), foreign securities, securitized debt, corporate debt repo and corporate reverse repo.
This new equity hybrid scheme would be benchmarked against the CRISIL Hybrid 35+65 – Aggressive TRI Index. This index is ideally suited as the scheme’s benchmark as it tracks a portfolio comprising the S&P BSE 200 TR (65%) and CRISIL Composite Bond Fund Index (35%). The 3 year and 5 year returns of this index have been recorded at 10.94% and 16.29% as of 1st August 2018.
This new scheme will be managed by Siddharth Bothra who also manages/co-manages other leading schemes such as the Motilal Oswal Focused 25 Fund, Motilal Oswal Long Term Equity Fund and Motilal Oswal Multicap 35 Fund. Among this the Motilal Oswal Focused 25 Fund is among the top performers in the large cap equity funds category with 1 year, 3 year and 5 year returns of 7.57%, 9.03% and 20.28% as of 31st July 2018.
Key Details of MOFEH NFO
|Minimum Subscription||Rs. 5000|
|Benchmark||CRISIL Hybrid 35+65 – Aggressive TRI Index|
|Fund Manager||Siddhartha Bothra|
|NFO Period||24th August to 7st September|
By Abhishek Chakravarti | Aug 21, 2018