Investment Objective
The investment objective of Motilal Oswal Small Cap Fund is to provide capital appreciation by investing primarily in small cap stocks.
Investment Strategies
- Motilal Oswal Small Cap Fund allocates at least 65% of its portfolio in small cap companies and the rest in other companies. Its investment in large cap companies are only for liquidity and tactical purpose.
- The fund emphasizes on valuations during the stock selection purpose, aims to manage drawdowns and avoid businesses with highly leveraged balance sheets.
- It seeks to maintain an actively managed high conviction portfolio, which is hi-quality, hi-growth and uniquely positioned in the industry.
- The fund prefers companies having high corporate governance, high market share, sound financial strength, strong brand equity, favorable return on capital, niche market positioning and promoters having skin in the game.
- The scheme also invests in companies having competent management to scale with strong management execution capabilities.
- The fund uses the QGLP (Quality, Growth, Longevity, Price) investment approach for stock selection and primarily invests in the fund house’s themes through a bottom-up stock selection approach.
Who Should Invest
- Investors having an investment horizon of 5 to 7 years and seeking to allocate higher exposure to small caps companies through dedicated funds.
- Those aiming to invest in high growth, high conviction portfolios for long term wealth creation.
- Those seeking to benefit from the high growth potential of emerging businesses, which are usually not represented in the large cap space.
- Those seeking exposure to a high-conviction and focused small-cap portfolio.
Frequently Asked Questions
What is the risk level of Motilal Oswal Small Cap Fund?
As per the fund factsheet published by the fund house, Motilal Oswal Small Cap Fund is considered to carry ‘Very High Risk’ for its investors.
Is there any lock-in period in Motilal Oswal Small Cap Fund?
Motilal Oswal Small Cap Fund has no lock-in period for its investors. The investors of this fund are free to make redemption requests on any date as per their requirements.
What type of mutual fund is the Motilal Oswal Small Cap Fund?
The Motilal Oswal Small Cap Fund is an open-ended equity mutual fund scheme and it belongs to the small cap fund category.
Is Motilal Oswal Small Cap Fund an open-ended or close-ended fund?
The Motilal Oswal Small Cap Fund is an open-ended equity mutual fund scheme.
What is the benchmark index for Motilal Oswal Small Cap Fund?
Nifty Smallcap 250 Index TRI is the benchmark index of Motilal Oswal Small Cap Fund. The scheme has Nifty 50 TRI as its additional benchmark index.