NFO Alert: Motilal Oswal AMC launches manufacturing fund, for whom is it the perfect investment option, scheme details

Manufacturing Fund :Motilal Oswal Asset Management Company (MOAMC) has today announced its new fund offer “Motilal Oswal Manufacturing Fund” on 19th July 2024. This new thematic fund of Motilal Oswal AMC is an open-ended equity scheme that follows the manufacturing theme. This new fund offer will be open for investment from 19th July 2024 to 2nd August 2024. One can invest in this scheme with a minimum of Rs 500.

Motilal Oswal Manufacturing Fund aims to achieve high returns over the long term by investing primarily in equity and equity-related options of companies engaged in manufacturing activities. The benchmark for this fund is the Nifty India Manufacturing Total Return Index.

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Portfolio Strategy

The fund house will focus on investing in a unique high-convention focused manufacturing portfolio (up to 35 stocks) of identified high growth themes. The fund aims to maintain a balanced portfolio with 80 per cent to 100 per cent exposure to each of the manufacturing stocks. The fund is primarily designed for investors who are planning to invest in long term capital appreciation and a strong high-convention focused manufacturing portfolio.

Interest is increasing in the manufacturing sector

Prateek Agarwal, MD & CEO, Motilal Oswal Asset Management Company, says that due to the developing geo-political outlook and economic strength at the domestic level, India is strategically emerging as an emerging manufacturing hub in the world. It is expected that investor interest in this sector will increase and investment from international investors will increase. Due to which exports will increase to 4.5 percent by 2031, which is currently around 1.5 percent. The government has also set an ambitious target of 25 percent of Indian economic output by 2025 for the manufacturing sector. India has seen a lower manufacturing labor cost compared to other SEA countries as well as labor productivity growth of 6.2 percent compared to China’s 4.2 percent for FY 2024. This indicates that India is ahead of other countries in terms of increased production. With the China+1 theme implemented, India is expected to benefit from the shifting of production sectors out of China.

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Diverse Portfolio

Motilal Oswal MF CIO Niket Shah says that funds focused on manufacturing can bring diversification to an investor’s portfolio. There are many sectors that can rapidly increase the country’s exports, prominent among which are EMS, chemical and defense sectors. Our government has set a target of exports of more than Rs 50,000 crore by the end of this decade through indigenization and support at the policy level. Our country is on the path of continuous growth, as we are witnessing a macro Goldilocks event. Therefore, our strategy is to invest in high growth manufacturing themes. Along with this, these investors will also get an opportunity to be a part of India’s manufacturing growth story.

(Note: Investment in mutual funds is also subject to market risk. Therefore, if there is any confusion or doubt about the scheme, investors should consult their financial advisor.)