Motilal Oswal Quant Fund NFO: all you need to know

The Motilal Oswal Quant Fund is an innovative offering designed to leverage quantitative models for stock selection and portfolio management. This fund aims to provide investors with a systematic and rule-based approach to investing, minimising human biases and maximising data-driven decisions.

Motilal Oswal Quant Fund NFO details

Fund Name: Motilal Oswal Quant Fund  

Fund House: Motilal Oswal Asset Management Company  

Benchmark Index: Nifty 500 Total Return Index  

Minimum Investment Amount: ₹500  

Fund Manager: Mr. Abhiroop Mukherjee and Mr. Niket Shah

Motilal Oswal Quant Fund NFO investment objective

The primary objective of the Motilal Oswal Quant Fund is to achieve long-term capital appreciation by investing in a diversified portfolio of stocks selected through quantitative models. These models use statistical and mathematical methods to identify investment opportunities, ensuring a disciplined and unbiased approach for your mutual fund investment.

Why choose the Motilal Oswal Quant Fund?

1. Data-Driven Approach: The fund relies on quantitative models for stock selection, reducing human biases and emotional decision-making.

2. Diversification: By investing in a broad range of stocks across different sectors, the fund aims to mitigate risks and capture growth opportunities.

3. Transparency and Discipline: The rule-based investment process ensures transparency and consistency in stock selection and portfolio management.

Motilal Oswal Quant Fund NFO investment strategy

The Motilal Oswal Quant Fund uses a multifactor model to evaluate and select stocks. Key factors considered in the model include:

• Quality: Metrics such as return on equity (ROE), earnings variability, and debt levels.
• Value: Valuation ratios like price-to-earnings (P/E), price-to-book (P/B), and dividend yield.
• Momentum: Trends in stock prices and earnings revisions.
• Size: Market capitalisation of companies to ensure diversification across different segments.

Motilal Oswal Quant Fund asset allocation

• Equity and Equity-Related Instruments: 80-100% in companies across various market capitalisations.
• Debt and Money Market Instruments: Up to 20% to manage liquidity and reduce overall portfolio risk.

Motilal Oswal Quant Fund risks involved

1. Market Risk: As an equity fund, it is subject to market risks and volatility, influenced by economic and geopolitical factors.

2. Model Risk: The effectiveness of quantitative models may vary based on market conditions and the accuracy of input data.

3. Sectoral Risk: Diversification may not protect against sector-specific risks if a significant portion of the portfolio is concentrated in underperforming sectors.

Who should invest in the Motilal Oswal Quant Fund?

The Motilal Oswal Quant Fund is suitable for investors looking for long-term capital appreciation through a disciplined and systematic investment approach. It is ideal for those who prefer a data-driven method over traditional stock-picking and are comfortable with equity market risks.

How to invest in the Motilal Oswal Quant Fund?

Investors can subscribe to the Motilal Oswal Quant Fund NFO through various channels, including online platforms, financial advisors, and directly through the fund house. The minimum investment amount is ₹500, making it accessible to a wide range of investors.

Conclusion

The Motilal Oswal Quant Fund offers a unique opportunity to invest in a diversified portfolio driven by quantitative models. This approach aims to deliver consistent and unbiased returns, leveraging data and statistical analysis for optimal stock selection. As with any investment, potential investors should consider their risk tolerance and investment goals before committing.

By choosing the Motilal Oswal Quant Fund, investors can benefit from a systematic, rule-based approach to equity investing, potentially enhancing their portfolio's long-term performance through disciplined stock selection.