Motilal Oswal Mutual Fund (MOMF) launches ‘Motilal Oswal Digital India Fund’
The NFO opens on 11th October 2024 and closes on 25th October 2024
Panaji: Motilal Oswal Mutual Fund (MOMF) today announced the launch of its latest new fund offer “Motilal Oswal Digital India Fund”. The fund is an open-ended equity scheme investing in Digital Space, focusing on Technology, Telecom, Media, Entertainment and other related ancillary sectors for investors who are looking at capital appreciation in the long term.
Digital payments have become a central modus operandi for most transactions, especially in rural India, where 38% of users use digital payments. The average Indian spends approximately 6hrs 45 mins online daily, with the highest traffic on e-commerce websites, social media platforms, and online markets places among others. Over the last five years, SaaS companies, B2B online platforms, digital ads, the software industry, Fintech, Foodtech, Insurtech, and digital logistics have all experienced significant growth in both industry size and revenue. This has resulted in creating an exponential digital opportunity that is valued to be approx. $900 billion.
Speaking on the digital fund space, Mr. Prateek Agrawal, MD and CEO of Motilal Oswal Asset Management Company said, “India’s internet economy is expected to grow rapidly as is the case in the US, China and around the world. Strong and sustained business growth is the key to obtain good investing results. It is a theme that we have been focused on and finds representation in most of our diversified funds and now we are bringing a fund focused on the theme. The fund is tailored for investors seeking capital appreciation over long term by investing predominantly in equities and equity related instruments of digital and technology related companies.”
Using the Quality, Growth, Longevity and Price (QGLP) framework, the Motilal Oswal Digital India Fund utilizes a disciplined approach to investing. It further utilizes the Risk Management Framework to ensure consistent and sustainable performance, the Profit Taking/Stop Loss Framework, and the Stringent Liquidity Framework to evaluate stock weightage, stock size, sector sizing, and diversification strategy.
Niket Shah, Chief Investment Officer, Motilal Oswal AMC said, “India is poised to become a world leader in digital infrastructure and deployment. Compared to the United States, India has reached a tipping point in the digital space, with an estimated 10% e-retail penetration by 2027. However, there is a long runway for tech growth in India, as none of the top ten stocks in the country are digital, and only two are in the IT sector. The IT sector’s representation in India is currently very low in comparison to the global market, presenting a huge opportunity of growth”.
“Our Digital India fund utilises bottom up and top down approach with proprietary QGLP framework, Internet digital company valuation methodology derived strategically for hi-conviction portfolio. We look forward to driving the digital fund space forward with Digital India Fund”, added Niket Shah.
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