Motilal Oswal Manufacturing Fund

Motilal Oswal Manufacturing Fund offers an opportunity to invest in a diversified portfolio of manufacturing companies for long-term capital appreciation. The Fund will be investing in core sectors such as auto, healthcare, chemicals, and oil and gas, leveraging the growth potential of the manufacturing industry.

The fund is available for subscription under New Fund Offering from July 19th 2024 to August 2nd 2024.

Why Motilal Oswal Manufacturing Fund ?

• Investment Opportunity: The Motilal Oswal Manufacturing Fund offers a promising investment opportunity focused on India’s growing manufacturing sector. With a strategic emphasis on long-term capital appreciation, the fund benefits from India’s favourable economic climate, government initiatives like “Make in India,” and the Production Linked Incentive (PLI) scheme. It diversifies across various manufacturing-related sectors, mitigating risks and enhancing growth prospects for balanced and stable returns.
• Expert management: Managed by experienced professionals, the fund identifies high-potential companies within the manufacturing industry. Its strategic allocation and rigorous evaluation of sub-sectors ensure a robust investment approach. The Fund managers are seasoned professionals with extensive experience in the mutual fund industry backed by a strong track record of managing various funds like Motilal Oswal Large Cap fund, Motilal Oswal Balance advantage Fund, Motilal Oswal Flexi Cap fund.  
• Geopolitical advantage: Changes in geopolitics have prompted businesses to diversify their supply chains and India has an advantage over other Southeast Asian nations in this regard due to its low manufacturing wage costs and impressive rise in labour productivity.

This setting creates a climate that is favourable for significant foreign investment and advances the nation’s economic development.

 

Investors looking to capitalise on India’s manufacturing growth and align with national economic goals may consider the Motilal Oswal Manufacturing Fund. The subscription window from July 19th, 2024, to August 2nd, 2024, is a timely opportunity to invest. Tracking performance through the Nifty India Manufacturing TRI helps make informed decisions and achieve potential long-term capital appreciation.

Key Details of Motilal Oswal Manufacturing Fund

• Asset Management Company: Motilal Oswal Mutual Fund

• • Category: Thematic Equity Fund
  • Risk Profile: Very High
  • NFO Start Date: 19th July
  • NFO End Date: 2nd August
  • Exit Load: 1% if redeemed before 3 months from the date of allotment

• Fund managers: Ajay Khandelwal, Niket Shah, Santosh Singh, Atul Mehra, Rakesh Shetty, Sunil Sawant

Why Manufacturing Funds?

Mutual funds that focus on the manufacturing industry have done well as India rapidly emerges as a major player in the global manufacturing sector.

 

• Government Policies: The “Make in India” initiative aims to boost domestic manufacturing and turn India into a global manufacturing hub. Manufacturing funds are strategically positioned to benefit from the favourable policies, incentives, and infrastructure developments promoted by the scheme.

• PLI Scheme: The Indian government is trying to establish India as a global manufacturing hub in an effort to make the country self-sufficient. Furthermore, output is being significantly increased by production-linked incentives (PLIs) in a number of industries, including electronics, textiles, medicines, and autos.

• Diversification: Manufacturing funds invest in a broad range of industries within the sector, such as capital goods, chemicals, and automobiles. This diversification allows you to capitalise on various segments of the manufacturing industry that are set to grow under the “Make in India” initiative.

• Economic Impact: Investing in manufacturing funds supports and aligns with national economic goals, potentially leading to long-term capital appreciation as the sector expands.

Key Features of the Motilal Oswal Manufacturing Fund

1. Thematic Focus

Motilal Oswal Manufacturing fund specialises in investing in companies engaged in manufacturing activities, ensuring targeted exposure to this vital sector. It aligns with the economic strategy to boost industrial output and innovation. This focus allows investors to capitalise on the growth potential of manufacturing-related businesses.

 

2. Diversified Portfolio

This fund covers a broad range of manufacturing-related sectors, including auto and auto ancillaries, capital goods, healthcare, chemicals, oil and gas, and consumable fuels. This diversification helps mitigate sector-specific risks and enhances growth opportunities. By investing across multiple industries, the fund seeks to provide balanced and stable returns.

 

3. Long-Term Growth

Designed to achieve long-term capital appreciation, this fund leverages growth opportunities inherent in the manufacturing sector. It focuses on companies with strong fundamentals and growth prospects, aiming for sustained performance. Investors benefit from the potential for significant returns over an extended investment horizon.

 

4. Expert Management

This fund is managed by experienced professionals with deep expertise in identifying promising manufacturing companies and sectors. These experts conduct rigorous research and analysis to select high-potential investments. Their strategic insights and proactive management help optimise the fund’s performance and manage risks effectively.

Investment Approach

The Motilal Oswal Manufacturing Fund will allocate 80 to 100% of its assets to equities in the manufacturing sector, with up to 20% allocated to equities outside the sector or debt instruments. The fund assesses various subsectors within manufacturing to identify growth trends and opportunities. Consequently, the fund offers a diversified portfolio by including stocks from different manufacturing areas, such as Electronics Manufacturing Services, chemicals, and defense. It aims to maintain a focused portfolio of up to 35 stocks, selected for their high growth potential and likely benefits from the ongoing capital expenditure cycle.

Benchmark- Nifty India Manufacturing TRI

The Nifty India Manufacturing TRI provides a valuable tool for investors seeking exposure to the manufacturing sector, allowing them to track sector performance and make informed investment decisions.

Conclusion

For investors looking to tap into India’s manufacturing growth, the Motilal Oswal Manufacturing Fund offers a timely opportunity, with its subscription window open from July 19th, 2024, to August 2nd, 2024. Monitoring performance through the Nifty India Manufacturing TRI enables informed investment decisions and aims for potential long-term capital appreciation. The fund’s comprehensive strategy, combined with the positive economic and geopolitical climate, positions it as a valuable addition to an investor’s portfolio, supporting and benefiting from India’s journey to becoming a global manufacturing leader.