Motilal Oswal Build India Fund: A Thematic Play on Infrastructure Growth

Introduction

Motilal Oswal Mutual Fund has filed a draft with SEBI for the launch of the Motilal Oswal Build India Fund, a thematic equity mutual fund. This scheme is designed to benefit from India’s booming infrastructure sector, focusing on companies that are directly or indirectly contributing to infrastructure development. In this blog, we’ll take a closer look at the fund’s objectives, asset allocation, management, and benchmark indices.

Fund Category and Objective

Motilal Oswal Build India Fund falls under the thematic equity category and is open-ended. Its primary objective is to achieve long-term capital appreciation. The fund plans to predominantly invest in equity and equity-related instruments of companies involved in infrastructure development in India, such as power, transportation, roads, railways, and telecommunications​. 

Who Manages the Fund?

The fund will be managed by an experienced team of fund managers from Motilal Oswal Asset Management. Ajay Khandelwal, CFA Level 3 and PGDM, is one of the key fund managers, with 14 years of experience in fund management and research activities. Santosh Singh, CA and CFA, brings additional expertise with over 16 years of experience​.

Benchmark Indices

The fund’s performance will be benchmarked against the Nifty Infrastructure Total Return Index (TRI). This index reflects the behavior of infrastructure companies, tracking key sectors like power, ports, railways, and utility services​.

Asset Allocation

The fund plans to allocate a minimum of 80% to equity and equity-related instruments of companies benefiting from infrastructure growth in India. Up to 20% can be invested in non-infrastructure-related equities, debt, money market instruments, REITs, and InvITs. It may also invest in overseas ETFs that align with the fund’s mandate​.

Key Features

• Scheme Type: Open-ended equity scheme
• Fund Category: Thematic infrastructure-focused
• Investment Strategy: Active stock selection with a focus on companies benefiting from infrastructure growth
• Benchmark: Nifty Infrastructure TRI

Conclusion

With the focus on India’s infrastructure growth, the Motilal Oswal Build India Fund provides an excellent opportunity for investors seeking long-term capital appreciation in this sector. The fund’s well-diversified asset allocation and experienced management team ensure that investors can tap into the expanding infrastructure market.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.