The Motilal Oswal Large Cap Fund is an open-ended equity scheme launched on January 17, 2024, to achieve long-term capital appreciation by primarily investing in large-cap companies. It aims to generate superior returns over the long term while keeping risk controlled. The New Fund Offer period closes on January 31, 2024. There is a 1% exit load if redeemed within 15 days of allotment, but no load thereafter. The minimum subscription amount is Rs 500.
Investment Objective
To achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of large-cap companies. However, there can be no assurance that the investment objective of the scheme will be realized.
Funds Allocation
| Instrument | Indicative Allocations (% of total assets) | Risk Profile |
| Equity and Equity related instruments of Large cap companies | 80 to 100 | Very High |
| Equity and Equity-related Instruments of companies other than Large cap companies including foreign companies | 0 to 20 | Very High |
| Debt and Money Market instruments (including cash and cash equivalents), Liquid and Debt Schemes of Mutual Fund. | 0 to 20 | Low to Moderate |
| Units issued by REITs and InvITS | 0 to 10 | Very High |
Benchmark Index
The performance of the Scheme will be benchmarked against the Nifty 100 TR Index as the scheme will invest primarily in Large-cap companies.
Fund Managers
| Name of Fund Manager | Age | Educational Qualification | Experience |
| Ajay Khandelwal | 44 years | CFA Level 3, PGDM – MBA, B.E. | Ajay has a 13 years’ experience in
fund management and research related activity. |
| Niket Shah | 37 years | MBA – Finance | Niket has 13 years of overall
experience. |
| Santosh Singh | 44 years | CA, CFA | Mr. Singh has an overall
experience of over 15 years. |
| Atul Mehra | 35 years | CFA, M.com, B.com | Atul has over 15 years of overall experience. |
| Rakesh Shetty | 42 years | B.com | Rakesh has more than 14 years of overall experience and expertise in trading in equity, debt segment, Exchange Trade Fund’s management, Corporate Treasury and Banking. |
Peer Large cap funds – Historical Performance
| Scheme Name | AuM (Cr) | 3M | 6M | 1Y | 2Y | 3Y | 5Y | 10Y |
| ICICI Prudential Bluechip Fund – Direct Plan – Growth | 47,928.62 | 17% | 18% | 34% | 19% | 23% | 19% | 18% |
| SBI Blue Chip Fund – Direct Plan – Growth | 43,487.36 | 10% | 8% | 24% | 14% | 18% | 17% | 17% |
| Mirae Asset Large Cap Fund – Direct Plan – Growth | 37,969.17 | 11% | 9% | 22% | 12% | 17% | 16% | 18% |
| Axis Bluechip Fund – Direct Plan – Growth | 33,171.04 | 12% | 10% | 22% | 8% | 13% | 15% | 16% |
| HDFC Top 100 Fund – Direct Plan – Growth | 30,261.72 | 17% | 17% | 34% | 21% | 24% | 17% | 17% |
| Aditya Birla Sun Life Frontline Equity Fund – Direct Plan – Growth | 25,898.36 | 13% | 12% | 27% | 14% | 19% | 16% | 16% |
| Nippon India Large Cap Fund – Direct Plan – Growth | 20,217.64 | 15% | 15% | 37% | 23% | 26% | 19% | 19% |
| UTI Large Cap Fund – Direct Plan – Growth | 12,230.07 | 11% | 10% | 23% | 10% | 17% | 16% | 16% |
| Canara Robeco Bluechip Equity Fund – Direct Plan – Growth | 11,639.09 | 13% | 11% | 27% | 13% | 18% | 19% | 17% |
Risk Factors
Risks associated with investing in Equities
Equity and equity-related instruments on account of their volatile nature are subject to price fluctuations daily. The volatility in the value of the equity and equity-related instruments is due to various micro and macro-economic factors affecting the securities markets. This may harm individual securities /sectors and consequently the NAV of the Scheme. The inability of the Scheme to make intended securities purchases due to settlement problems could cause the Scheme to miss certain investment opportunities as in certain cases, settlement periods may be extended significantly by unforeseen circumstances
Asset Class Risk
The returns from the types of securities in which the Scheme invests may underperform from the various general securities markets or different asset classes. Different types of securities tend to go through cycles of out-performance and under-performance in comparison with the general securities markets.
Interest Rate Risk
Changes in interest rates will affect the Scheme’s Net Asset Value. The prices of securities usually increase as interest rates decline and usually decrease as interest rates rise. The extent of fall or rise in the prices is guided by duration, which is a function of the existing coupon, days to maturity and increase or decrease in the level of interest rate.
Liquidity or Marketability Risk
This refers to the ease at which a security can be sold at or near its true value. The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. Liquidity risk is characteristic of the Indian fixed-income market. Trading Volumes, settlement periods and transfer procedures may restrict the liquidity of the investments made by the Scheme. Different segments of the Indian financial markets have different settlement periods and such period may be extended significantly by unforeseen circumstances leading to delays in the receipt of proceeds from the sale of securities.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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