Motilal Oswal Multi-Asset Fund is an open-ended fund and as the name suggests the fund will be investing in multiple assets. The NFO opened on July 15 and will close on July 29. The multiple assets are international equity index funds/equity index funds, debt and equity, gold exchange-traded funds (ETF) and money market instruments. Here’s all you need to know about the scheme.
The scheme aims to generate long term capital appreciation by having a diversified mix of assets in its fund portfolio. As mentioned before, the mix of assets is international equity index funds/equity index funds, debt and equity, gold exchange-traded funds (ETF) and money market instruments.
Here is what the asset allocation looks like:
(% of total assets)
|Minimum||Maximum||High / Medium / Low|
|Equity, Equity related instruments and International Equity Index Funds/ Equity ETFs^||10||50||High|
|Debt, Money Market Instruments||40||80||Medium|
|Gold Exchange Traded Funds||10||20||Medium|
To decide on the asset allocation, the fund will be using Motilal Oswal Value Index (MOVI). It is an indicator of asset allocation between arbitrage, debt, derivatives strategies and equity. The asset allocation will be reviewed twice a month and the rebalancing will be conducted on the 15th of every month and one day prior to the expiry of the derivative on the exchange.
A low MOVI value indicates that the market valuation is cheap and equity allocation can be higher. Keeping this in mind the AMC has created a structure for how much the asset allocation should be according to the MOVI value.
Dynamic rebalancing ( purely) based on the 30DMA of MOVI
|MOVI Bands||Equity||Debt||Minimum International Equity Index/ETF||Minimum Gold ETFSs|
|Less than 70||25.0%-27.5%||55.0%-52.5%||10%||10%|
|Greater than 130||7.5%-10.0%||72.5%-70%||10%||10%|
The fund will be having both versions: regular and direct plans. The plans do not have a dividend option and it just has a growth option. The face value is Rs 10 per unit. The scheme will be offered at daily adjusted net asset values (NAV) when the scheme reopens after the NFO period ends. The scheme has a combination of benchmark indices and the following weightage will be given to each index.
You can find other scheme related details below:
|Name of the Fund||Motilal Oswal Multi-Asset Fund|
|Type of Scheme||An open-ended scheme that will be investing in five different asset classes: international equity index funds/equity index funds, debt and equity, gold exchange-traded funds (ETF) and money market instruments|
|Equity category||Multi-Asset Fund|
|Benchmark||30% Nifty 50 TRI + 50 % Crisil Short Term Gilt Index + 10% Domestic Price of Gold + 10% S&P 500 Index (TRI)|
|NFO Dates||Opens on July 15, 2020 and closes on July 29, 2020|
|Fund Manager||Siddharth Bothra, Abhiroop Mukherjee, Herin Visaria and Swapnil Mayekar.|
|Minimum Application Amount/Minimum Purchase Amount||Rs. 500 and in multiples of Re. 1 thereafter|
|Minimum Additional Investment||Rs 500 and in multiples of Re 1 thereafter|
|Minimum Redemption Amount||Rs 500 and in multiples of Re 1 thereafter|
|Exit Load||1%- If redeemed on or before 3 months from the date of allotment
Nil- If redeemed after 3 months
|Plans||Regular Plan and Direct Plan|
|Weekly SIP||Rs. 500/- and multiples of Re 1 thereafter for minimum 12 installments|
|Fortnightly SIP||Rs. 500/- and multiples of Re 1 thereafter for minimum 12 installments|
|Monthly SIP||Rs. 500/- and multiples of Re 1 thereafter for minimum 12 installments|
|Quarterly SIP||Rs. 1,500/- and multiples of Re 1 thereafter for minimum 4 installments|
|Annual SIP||Rs 6,000 and multiples of Re 1 thereafter for minimum 1 installment|
About the Indices
The scheme will be benchmarked against a customized composite benchmark which will be made up of Crisil Short Term Gilt Index, Nifty 50 TRI, Domestic Price of Gold and S&P 500 Index (TRI). Here is a table that explains which asset class is benchmarked against which index:
|Equity and Equity Related Instruments||Nifty 50 TRI||30%|
|Debt and Money Market Instruments||Crisil Short Term Gilt Index||50%|
|International Equity||S&P 500 Index ( TRI)||10%|
|Gold Exchange Traded Funds||Domestic Price of Gold||10%|
Equity Benchmark-Nifty 50 TRI: Nifty 50 is the benchmark index of NSE and measures of the top 50 companies listed on the NSE. So Nifty 50 TRI (total return index) is a TRI index of Nifty 50 but it also captures price movements and dividend payouts of the constituent stocks.
International Equity Benchmark-S&P 500 Index (TRI): S&P 500 measures the performance of 500 large companies listed on the U.S. stock exchanges. TRI index, again, has the same concept and will capture the price movement and dividend payouts as well as the constituent stocks.
Debt and money market instruments: Crisil Short Term Gilt Index: This index tracks the performance of government securities with a residual maturity of up to five years.
Gold ETFs: Domestic Price of Gold.
Siddharth Bothra: He is the fund manager for the equity component. Mr. Bothra has an experience of over 18 years in investment research and fund management. He has been with Motilal Oswal AMC since 2011. Other funds managed by Mr. Bothra are Motilal Oswal Focused 25 Fund and Motilal Oswal Equity Hybrid Fund.
Abhiroop Mukherjee: Mr. Mukherjee will be managing the debt component of the fund. He has over 11 years of experience in managing debt and money market funds. He has been with the AMC since 2011. Other funds solely managed by Mr. Mukherjee are Motilal Oswal Ultra Short Term Fund and Motilal Oswal Liquid Fund. There are also some funds where only the debt component is under his management:
Herein Visaria: Mr. Visaria will be managing the international equity bit of the multi-asset fund. He has over 11 years of experience in the international derivative research field and institutional sales trading. Other funds managed by him are
Swapnil Mayekar: He will be managing the gold component of the fund. Mr. Mayekar also has an overall experience of 11 years in fund management and product development. He has been with the AMC since 2010. Other funds managed by him are:
Source: Scheme Information Document
Investors with moderately high-risk appetite looking to benefit from long term wealth creation potential of equities with a focused approach can consider investing in this fund. Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing.