The Motilal Oswal Small Cap Fund NFO closed on December 19, 2023, so it’s currently not open for investment. However, I can still provide you with comprehensive information about the fund:
Key Details:
- Objective: Capital appreciation by investing predominantly in small-cap stocks (minimum 65% allocation).
- Fund Manager: Ajay Khandelwal.
- Investment Strategy: High-conviction portfolio of around 30 small-cap stocks (individual exposure between 1.5% and 4.5%). Focus on quality businesses with strong growth potential at reasonable prices. Low-churn, buy-and-hold approach.
- Benchmark: Nifty Smallcap 250 TRI.
- Open Date: December 5, 2023.
- Close Date: December 19, 2023.
- Minimum Investment: Rs. 500 and in multiples of Rs. 1 thereafter.
- NAV: The initial NAV was set at Rs. 10.
Performance:
As the fund is new, it doesn’t have any performance track record yet. However, small-cap funds can generate substantial returns in the long term, but they also carry higher volatility.
Important Points to Consider:
- Invest in small-cap funds only if you have a long-term investment horizon (10+ years).
- These funds are best suited for investors with a higher risk appetite who can tolerate market fluctuations.
- Diversify your portfolio across different asset classes and avoid putting all your eggs in one basket.
Additional Resources:
- Motilal Oswal Small Cap Fund website: https://www.motilaloswalmf.com/mutual-funds/motilal-oswal-small-cap-fund
- CNBC TV18 article on the fund: https://www.cnbctv18.com/personal-finance/motilal-oswal-small-cap-fund-collects-1350-crore-during-nfo-period-18628611.htm
I hope this information is helpful. Please let me know if you have any other questions.