Motilal Oswal Developed Market Ex US ETFs Fund of Funds-Reg (G)

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• Motilal Oswal launches Nifty 500 Momentum 50 Index Fund Motilal Oswal Mutual Fund has launched the Motilal Oswal Nifty 500 Momentum 50 Index Fund. This fund will track the Nifty 500 Momentum 50 Index.

  The new fund offer (NFO) commenced on September 2, 2024, and will conclude on September 16, 2024. Investors interested in participating can subscribe to the fund during this period.

  The fund is open-ended, meaning it will continuously offer new units to investors. It aims to replicate the performance of the Nifty 500 Momentum 50 Total Return Index. The fund provides exposure to stocks that have exhibited strong momentum across the large, mid, and small-cap segments of the Nifty 500 Index.

  The Nifty 500 Momentum 50 Index is a carefully curated benchmark that identifies the top 50 companies within the Nifty 500 based on their Normalised Momentum Score. This index adheres to a momentum investing strategy, which involves selecting stocks that have demonstrated recent outperformance. The underlying principle is that stocks performing well in the past are more likely to maintain their momentum in the near future.

  The index construction process involves a rigorous evaluation of Nifty 500 stocks based on their price performance over the past 6 months and 1 year. Additionally, the 12-month volatility is adjusted to ensure a balanced approach. The top 50 stocks exhibiting the strongest momentum are then included in the index.

  As of August 30, 2024, the Nifty 500 Momentum 50 Index has delivered impressive returns, registering a growth of 69.51% over the past year and 35.77% CAGR over the past five years. This historical performance underscores the potential benefits of investing in momentum-driven strategies.

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• Motilal Oswal AMC launches Business Cycle Fund Motilal Oswal Asset Management Company (MOAMC) launched its latest new fund offer Motilal Oswal Business Cycle Fund. The new thematic fund by MOAMC is an open-ended equity scheme that following business cycles-based investing theme.

  The NFO period is from 7th to 21st August 2024. This investment strategy focuses on generating wealth by investing in companies through dynamic allocation between various sectors and stocks at various stages of business cycle.

  The performance of the fund will be measured against the Nifty 500 TRI Index, a broad-based index representing the top 500 companies listed on the National Stock Exchange.

  The fund will invest minimum of 80% and maximum of 100% in Equity and Equity related instruments selected on the basis of business cycle theme, Maximum of 20% in Equity & Equity related instruments other than above and Debt and Money Market instruments (including cash and cash equivalents) respectively. Maximum of 10% in Units issued by REITs and InvITs. Maximum of 5% in Units of Mutual Funds with provision for risk mitigation.

  This product is suitable for investors who are seeking capital appreciation over long term by investing predominantly in equities and equity related instruments selected on the basis of business cycle.

  Prateek Agrawal, MD and CEO of Motilal Oswal Asset Management Company said, Indian economy is in an expansion phase which reflects in the improving corporate profitability, credit and CAPEX pick up, and government support to various sectors. This also resulted in improvement in India's domestic demand and consumption during the past 3 years, which has led to improving business prospects, driving investments in business capacity, and improvement in household assets. With the business cycle strategy, we want to capitalize on this virtuous time for Indian corporates, by selecting businesses that are most likely to do well during this expansion phase.

  Niket Shah, CIO, Motilal Oswal Asset Management Company said, Our Business Cycle Fund is strategically designed to capitalize on emerging sectors and themes, allowing early exposure and maximizing the potential for wealth creation from upcoming trends. Utilizing HI-Growth & Hi-Conviction investing, the fund leverages a concentrated allocation of top house ideas across the market spectrum. Its agile approach ensures dynamic investment allocation across all market caps, adapting to evolving opportunities and optimizing returns'.

  In business cycle investing, strategic positioning during different phases can significantly impact returns. During expansionary phases, such as 2004-07 and 2021-24, sectors like Capital Goods and Realty have outperformed defensive sectors due to increased capex and infrastructure development. Conversely, during slowdowns like 2009-12, FMCG sectors demonstrated resilience as essential consumption remained steady, outshining sectors like Realty. Similarly, in the trough phase of 2013-20, Consumer Durables surpassed Metals as consumption began to rebound. Understanding these dynamics, wherein market returns are driven by earnings growth and shifts in sentiment, can guide investors in making informed decisions aligned with the business cycle, added Niket Shah.

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• Motilal Oswal MF announces change in benchmark index under its schemes Motilal Oswal Mutual Fund has announced change the benchmark for the following schemes, with effect from 01 August 2024. Accordingly, the revised benchmark index will be:

  Motilal Oswal Multi Asset Fund

  Scheme Name	Name of Existing Benchmark	Revised Name of Benchmark
  Motilal Oswal Multi Asset Fund	35% Nifty 500 TRI + 50% CRISIL Short Term Bond Index + 13% Domestic Price of Gold + 2% Domestic Price of Silver.	50% Nifty 500 TRI + 35% CRISIL Short Term Bond Fund Index + 13% Domestic Price of Gold + 2% Domestic Price of Silver.

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