Motilal Oswal Digital India Fund NFO

The Motilal Oswal Digital India Fund New Fund Offer (NFO) presents an exciting opportunity for investors looking to capitalize on the burgeoning digital economy in India. This fund aims to invest primarily in companies operating in the digital and technology sectors, offering the potential for significant long-term returns.

Understanding the Digital Fund

The Motilal Oswal Digital India Fund seeks to generate capital appreciation by investing in equity and equity-related instruments of companies that are primarily engaged in the digital and technology sectors. The fund aims to benefit from the rapid growth and innovation taking place in these sectors, which are driving India’s economic transformation.

Key Features of the Fund

• Investment Objective: To generate long-term capital appreciation by investing primarily in digital and technology-related companies.
• Investment Strategy: The fund will focus on companies with strong fundamentals, competitive advantages, and growth potential within the digital and technology sectors.
• Risk Profile: The fund is considered moderately high risk due to its exposure to equity and equity-related instruments.
• Minimum Investment: The minimum initial investment is Rs. 500.
• Lock-in Period: There is no lock-in period for the fund. However if you redeem your investments within 3 months there will be exit load of 1%.
• Benchmark: The fund will use BSE Teck TRI as benchmark for this scheme.

BSE Teck TRI

The BSE Teck TRI (Technology Index) is a market capitalization-weighted index that tracks the performance of technology companies listed on the Bombay Stock Exchange (BSE). It is a benchmark index for the Indian technology sector and provides investors with a measure of the overall performance of technology companies in India. It was launched on 11th July 2001.

Here are some key points about the BSE Teck TRI:

• Constituents: The index includes a basket of technology companies listed on the BSE, covering a wide range of sectors such as IT services, software, hardware, telecommunications, and electronics.
• Weighting: The index is weighted based on the market capitalization of its constituent companies, meaning larger companies have a greater impact on its performance.
• Calculation: The index is calculated using a formula that takes into account the closing prices of its constituent stocks and their market capitalization.
• Usefulness: The BSE Teck TRI is a valuable tool for investors and analysts as it provides a benchmark for comparing the performance of technology companies in India. It can also be used to track the overall health of the Indian technology sector.
• Rebalancing: This index is rebalanced Semi-annually in the month of June and December.

Why Invest in the Motilal Oswal Digital India Fund?

• Growth Potential: The Indian digital economy is experiencing rapid growth, driven by factors such as increasing internet penetration, rising smartphone adoption, and government initiatives.
• Diversification: Investing in the digital sector can help diversify your portfolio and reduce risk.

Fund Manager

Mr. Ajay Khandelwal

Mr. Ajay is CFA Level 3 qualified fund manager with MBA from TAPMI,Manipal. He has a 13 years’ experience in fund management and research related activity. Prior to joining Motilal Oswal AMC he has worked with Canara Robeco AMC handling Small Cap Fund.

Mr.Niket Shah

Mr. Niket has over 15 years of experience in equity research and portfolio management. Currently managing Motilal Oswal flexi cap fund , Midcap fund and multicap fund. Prior to joining Motilal Oswal AMC he has worked with Edelweiss Securities Ltd as Research Analyst for Midcaps. He also worked with Religare Capital Markets Ltd as Associate Research Analyst for Midcaps.

Mr. Santosh Singh, Fund Manager – Equity Component

Mr. Singh has an overall experience of over 15 years. Mr. Singh was associated with Haitong International Securities Ltd. as Head of Research and Lead Analyst from 2015 to 2018 (years), where he was responsible for Research product and overall Research strategy. He was also associated with SG Asia Holdings as analyst from 2014 to 2015 years and also with Espirito Santo Securities as Lead analyst from 2007 to 2014 and so on. Mr. Singh was ranked No.1 analyst in India in the Asia money polls for insurance sector continuously for three years from 2015 to 2017.

Mr. Atul Mehra, Fund Manager – Equity Component

Mr. Atul is CFA chaterholder and has over 16 years of overall experience. He has be working as Senior Vice President – Fund Manager – PMS and AIFs with Motilal Oswal AMC Ltd from 2013 till present. Prior to joining Motilal Oswal AMC he has worked Edelweiss Capital Ltd as Research Analyst (2008-13)

Mr. Rakesh Shetty, Fund Manager – Debt Components

Mr. Rakesh has more than 15 years of overall experience and expertise in trading in equity, debt segment, Exchange Trade Fund’s management, Corporate Treasury and Banking. Prior to joining Motilal Oswal Asset Management Company Limited, he has worked with Company engaged in Capital Market Business wherein he was in charge of equity and debt ETFs, customized indices and has also been part of product development.

Mr. Sunil Sawant Fund Manager – International Equity Component

Mr. Sunil has been associated with the Company since 2018 forAlternates Business as Dealer. Prior to joining to Motilal Oswal Asset Management Company he has worked with Sharekhan, Aditya Birla and Angel Broking as Equity Dealer and Advisor. He has been associated in capital market industry since 2009.

Who Should Invest?

The Motilal Oswal Digital India Fund is suitable for investors who:

• Have a long-term investment horizon of at least 5-7 years.
• Are comfortable with moderate to high risk.
• Believe in the growth potential of the Indian digital economy.
• Are seeking exposure to companies operating in the digital and technology sectors.

NFO Timeline

NFO of the fund will remain open from 5th April, 2024 and will remain open till 19th of April, 2024. As this is pure equity fund this fund comes under very high risk category.

Peers in Technology Category

Below table show trailing returns of existing funds in technology space. While there are only 4 funds which history 10 or more years, six new funds got launched in this space in last 1 year. Motilal Oswal fund managers belive they will be able to build unique portfolio of digital companies which might have advntage over pure technology companies.

Scheme Name	1 Year	3 Year	5 Year	10 Year
ABSL Digital India	31.28	10.96	28.01	19.06
ICICI Pru Technology Fund	37.59	9.99	29.27	18.71
Franklin India Technology Fund	45.28	15.99	27.84	17.44
SBI Technology Opportunities	35.32	12.75	26.79	17.32
Tata Digital India	42.87	11.68	28.55	-
HDFC Technology Fund	41.97	-	-	-
Quant Teck Fund	41.97	-	-	-
Kotak Technology	-	-	-	-
Edelweiss Technology	-	-	-	-
Invesco India Technology Fund	-	-	-	-

Conclusion

The Motilal Oswal Digital India Fund NFO presents an attractive opportunity for investors to participate in the growth of India’s digital economy. However, it is important to conduct thorough research and consider your risk tolerance before making any investment decision. If you believe in the long-term prospects of the digital sector and are seeking capital appreciation, this fund may be worth considering.