Motilal Oswal Mutual Fund launches index fundsand ETFs tracking Quality and Value factors

·      MotilalOswal S&P BSE Quality ETF and Motilal Oswal S&P BSE Quality Index Fund (Anopen-ended scheme replicating/tracking the performance of the S&P BSEQuality Index)

·      MotilalOswal S&P BSE Enhanced Value ETF and Motilal Oswal S&P BSE EnhancedValue Index Fund (An open-ended scheme replicating/tracking theperformance of the S&P BSE Enhanced Value Index)

Mumbai,28 July 2022: Motilal Oswal Asset Management Company(MOAMC) has announced the launch of factor-based funds, i.e. MotilalOswal S&P BSE Quality ETF & Motilal Oswal S&P BSE Quality IndexFund and Motilal Oswal S&P BSE Enhanced Value ETF &Motilal Oswal S&P BSE Enhanced Value Index Fund. TheNFO opens on 29 July and closes on 12 August 2022.

Motilal OswalS&P BSE Quality ETF and Motilal Oswal S&P BSE Quality Index Fund

The Motilal Oswal S&P BSE Quality ETF& Index Fund are single factor-based investment strategies that aim toinclude the top 30 ‘Quality’ stocks based on rule-based parameters. Thesecompanies tend to have durable business models and sustainable competitiveadvantages. The index constituents are selected from the universe of theS&P BSE LargeMidCap Index. The Quality stocks are identified based oncompanies with high earnings, a better quality of earnings and lower debt. Overa long time horizon, it has been observed that such high-quality stocks tend tooutperform low-quality stocks, as they are better equipped to weather adverseeconomic conditions. 

Motilal Oswal S&P BSE Enhanced Value ETF and Motilal OswalS&P BSE Enhanced Value Index Fund

TheMotilal Oswal S&P BSE Enhanced, Value ETF & Index Fund are singlefactor-based investment strategies that aim to include 30 ‘Value’ stocks thatare most attractive in valuations based on rule-based parameters. The indexconstituents are selected from the universe of the S&P BSE LargeMidCapIndex. The Value stocks are identified based on low Price to Earnings, Price toBook and Price to Sales ratios. Value investing is one of the oldest andbest-known styles of investing. It is based on the foundation that “LOW valuestocks” stocks, i.e. stocks with relatively attractive valuations, tend tooutperform “HIGH value stocks” stocks over the long-term.

“With an objective to cater the evolving needsof the investors, we have introduced ETFs & index funds in the factorinvesting segment. These new funds are based on the Quality and Value factors.We aspire to build a unique brand positing by establishing ourselves as a fundhouse to drive the factor investing category in India. With the launch of boththese funds, it will complete our bouquet of single-factor based passiveofferings”, saidNavin Agarwal, MD & CEO, Motilal Oswal Asset Management Company Ltd.

Pratik Oswal, Head of Passive Funds, Motilal Oswal AssetManagement Company Ltd said, “These single factor-based funds are suitable for investors looking todiversify their portfolio & gain exposure to the Quality or Value factor.The Quality funds aim to invest in companies that are generally resilient tosetbacks & perform well in various market conditions, especially duringbear and recovery markets. At the same time, the Value funds aim to invest incompanies that are trading at relatively attractive valuations based onparameters like low Price to Earnings, Price to Book and Price to Sales ratios.This strategy has historically worked well during times of market recovery.”

During NFO of boththese funds, investors can invest a minimum of Rs. 500/- and in multiples ofRe. 1/- thereafter. On an ongoing basis, investors can purchase/redeem units ofthe scheme through a financial advisor or by log-in in to www.motilaloswalmf.com.

Pleasenote: The other Funds managed by the Fund Managers can be viewed on

www.motilaloswalmf.com

DisclaimerThis release has been issued on the basis ofinternal data, publicly available information and other sources believed to bereliable. The information contained in this document is for general purposesonly and not a complete disclosure of every material fact. The Stocks (if any)mentioned herein is for explaining the concept and shall not be construed as aninvestment advice to any party. The information / data herein alone is notsufficient and shouldn’t be used for the development or implementation of aninvestment strategy. It should not be construed as investment advice to anyparty. All opinions, figures, estimates and data included in this article areas on date. The article does not warrant the completeness or accuracy of theinformation and disclaims all liabilities, losses and damages arising out ofthe use of this information. The statements contained herein may includestatements of future expectations and other forward-looking statements that arebased on our current views and assumptions and involve known and unknown risksand uncertainties that could cause actual results, performance or events todiffer materially from those expressed or implied in such statements. Readersshall be fully responsible/liable for any decision taken on the basis of thisarticle. Mutual Fund investments are subject to market risks, read all schemerelated documents carefully.

BSE Scrip Codeand NSE Symbol: The scheme is proposed to be listed on Bombay Stock ExchangeLimited and National Stock Exchange of India Limited post which the scrip codeand symbol shall be updated post listing.

About Motilal Oswal Asset Management Company:

Motilal Oswal Group possesses legacy inequities for over 3 decades. Motilal Oswal Asset Management Company Ltd.(MOAMC) is registered with SEBI as the Investment Manager for Motilal OswalMutual Fund. It was incorporated on November 14, 2008. It provides InvestmentManagement and Advisory Services to investors based within and outside Indiaand having AIF’s, Portfolio Management Servicesbusiness, ETFs and Mutual Funds. 

MOAMC is one of the pioneers of PMS businesswith over 17+ years of track-record. It is also one of the pioneers of passivefunds in India through ETFs way back in 2010, Motilal Oswal Nifty 50 ETF,Motilal Oswal Midcap 100 ETF, Motilal Oswal Nasdaq 100 ETF – the only offshoreETF and have exclusive rights for Nasdaq.

MOAMC follows a unique investment philosophy,‘Buy Right; Sit Tight’ which means buying quality companies at a reasonableprice and Sit Tight to ride their growth cycle for a long period of time.

For further detailscontact:
Rohini Kute
Head, Corporate Communication,
Motilal Oswal Financial Services
Mail: rohini.kute@motilaloswal.com