Motilal Oswal launches Multicap fund

Motilal Oswal Mutual Fund has come out with a multi-cap fund - Motilal Oswal Most Focused Multicap 35. This is the second launch by the fund house within two months.

Motilal Oswal Most Focused Multicap 35 fund is a 'go anywhere' fund and can invest across sectors and market capitalisations. The only investment limitation it has is in terms of number of stocks which can go upto only 35. This is the third fund from the fund house with a focused approach. It already has two funds -Most Focused 25 and Most Focused Midcap 30, with a focused approach. Most Focused Midcap 30 was launched in February 2014.

Aashish Somiyaa, Managing Director & CEO, Motilal Oswal AMC said, "In the long run, we have always seen alternating cycles of outperformance between large cap, mid-cap and small-cap stocks. From that perspective MOSt Focused MultiCap 35 Fund becomes an ideal core holding proposition in an investor's equity portfolio allocation".

The fund will have an expense ratio of 2.50 per cent. It is benchmarked against CNX 500 index. The minimum application amount for the fund during the New Fund Offer is Rs 5,000 and multiples of Rs 1 thereafter. The NFO which opened in April 7, will close on April 17, 2014.

Srikanth Meenakshi, founder & director, FundsIndia says "Focused funds are actually diversified funds which limit their portfolio to a few stocks, but not to any particular sector or theme. These funds target investors who want to invest in few good companies, don't want much churn and hold for the long term".