Published: 12th Aug 2024
By: Value Research
Motilal Oswal Business Cycle Fund NFO (new fund offer) opened for subscription on August 7, 2024 and will remain available until August 21, 2024.
NFO period August 7 to August 21, 2024 Type of fund Thematic Benchmark Nifty 500 TRI Fund managers Niket Shah and Ajay Khandelwal Exit load 1 per cent if redeemed on or before three months from the date of allotment Tax treatment If units are sold within a year, capital gains will be taxed at 20 per cent. If units are sold after one year, capital gains are taxed at 12.5 per cent. Gains of up to Rs 1.25 lakh are tax-exempt.
The fund intends to identify and invest in sectors that are witnessing an upward surge, aiming to capitalise on the momentum. Like other thematic funds, it will allocate around 80% of the money to equity, while the rest will be invested across debt and other assets.
Niket Shah, the chief investment officer (CIO) at Motilal Oswal AMC and Ajay Khandelwal will jointly manage the fund.
Based on monthly rolling returns in the last five years, the business cycle category has underperformed its benchmark, the Nifty 500 TRI, for the most part by a sizable margin.
L&T Business Cycle Fund (now HSBC Business Cycles Fund) is the oldest such fund. While it has delivered an average annual return of 16.3% since its 2014 launch, slightly more than the benchmark's 15%, most of the strong performance has occurred recently.
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