Motilal Oswal Launches Digital India Fund: Subscribe to the Tech-focused NFO till October 25

Motilal Oswal Asset Management Company (MOAMC) has recently introduced its latest New Fund Offer (NFO), the Motilal Oswal Digital India Fund, aimed at capitalizing on the digital and technology sectors' rapid growth. This open-ended equity scheme provides an investment opportunity for those seeking exposure to companies that are leveraging or contributing to India's increasing digitization. Investors can subscribe to the fund till October 25, 2024.

Motilal Oswal Digital India Fund Overview and Objectives

The Motilal Oswal Digital India Fund is specifically designed for long-term capital growth by investing primarily in companies that play a key role in the digital and technology sectors. The fund’s investment universe spans across hardware, software, telecommunications, media, and e-commerce industries. The primary objective is to generate long-term capital appreciation by selecting quality firms in the digital space.

• Investment Focus: Digital and technology-dependent companies, including sectors like hardware, software, telecommunications, media, and e-commerce.

• Investment Objective: "Generate long-term growth of capital primarily through investments in digital technology companies."

• Benchmark: BSE Teck Total Return Index.

• Portfolio Strategy: A focused approach targeting high-quality companies with anticipated high growth potential in the future.

Key Highlights of India's Digital Growth

India is on the verge of significant digital transformation, with adoption rates reaching new heights. According to internal research by MOAMC, the country ranks among the top two globally in digital adoption metrics. Here are some major developments:

• Internet Penetration: India's internet user base has grown fourfold since 2014 and is projected to reach 1 billion users by next year.

• Smartphone Users: India currently boasts 1,013 million smartphone users, having grown thirtyfold since 2010.

• UPI Usage: Digital transactions through UPI have skyrocketed, with over 350 million users, and transactions totaled INR 144 billion as of July 2024.

Prateek Agrawal, Managing Director and CEO of MOAMC, expressed optimism, stating, “India's internet economy is set to grow rapidly, mirroring trends seen in the US and China. Strong business growth is vital for successful investments, and this fund will be a significant addition to our offerings focused on digital transformation.”

India's Digital Ecosystem and Future Potential

As India transitions to a digital-first economy, there are immense growth opportunities for investors. With only two out of the top ten companies in the Indian stock market being digital companies, Niket Shah, Chief Investment Officer at MOAMC, emphasized, "India is at a tipping point in the digital space. With only two out of the top ten stocks being digital, there’s ample room for growth."

The fund employs the QGLP (Quality, Growth, Longevity, and Price) framework, ensuring a disciplined investment strategy. Varun Sharma, Executive Group Vice President at MOAMC, noted the potential of the digital sector, saying, “With the digital ecosystem projected to grow to $900-$1000 billion by 2030, we anticipate substantial opportunities for investment in native digital companies.”

About Motilal Oswal Asset Management Company (MOAMC)

Motilal Oswal Asset Management Company (MOAMC) is a leading asset management firm in India. It is a subsidiary of Motilal Oswal Financial Services Ltd., a prominent financial services group. MOAMC offers a diverse range of investment products, including mutual funds, alternative investments, and portfolio management services.

Key features of MOAMC:

• Investment Philosophy: MOAMC follows a value-based investment approach, focusing on identifying undervalued stocks with strong fundamentals and growth potential.

• Product Range: The company offers a wide range of mutual fund schemes, catering to different investor profiles and risk appetites. These include equity funds, debt funds, hybrid funds, and index funds.

• Experienced Team: MOAMC has a team of experienced investment professionals with a proven track record in managing investments across various market conditions.

• Client-Centric Approach: The company prioritizes the needs of its clients and strives to provide them with personalized investment solutions and excellent customer service.

MOAMC's investment products include:

• Equity Funds: These funds invest primarily in equity stocks, aiming to generate capital appreciation over the long term.

• Debt Funds: These funds invest in debt securities, such as government bonds, corporate bonds, and commercial papers, with the objective of generating regular income.

• Hybrid Funds: These funds invest in a combination of equity and debt securities, offering a balance of risk and return.

• Index Funds: These funds track the performance of a specific market index, such as the Nifty 50 or Sensex.

MOAMC has a strong reputation for:

• Investment Performance: The company's funds have consistently delivered competitive returns over the years.

• Research and Analysis: MOAMC has a robust research team that provides in-depth analysis of companies and market trends.

• Risk Management: The company employs rigorous risk management practices to protect investors' capital.

Conclusion:

Motilal Oswal's launch of the Digital India Fund is timely, given India's rapid digital transformation. With a focus on high-growth sectors such as technology, telecom, media, and e-commerce, this fund offers investors an opportunity to benefit from the country's increasing digital penetration and expanding internet economy.

The fund’s alignment with India's digital adoption trends—such as rising internet usage, smartphone penetration, and UPI transaction volumes—demonstrates its potential for long-term growth. By employing a disciplined investment strategy based on the QGLP (Quality, Growth, Longevity, and Price) framework, the fund aims to capitalize on the evolving digital landscape, positioning itself as a key player in India’s tech-driven future.