Motilal Oswal Asset Management Company (MOAMC) has introduced a new fund offer, the Motilal Oswal Digital India Fund. This open-ended equity scheme aims to provide investors with the opportunity to capitalize on the growth potential of the digital sector, with a focus on technology, telecom, media, and entertainment. Interested investors can subscribe to the NFO until October 25, 2024.
Investors seeking long-term capital appreciation in the digital space may find this fund beneficial. The fund’s primary objective is to achieve a long-term capital growth by investing in digital and technology companies, including those in software, hardware, e-commerce, telecom, media, and related industries.
The fund is benchmarked against the BSE Teck Total Return Index and is designed for individuals looking to leverage the growth opportunities within the digital and technology sectors.
The fund employs a focused portfolio strategy utilizing the Quality, Growth, Longevity, and Price (QGLP) framework. Risk management techniques are integrated to ensure consistent performance. The fund managers carefully evaluate stock weightage, sector distribution, and diversification strategies to make informed investment decisions based on data analysis.
The riskometer rating for the Motilal Oswal Digital India Fund indicates a “very high” level of risk. This makes the fund suitable for investors who are comfortable with taking on higher levels of risk in exchange for the potential of long-term capital growth, particularly through investments in the digital and technology sectors.
“India is poised to lead the global digital infrastructure space, with e-retail penetration projected to hit 10% by 2027. Despite this, the representation of tech stocks in India’s market remains relatively low compared to global standards, signalling a significant opportunity for growth”, Niket Shah, Chief Investment Officer at Motilal Oswal AMC said.
Based on internal research conducted by MOAMC, it has been observed that India’s digital landscape is rapidly expanding.
Approximately 38% of individuals in rural areas of India are now utilizing digital payment methods.
On average, an Indian spends around 6 hours and 45 minutes online each day.
Various sectors including e-commerce, SaaS, fintech, food tech, and digital logistics have experienced notable growth in recent times.
Varun Sharma, Executive Group Vice President of MOAMC, expressed confidence in the solid foundation of India’s digital ecosystem. He anticipates significant growth for native digital companies spanning industries such as e-commerce, fintech, and health tech. The overall digital ecosystem is projected to reach a valuation of $900-$1000 billion by the year 2030, an increase from the current estimate of $155-175 billion.
The fund is managed by a team of seasoned professionals:
Niket Shah, Chief Investment Officer and Fund Manager
Ajay Khandelwal, Fund Manager
Santosh Singh, Fund Manager
Atul Mehra, Fund Manager
Rakesh Shetty, Fund Manager (Debt Component)
Sunil Sawant, Fund Manager (Overseas Component)