The New Fund Offer (NFO) will be open for subscription from April 22, 2013 to May 6, 2013.
The fund seeks to achieve long term capital appreciation by investing in up to 25 companies with long term sustainable competitive advantage and growth potential.
The fund will invest in companies with enduring economic moats that will ensure long term franchise value and continued growth potential.
The idea of an economic moat refers to how likely a company is able to keep competitors at bay for an extended period. One of the keys to finding superior long-term investments is buying companies that will be able to stay one step ahead of their competitors.
The fund will be managed by Mr. Taher Badshah, Senior Vice President & Co-Head of Equities and Mr. Abhiroop Mukherjee Sr. Manager - Fixed Income of Motilal Oswal AMC.
About MOSt Focused 25 Fund
The fund focuses on three key aspects of investing, quality companies which offer long term growth. The fund will pursue a ‘Buy and Hold' Strategy and will generate good investment ideas aiming for superior returns through the construction of a focused, high conviction portfolio.
The fund will allocate minimum of 65% in top 200 companies of BSE/NSE and maximum of 25% in beyond top 200 but > Rs 1,400cr market capitalization & 10% in discretionary cash and equivalents.
The minimum investment amount during the NFO is Rs 10,000 and in multiples of Rs 1 thereafter. Minimum installment amount for SIP is Rs 1,000 and Rs 2,000 respectively for Monthly and Quarterly frequency and in multiples of Rs 1 thereafter.