Motilal Oswal MF announces new fund offer for contra scheme

Motilal Oswal Contra Fund NFO launches with a contrarian equity strategy, targeting undervalued stocks for long term capital appreciation.

By Anshul

Motilal Oswal Mutual Fund has announced the launch of the “Motilal Oswal Contra Fund”, an open-ended equity scheme that will follow a contrarian investment strategy.

The new fund offer (NFO) will open for subscription on May 8 and close on May 22.

The scheme aims to generate long-term capital appreciation by predominantly investing in equity and equity-related instruments using a contrarian approach. According to the fund house, the strategy seeks to identify companies that may currently be out of favour or temporarily undervalued, but have strong fundamentals and long-term turnaround potential.

The fund will benchmark its performance against the Nifty 500 Total Return Index.

A contrarian investment strategy generally involves investing against prevailing market trends, with the expectation that market mispricing or sentiment-driven dislocations may correct over time. The fund house said such an approach could help investors gain diversified exposure across sectors during different market cycles.

The minimum investment amount during the NFO period and on a continuous basis has been set at ₹500 and in multiples of ₹1 thereafter. An exit load of 1% will apply if units are redeemed within 365 days from the date of allotment, while no exit load will be charged after one year.

The scheme will be managed by Varun Sharma, Bhalchandra Shinde, Ankit Agarwal, Rakesh Shetty, and Swapnil Mayekar.

Commenting on the launch, Prateek Agrawal said market volatility and behavioural biases can create opportunities for contrarian investing over the long term.

Fund manager Bhalchandra Shinde said the fund would focus on a portfolio of 30–35 stocks with operating cashflows, valuations, and turnaround potential identified through research-driven analysis.

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