NFO Review: Motilal Oswal Equity Hybrid Fund – Will I Invest?

Motilal Oswal AMC has announced a New Fund Offer (NFO) of Motilal Oswal Equity Hybrid Fund. Let us review the NFO and see if it is suitable to invest-

The question is – Do we actually need a Hybrid fund NFO in form of Motilal Oswal Equity Hybrid Fund?

Motilal Oswal Equity Hybrid Fund

To know about the NFO – please see the scheme documents here

Now let us dig deeper into investment philosophy and fund manager’s performance to understand the Motilal Oswal Equity Hybrid Fund:

Motilal Oswal Equity Hybrid Fund

Read: AMFI Mutual Fund Summit 2018 – SEBI Chairman Has Tough Questions

Will I invest in Motilal Oswal Equity Hybrid Fund NFO?

Hybrid funds are the less risky than pure equity funds due to the stability added by the debt component. This feature makes these funds hugely popular among moderately conservative investors who want to take benefit of growth in equities but also want stable returns.

We do have a lot of hybrid funds in the market with Principal, Mirae, ICICI, Reliance and HDFC fund dominating the space, however this new Motilal Oswal fund offer a few additional distinctive features such as cash flow plan, QGLP based long-term investment philosophy and experienced fund managers.

This new fund would be the best option for the conservative/moderate conservative investors who are looking to ride the equity wave with stable returns.

The question still remains – do we really a new fund in the crowded hybrid space? Why should not I go for existing top fund which offer similar risk profile and returns with proven track record?

So, I would wait for the fund to establish itself in the market and analyze the holdings before investing.

This is just my personal review, posted for educational purpose. You should carefully consider your risk tolerance, time horizon, and financial objectives before making investment decisions. Consult your financial professional before making any investment decision.

 

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