Motilal Oswal is one of the bigger and popular stock brokers active in the Indian market. It has floated an NFO (New Fund Offer) that presents an opportunity for the investor to buy the units at Rs 10, the face value. After the fund is launched, one has to buy it at its NAV (net asset value) that is expected to rise beyond its face value.
Explaining Laying bare the potential of the digital economy, Motilal Oswal management has pointed out to the fact that the internet economy and technology sector have expanded from $8-10 bn and 50-60 bn in 2010 to $155-175 bn and $320-360 bn in 2022. By 2030, the 2 sectors are projected to rise to $900-1,000 bn and $1,450-1,500 bn.
Motilal Oswal Digital India Fund key features
The Motilal Oswal Digital India Fund will be an open-ended equity-oriented mutual fund scheme that will invest in the digital space and focus on technology, telecom, media, entertainment and similar sectors.
The BSE Tech TRI will be the benchmark index for this fund. The minimum application money is Rs 500 and may go up in multiples of Re 1. An exit load of 1% will apply if units are redeemed within 3 months from the day of allotment. But after the expiry of 3 months, no exit load will be applicable.
Digitalisation to push production, consumption
“Rapid digitalisation is already benefiting a number of sectors. The pace of digitalisation can only increase in India. Some new sectors could also emerge due to the digitalisation drive that would push both production and consumption. The gains could be reflected in stock valuations,” Nilanjan Dey, director, Wishlist Capital told News9live.
Instrument to profit from digitalisation drive
“An investor who wants to ride the digitalisation trend would obviously require some investment vehicles for it. Mutual funds are well placed to offer such benefits to investors. I see significant traction in terms of new investments entering the market riding on the fact that funds like Motilal Oswal Digital India Fund are being floated,” added Dey.
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