Motilal Oswal Asset Management Company aims to raise ₹1,000- 1,200 crore through the new small-cap fund offering to be launched on Tuesday. This will be the first NFO of an actively managed fund to be launched by the fund house in the last four years.
Small-cap funds have received a net inflow of ₹5,000 crore monthly, and about Rs 2,200 crore flows through SIP. Aided by steady inflow and strong run-up in stock prices, the categorisation of small-cap stocks starts from ₹R20,000 crore compared to ₹10,000 crore a few months back.
Small-cap space has grown substantially, with companies having a market capitalisation of ₹20,000 crore as small-cap compared to Rs 10,000 crore a few months back.
The fund house already has good exposure to small-cap stocks, with almost 30-40 per cent of its multi-cap fund invested in small-cap stocks. The small-cap fund will have a portfolio of 30 stocks, and investors are advised to come with a ten-year investment horizon.
Navin Agarwal, MD, Motilal Oswal AMC, said overall, the company has a significant 22 per cent investment in the small segment and is committed to staying ahead of the curve to deliver innovative solutions to investors.
Prateek Agrawal, Executive Director, Motilal Oswal AMC, said the fund house is committed to value investing and believes in the power of active management to capitalise on emerging opportunities that have opened up due to India’s growing economy.
Ajay Khandelwal, Fund Manager, Motilal Oswal AMC, said in the last 2-3 years, there has been a huge surge in small-cap fund flows, and this trend indicates a structural shift in investor preferences.
With their agility and growth potential, small-caps have become a focal point for discerning investors looking beyond conventional avenues, he said.