NFO Alert: Motilal Oswal Consumption Fund Opens on October 1, 2025

The Motilal Oswal Consumption Fund, a newly launched open-ended equity scheme, is designed to capture India’s long-term consumption growth story. The New Fund Offer (NFO) opens on October 1, 2025 and closes on October 15, 2025. This thematic fund aims to generate long-term capital appreciation by investing in equity and equity-related securities of companies involved in consumption and allied sectors. Backed by India’s rising incomes, urbanisation, and demographic advantage, the fund seeks to tap into the country’s evolving spending habits, particularly luxury and discretionary consumption. With an actively managed portfolio based on Motilal Oswal’s QGLP framework, the fund intends to create a focused, high-quality investment strategy targeting sectors such as retail, automobiles, consumer durables, financial services, and digital enablers.

Key Features of Motilal Oswal Consumption Fund

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• Opening Date: October 1, 2025
• Closing Date: October 15, 2025
• Exit Load: NIL
• Minimum Investment Amount: ₹500

Objective of Motilal Oswal Consumption Fund

The primary objective of the Motilal Oswal Consumption Fund - Direct (G) is to deliver long-term capital appreciation by investing mainly in equity and equity-related instruments of companies operating within India’s consumption and consumption-related sectors.

Investment Strategy of Motilal Oswal Consumption Fund

• Focus on companies in sub-sectors with high growth potential, such as luxury and discretionary consumption.
• Invest across multiple industries, including automobiles, retail, textiles, durables, telecom, and healthcare.
• Adopt a bottom-up stock selection approach combined with a top-down view of the economy.
• Build a high-conviction portfolio guided by Motilal Oswal’s QGLP (Quality, Growth, Longevity, Price) framework.
• Flexibility to invest across market capitalisations and selectively in international equities.

Risks Associated with Motilal Oswal Consumption Fund

• Equity Risk: Market volatility can impact stock prices, leading to fluctuations in the fund’s NAV.
• Concentration Risk: Being a thematic fund, overexposure to consumption sectors may amplify losses if the sector underperforms.
• Liquidity Risk: Limited trading volumes or market events could restrict redemption options.
• Macroeconomic Risk: Policy changes, interest rate shifts, or global trade tensions may affect portfolio performance.
• Credit & Interest Rate Risk: Debt instruments, if included, may face default or sensitivity to rate changes.

Risk Mitigation Strategy by Motilal Oswal Consumption Fund

The Motilal Oswal Consumption Fund - Direct (G) seeks to mitigate risks through diversification across sub-sectors within the consumption theme, careful stock selection under the QGLP framework, and active monitoring of market conditions. By investing in both essential and discretionary consumption categories, the fund balances short-term volatility with long-term structural growth opportunities. Additionally, prudent allocation across market capitalisations and sectors helps reduce concentration risks, while liquidity considerations are managed through investing in well-traded securities.

What Type of Investor Should Invest in Motilal Oswal Consumption Fund?

• Investors seeking long-term capital appreciation through equity investments.
• Those comfortable with moderate to high risk due to the thematic focus.
• Investors are looking to benefit from India’s long-term consumption growth story.
• Suitable for individuals who can stay invested for at least 5 years or more.

Where Will the Motilal Oswal Consumption Fund Invest?

• Equity and equity-related securities of companies engaged in consumption and allied activities.
• Sub-sectors such as automobiles, retail, consumer durables, apparel, media, financial services, and telecom.
• Potential allocation to organised retail, lifestyle products, and digital platforms enabling consumption.
• Up to 20% in equities outside the consumption theme for diversification.