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Motilal Oswal AMC launches Multi Asset Passive Fund of Funds – Should you invest?

From the context of tax implications, not like fairness taxation, given the present rules, each FoFs shall be taxed as debt devices.

Motilal Oswal Asset Management Company (AMC) has come out with two New Fund Offers (NFOs) – Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive, and Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative. The NFOs will stay open for subscription from February 19 to March 5, 2021, and the date of allotment is March 12.

With an ‘investor first’ philosophy, the nation’s first 100% passive multi asset FoFs from Motilal Oswal AMC will present allocations throughout Equity, International Equity, Fixed Income and Commodity, providing traders a possibility to take publicity in low-price and diversified belongings as per danger urge for food or funding purpose. Investors in search of a reasonable portfolio may make investments 50:50 in each funds. Both funds play on the benefit of investing into traditionally-low correlated asset lessons, in keeping with the company.



As per the company claims, what additionally units these funds other than most multi-asset and hybrid schemes is that they observe strategic rebalancing, eliminating market timing danger. There is not any fund supervisor danger or credit score danger concerned. The fairness portion (Nifty 500) additionally removes measurement and sector bias out of the portfolio because it captures 95%+ of whole fairness market.

From the context of tax implications, not like fairness taxation, given the present rules, each FoFs shall be taxed as debt devices. A protracted-time period investor who holds this fund may declare indexation advantages which considerably deliver down the general tax implication.

Explaining the reasoning and profit of funding in these funds, Pratik Oswal, Head-Passive Funds, Motilal Oswal Asset Management Company, mentioned, “In our endeavor to continuously simplify investing, we are launching to two passive multi-asset funds catering to two-risk profiles – aggressive and conservative. Customers opting for a moderate option could simply combine both funds (50:50). These FoFs offer a complete portfolio solution in a single fund with periodical rebalancing. With the thousands of investment options today – we believe this single fund is sufficient for an investor’s needs.”

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