Motilal Oswal Equity Mutual Fund schemes

Investment Objective

Motilal Oswal Equity Mutual Fund schemes funds aim to allow investors to grow their wealth over time. These funds primarily invest in equity and equity-related instruments in the proportion specified in the fund's scheme information documents. Following an in-depth analysis, the fund manager will select quality stocks to ensure that portfolio returns remain in line with expectations and category benchmarks. Capital appreciation occurs when the underlying stock prices rise over a given investment horizon. It also happens when the fund's declared dividends are reinvested to buy more scheme units. The Motilal Oswal Equity Mutual Fund performance does not guarantee that the investment objective will be met.

Risks Involved in Motilal Oswal Equity Mutual Fund

Motilal Oswal Equity Mutual Fund risk ranges between moderate to high against debt and balanced funds. The fund's value may fluctuate in response to changes in the underlying stock price. Stock market price and volume changes, interest rates, exchange rates, government policies, tax laws, and other economic developments may all have an impact on stock prices. The degree of risk is also determined by the degree of portfolio diversification. The best Motilal Oswal Equity Mutual Funds are based on sector/theme. Equity funds are more volatile in the market than diversified equity funds. Similarly, large-cap equity funds will be less risky than small-cap/mid-cap equity funds. Before investing in Motilal Oswal Equity Mutual Fund schemes, investors should consider their own risk tolerance.

Return Potential of Motilal Oswal Equity Mutual Fund

Returns are incidental to the risk that an investor takes. Motilal Oswal Equity Mutual Fund returns outperform debt and balanced funds. Historically, these funds have delivered average returns of around 12% over a 5-year period. However, Motilal Oswal Equity Mutual Fund performance may vary over time. Thus, Motilal Oswal Equity Mutual Fund returns are not guaranteed.

Who Should Invest in Motilal Oswal Equity Mutual Fund?

Motilal Oswal Equity Mutual Fund schemes are appropriate for investors seeking long-term capital appreciation over a 5-year or longer time horizon. Because the fund value fluctuates with market movements, these funds are intended for investors with a higher risk tolerance. Motilal Oswal Equity Mutual Fund return have a high potential, making them ideal for achieving long-term goals such as children's education, retirement planning, and home ownership. To realise the full potential of equity funds, you must remain invested for the duration of the investment horizon, which should be 10-12 years or longer. This also implies putting only surpluses in these funds that you will not need in the near future and are intended for long-term investments.

Things To Consider Before Investing in Motilal Oswal Equity Mutual Fund

The following things must be considered before investing in Motilal Oswal Equity Mutual fund schemes.

• Investment goal
• Time horizon
• Risk appetite
• Motilal Oswal Equity Mutual Fund NAV
• Expense Ratio

Tax on Motilal Oswal Equity Mutual Fund

Motilal Oswal Equity Mutual Funds have a portfolio exposure of 65% or more. Short-Term Capital Gains (STCG) are taxed at a rate of 15%. This does not pay any heed to your income tax bracket. The Long-Term Capital Gains (LTCG) enjoy a tax benefit of INR 1 lakh. Any gain beyond the limit is taxable at 10% without indexation.