Motilal Oswal Special Opportunities Fund: Provides exposure to special opportunities

Motilal Oswal Mutual Fund had launched an NFO, Motilal Oswal Special Opportunities Fund, a thematic fund which seeks to invest in companies that may benefit from evolving market themes. The NFO opened for subscription and closed on 8^th August. This article explains the concept of special opportunities in the investing context and provides information about Motilal Oswal Special Opportunities Fund.

What is a special situation?

Special opportunities refer to changes or developments which may affect the outlook of a sector or a company and, in certain cases, create potential investment opportunities.

Source: Motilal Oswal AMC, Internal. The above list is not exhaustive. Disclaimer: The above content is for informational purposes only and should not construed as investment advice or indicative of any scheme performance.

Each Special Opportunity is unique - Examples

• RERA implementation in 2016 marked a turning point in the real estate sector (see the graphic below)
  
  

  

  Source: Nifty Indices, MOAMC. Period: 29.12.2006 to 31.07.2025. Disclaimer: The above data / graph is used to explain the concept and is for illustration purpose only. It should not be used for development or implementation of any investment strategy. Past performance may or may not sustained in the future and is not a guarantee of future returns.



• Indian pharma companies capitalized on the patent cliff in the US, launching generics for widely prescribed high revenue drugs going off-patent, especially to regulated markets like US or EU. India emerged as global hub for cost-effective, high quality generics. Rising healthcare awareness, insurance penetration and chronic lifestyle diseases contributed to growing domestic demand
  
  

  

  Source: Nifty Indices, Period: 31.07.2005 to 31.07.2025. Disclaimer: The above graph / chart is for illustrative purposes only and does not constitute a stock recommendation. Past performance may or may not sustained in the future and does not indicate performance of any mutual fund scheme.

Why invest in special opportunities now?

• Production linked incentive schemes (PLI) garnered Rs 1.6 lakh crores in investments, Rs 14 crores in production, Rs 5.3 lakh crores in exports and generated 11.5 lakh jobs (Data: As on August 2024. Source: PIB, MOAMC Internal. Disclaimer: The above graph / chart is for informational purposes only and highlights policy related developments based on publicly available data. It should not be construed as investment advice or indicative of any scheme performance).


• Government capital expenditure reached INR 2.4 trillion, marking a 68% year-on-year increase and contributing around 23% of Central Government’s for FY25. This indicates that the sharp monthly slowdown in capex may have eased. For FY26, the Government has set a capex target of INR 11.2 trillion, implying a moderate growth of 6.5% year-on-year.
  
  

  

  Source: MOIE, MOAMC. Disclaimer: The above graph / chart is for informational purposes only and highlights macro-economic trend based on publicly available data. It does not constitute any investment advice and should not be construed as indicative of future performance of any mutual fund scheme



• Volatility can present attractive investment opportunities in sectors that are turning around or underperforming.
  
  

  

  Note: Telecom sector losses declined significantly from INR 126B to INR 29B. Source: Motilal Oswal MF Internal, as on 31^st May 2025. Disclaimer: The above graph / chart is for informational purposes only. Market volatility may or may not offer investment opportunities. This does not constitute any investment advice and should not be construed as indicative of future performance of any mutual fund scheme. The above mentioned sectors may or may not be part of the portfolio.



• India aspires to be a developed economy by 2047 becoming the second largest economy of the world.
  
  

  

  Source: Invest India, Davos India. Disclaimer: The above graph / section is for informational purposes only and highlights macro-economic or policy related developments based on publicly available data. This does not constitute any investment advice and should not be construed as indicative of future performance of any mutual fund scheme.

Government reforms to provide growth impetus

Source: MOFSL. Disclaimer: The above graph / sector is used to explain the concept and for illustration purpose only and should not be used for development or implementation of an investment strategy. Past performance may or may not be sustained in the future and future returns are not guaranteed and a loss of original capital may occur. Data as of Mar 25

Motilal Oswal Special Opportunities Fund - Disciplined Investing following "Q-G-L-P"

Source: MOFSL. Disclaimer: The above graph / sector is used to explain the concept and is for illustration purpose only and should not be used for development and or implementation of an investment strategy. Past performance may or may not be sustained in the future and future returns are not guaranteed and a loss of original capital may occur. Data as of Mar 25. The usage of Hi-Quality and Hi- Growth portfolios purely depicts Motilal Oswal AMC’s internal fund strategy / process which is based on quantitative and qualitative research parameters. THE QLGP strategy emphasizes investments in companies with a high quality of business and management, strong earnings growth potential, sustainable longevity and attractive price valuations. While these factors are considered when constructing the portfolio, there is no assurance that this approach will outperform the market or provide positive returns. The strategy is subject to market risks and may experience periods of underperformance.

Growth oriented themes that can be potential leaders in upcoming market cycle

Source: MOFSL. The above graph / sector is used to explain the concept and is for illustration purposes only and should not be used for development or implementation of an investment strategy. Note: The above sectors are mentioned purely for illustrative purposes. They may not represent actual investment strategy. Past performance may or may not be sustained in the future and future returns are not guaranteed and a loss of original capital may occur. Data as of Mar 25.

Why invest Motilal Oswal Special Opportunities Fund?

• Capital markets may take time to recognize the impact of disruptive and unanticipated changes.


• The fund aims to identify companies or sectors where market expectations and business outlook may diverge.


• Motilal Oswal Mutual Fund has experience in managing equity-oriented strategies across market cycles.

Who should invest in Motilal Oswal Special Opportunities Fund?

• Suitable for investors looking to achieve long term capital appreciation by investing in opportunities presented by special situations.


• Investors with long investment horizons


• Investors with very high risk appetites

Investors should consult with their financial advisors or mutual fund distributors if Motilal Oswal Special Opportunities Fund is suitable for their investment needs.

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