Infrastructure Boom Beckons: Motilal Oswal's New Fund Eyes Long-Term Growth

Motilal Oswal Mutual Fund has come out with its newest offering, the Motilal Oswal Infrastructure Fund, an open-ended equity scheme meant to take advantage of India's infrastructure growth. The fund will be available for subscription until May 7, 2025, and is seeking to offer long-term capital appreciation by investing in firms directly or indirectly involved in infrastructure growth.

 

India's infrastructure industry has seen substantial growth, with government expenditure expected to grow by 7.4 percent in FY26. The fund aims to take advantage of the momentum by investing in sectors like roads, railways, housing, power, and digital infrastructure.

 

The investment approach is based on Motilal Oswal's QGLP philosophy, where quality businesses with high growth prospects, longevity, and reasonable pricing are targeted. The fund managers will evaluate companies on the basis of return on equity, return on capital employed, and valuation parameters such as price-to-earnings and discounted cash flow models.

 

While infrastructure funds have traditionally provided volatile returns, long-term investors have made handsome returns over long holding periods. Analysts caution that sectoral funds can be cyclical in nature, and newly offered funds have no historical performance track record. High-risk appetite investors with a long horizon could consider this fund, but systematic investment could be a wise strategy.

 

Sources: The Hindu BusinessLine, MSN Money, India Infoline, CNBC-TV18, Economic Times