Motilal Oswal Asset Management Company Limited has rolled out a new fund offer, the Motilal Oswal Quality Fund. Subscriptions open on 28 August 2026 and close on 11 September 2026. It is an open ended equity scheme built around a Quality Factor Theme.
The stated goal is long term capital appreciation, reached mainly by investing in equity picked through a quality factor process. At least 80% of the portfolio goes into companies that clear this screen, while the rest can sit in other equity instruments, money market tools and a small sliver of InvIT units.
For someone who wants exposure built around company fundamentals rather than a plain market-cap index, this launch is worth a look. It is benchmarked against the Nifty 200 Quality 30 Total Return Index, or TRI, which tracks total returns including dividends.
Motilal Oswal Quality Fund NFO details
Fund name | Motilal Oswal Quality Fund |
Fund type | Open ended equity scheme |
Category | Equity, Thematic Fund (Quality Factor Theme) |
Nature of scheme | Actively managed, follows a quality factor investment approach |
Benchmark | Nifty 200 Quality 30 TRI |
Fund managers | Ankit Agarwal, Varun Sharma, Ajay Khandelwal, Rakesh Shetty (debt component), Swapnil Mayekar (overseas component) |
NFO opens | 28 August 2026 |
NFO closes | 11 September 2026 |
Allotment | Within 5 working days of NFO closure (as per the SID) |
Minimum investment | Rs 500, and in multiples of Re 1 thereafter |
Additional investment | Rs 500, and in multiples of Re 1 thereafter |
SIP amount | Rs 100 for a daily SIP up to Rs 6,000 for an annual SIP, depending on frequency |
NAV | Rs 10 per unit during the NFO |
Stamp duty | 0.005% of the transaction value |
Entry load | Not available |
Exit load | 1% if redeemed within 90 days of allotment, nil after that |
Motilal Oswal Asset Management Company details
AMC name | Motilal Oswal Asset Management Company Limited |
Website | |
Registered office | 10th Floor, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai 400025 |
Contact number | +91 8108622222 / +91 22 40548002 |
Assets under management | Not available |
Source: AMFI India, New fund offer
What has Motilal Oswal launched with this NFO?
Motilal Oswal Quality Fund is an actively managed equity scheme that can invest across the market, not just large caps. Rather than tracking an index, the fund manager builds the portfolio around one idea: buy businesses that show quality.
That quality label comes from measures the fund’s internal framework tracks, including return on capital, earnings quality, cash flow, balance sheet strength, capital allocation and governance. Companies that score well make it into the eligible universe, and the manager picks and weights holdings from there.
Because it is actively managed, the portfolio can change as the manager’s read on a company’s quality shifts, unlike an index fund, which simply mirrors a fixed list of stocks.
How does the Motilal Oswal Quality Fund strategy work?
The process runs in stages, from a broad universe of listed companies down to a focused, quality-weighted portfolio.
Step | What happens? |
1 | Define the eligible universe from listed Indian equities |
2 | Apply liquidity filters and basic screening rules |
3 | Score companies on return on capital, earnings quality, cash flow, balance sheet strength and governance |
4 | Add a qualitative overlay on growth prospects, valuation and competitive position |
5 | Build the portfolio, weighting toward stronger quality scores |
6 | Use derivatives only for hedging, within regulatory limits |
7 | Review and rebalance periodically to stay true to the quality mandate |
Let’s understand the Motilal Oswal Quality Fund approach through an example
Say two companies operate in the same industry. Company A has grown profits steadily, carries little debt and converts earnings into free cash. Company B has choppy earnings and leans heavily on borrowed money.
The fund’s quality screen would tilt toward Company A, even if Company B looked cheaper on price alone. This only illustrates how the fund picks holdings, not which stock might perform better, since no fund can promise outcomes.
Motilal Oswal Quality Fund portfolio allocation
The scheme’s asset allocation is weighted heavily toward the quality-screened equity sleeve.
Instrument | Minimum | Maximum |
Equity picked via the quality factor screen | 80% | 100% |
Other equity and equity related instruments | 0% | 20% |
Money market instruments, other liquid instruments and mutual fund units | 0% | 20% |
Units of InvITs | 0% | 10% |
Motilal Oswal Quality Fund investment strategy
This is an actively managed fund, so security selection sits at the centre of the strategy. The manager weighs growth prospects, valuation and how durable a company’s edge looks, not just its quality score.
Portfolio construction favours resilient businesses at reasonable valuations over the cheapest stocks on paper or the fastest recent movers. The fund can use derivatives only for hedging, within SEBI’s limits.
Because the approach is active, churn can run higher than in a passive fund as the manager’s read on quality shifts.
Potential benefits of Motilal Oswal Quality Fund
Quality-first stock picking | Focuses on fundamentals like capital efficiency and earnings quality, not price momentum |
Broad market-cap universe | Not confined to large caps, so the fund can look for quality names anywhere |
Active management | Holdings can change as a company’s quality profile changes, unlike a fixed index |
Diversification role | Adds a factor-based sleeve to a portfolio built mainly on index or flexi-cap funds |
Who may consider Motilal Oswal Quality Fund?
Investors with a five-year-plus horizon | Factor strategies typically need a full market cycle or more to play out |
Investors who already hold index or flexi-cap funds | A quality tilt adds a different flavour without duplicating holdings |
Investors comfortable with active management | Outcomes depend on the manager’s quality framework, not just market direction |
Who may not find Motilal Oswal Quality Fund suitable?
Investors with short-term liquidity needs | An exit load applies for 90 days, and equity markets can move sharply over short periods |
Investors who prefer pure passive exposure | This fund is actively managed and does not track an index |
Investors who already hold multiple quality or factor funds | Adding another may lead to overlap across the portfolio |
Motilal Oswal Quality Fund compared with traditional investment options
Option | Return potential | Cash access | Horizon | Suited for |
Fixed Deposit | Fixed, pre-declared | Early exit, with a charge | Flexible | Predictable payouts |
Debt Mutual Fund | Tied to interest rates | Easy, open-ended | Short to medium term | Flexible parking, over an FD |
Hybrid Fund | Mix of equity and debt | Easy, open-ended | Medium term | Blended equity-debt in one fund |
Equity Mutual Fund | Tied to equity markets | Easy, open-ended | Long term | Core long-term equity exposure |
Motilal Oswal Quality Fund | Tied to quality-screened companies | Easy, load in first 90 days | Long term | Factor sleeve beside core equity |
Motilal Oswal Quality Fund review by Zenith Finserve
Motilal Oswal Quality Fund fits an investor building toward a goal at least five years away, wanting a factor-based sleeve beside core index or flexi-cap holdings, not a first equity fund. Its case rests on the alpha a well-run quality screen can add over a plain index, depending on execution and market conditions.
It works best as a satellite holding, not a sole equity investment. Someone with no other equity exposure is better served starting with a broader diversified fund, then layering in a factor tilt later.
The fund is new and has no track record, so weigh it against your own goals, time horizon and portfolio before committing. Zenith Finserve’s mutual fund advisory desk can help place it within a broader plan.
How Zenith Finserve can help
At Zenith Finserve, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments.
We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Similar NFOs on Zenith Finserve
Bandhan Contra Fund NFO: another actively managed equity NFO, built around a contrarian, value-leaning style rather than a quality screen.
WhiteOak Capital Dividend Yield Fund NFO: an active equity fund organised around a dividend yield factor instead of quality metrics.
TRUSTMF Large & Mid Cap Fund NFO: an active equity NFO defined by market-cap segment rather than a specific investment factor.
Frequently asked questions on Motilal Oswal Quality Fund
What is Motilal Oswal Quality Fund?
It is a new open ended equity scheme from Motilal Oswal that invests in companies selected using a quality factor based approach, benchmarked against the Nifty 200 Quality 30 TRI.
When does the Motilal Oswal Quality Fund NFO open and close?
The NFO opens on 28 August 2026 and closes on 11 September 2026.
What is the minimum investment in Motilal Oswal Quality Fund NFO?
Rs 500 for a lumpsum investment, and in multiples of Re 1 thereafter. SIP minimums vary by frequency, starting at Rs 100 for a daily SIP.
What is the NFO price of Motilal Oswal Quality Fund?
Units are offered at Rs 10 per unit during the NFO period.
Who manages Motilal Oswal Quality Fund?
Ankit Agarwal, Varun Sharma and Ajay Khandelwal handle equity, Rakesh Shetty the debt component, and Swapnil Mayekar the overseas component.
What is the benchmark for Motilal Oswal Quality Fund?
The fund is benchmarked against the Nifty 200 Quality 30 Total Return Index (TRI).
Is Motilal Oswal Quality Fund NFO good to invest in?
That depends on your goals, time horizon and existing portfolio. It is worth evaluating alongside a financial advisor rather than deciding on the NFO alone.
What does Motilal Oswal Quality Fund invest in?
At least 80% goes into equity selected via the quality factor screen, with the rest spread across other equity instruments, money market tools and InvIT units.
Is there a lock-in period for Motilal Oswal Quality Fund?
No. It is an open ended scheme with no lock-in, though an exit load applies within the first 90 days.
What is the exit load on Motilal Oswal Quality Fund?
1% if units are redeemed within 90 days of allotment, and nil after that.
Can I start a SIP in Motilal Oswal Quality Fund?
Yes. SIP options are available across daily, weekly, fortnightly, monthly, quarterly and annual frequencies once the scheme reopens after the NFO.
How is Motilal Oswal Quality Fund different from an index fund?
It is actively managed. The fund manager selects and weights stocks using a quality framework, rather than mechanically replicating a fixed index.
