Bengaluru : Motilal Oswal Mutual Fund has announced the launch of the “Motilal Oswal Contra Fund,” a new open-ended equity scheme designed around a contrarian investment strategy. The New Fund Offer (NFO) opened on May 8, 2026, and will close on May 22, 2026.
The fund aims to generate long-term capital appreciation by predominantly investing in equity and equity-related instruments through a contrarian approach. The scheme will benchmark its performance against the Nifty 500 Total Return Index.
Contrarian investing typically involves investing against prevailing market trends by identifying companies that may currently be undervalued or temporarily out of favour despite having strong business fundamentals and long-term turnaround potential. The strategy seeks to benefit from market inefficiencies and valuation gaps that arise during different phases of economic and market cycles.
According to the fund house, the strategy is particularly relevant in a market environment where sectoral leadership frequently shifts between industries such as banking, auto, metals and real estate. The Motilal Oswal Contra Fund aims to identify such emerging opportunities early and build a diversified portfolio with long-term growth potential.
The minimum investment amount during the NFO period, as well as on a continuous basis after launch, has been fixed at ₹500 and in multiples of ₹1 thereafter. Additional investments can also be made starting from ₹500.
The scheme carries an exit load of 1 percent if units are redeemed within 365 days from the date of allotment. No exit load will be applicable after one year. The load will also apply to switches among schemes of the fund house, while switches within plans of the same scheme will remain exempt.
Commenting on the launch, Prateek Agrawal said market mispricing opportunities often arise due to behavioural biases and temporary market narratives. He noted that the fund is designed to identify companies with reasonable valuations and long-term growth potential through active management and diversified exposure across market capitalisations.
Bhalchandra Shinde said the scheme would focus on building a high-conviction portfolio of 30 to 35 stocks with strong operating cash flows, attractive valuations and turnaround opportunities. He added that the fund would follow a disciplined risk management and exit framework to manage downside risks across market cycles.
The fund will be managed by a team comprising Varun Sharma, Bhalchandra Shinde, Ankit Agarwal, Rakesh Shetty and Swapnil Mayekar, handling equity, debt and overseas investment components of the scheme.