Bengaluru: Motilal Oswal Mutual Fund has announced the launch of “Motilal Oswal Contra Fund”, a new open-ended equity scheme designed around a contra 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 investing primarily in equities 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 current market trends by identifying companies that may be currently undervalued or temporarily out of favor despite strong business fundamentals and long-term turnaround potential. This strategy attempts to profit from market inefficiencies and valuation gaps that arise during different phases of economic and market cycles.
According to the fund house, this strategy is particularly relevant in a market environment where regional leadership often shifts between industries such as banking, auto, metals and real estate. Motilal Oswal Contra Fund aims to identify such emerging opportunities early and create a diversified portfolio with long-term growth potential.
The minimum investment amount during the NFO period, as well as on an ongoing 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 charges an exit load of 1 per cent if the units are redeemed within 365 days from the date of allotment. No exit load will be applicable after one year. This burden will also apply to switches between schemes of the fund house, while switches within schemes of the same scheme will be exempted.
Commenting on the launch, Pratik Aggarwal said that market mispricing opportunities often arise due to behavioral biases and temporary market narratives. He said the fund is designed to identify companies with appropriate valuations and long-term growth potential through active management and diversified exposure across market capitalisation.
Bhalchandra Shinde said the plan will focus on building a high-conviction portfolio of 30 to 35 stocks with strong operating cash flows, attractive valuations and turnaround opportunities. He said the fund will follow a disciplined risk management and exit framework to manage downside risks in market cycles.
The fund will be managed by a team of Varun Sharma, Bhalchandra Shinde, Ankit Aggarwal, Rakesh Shetty and Swapnil Mayekar, who will handle the equity, debt and foreign investment components of the scheme.