NFO Alert! Motilal Oswal MF launches contra fund: Who should invest?

Motilal Oswal Contra Fund is suitable for investors seeking capital appreciation over the long term and investing predominantly in equity or equity-related investments through a contrarian strategy

Motilal Oswal Contra Fund: Motilal Oswal Mutual Fund has announced the launch of Motilal Oswal Contra Fund, an open-ended equity scheme following a contrarian investment strategy. 

 

The new fund offer (NFO) will open for public subscription on Friday, May 8, and close on May 22, 2026. 

 

According to the fund house, it aims to achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments through a contrarian strategy. However, there is no assurance that the investment objective of the scheme will be achieved.

 

Prateek Agrawal, managing director and chief executive officer at Motilal Oswal Asset Management Company (MOAMC), said market mispricings often persist due to behavioural biases and structural factors and during periods marked by volatility, a contrarian strategy helps look beyond temporarily prevailing narratives and focuses on long-term business fundamentals.

 

 

"The Motilal Oswal Contra Fund is designed to identify these early signals and opportunities and invest in companies with relatively reasonable valuations. We maintain a high-conviction, actively managed exposure, diversified across market capitalisations, to benefit patient investors who are willing to stay invested over a full market cycle of three to five years, for true portfolio diversification,” he added.

 

The minimum investment amount during the NFO and on a continuous basis is ₹500, with additional investments also allowed from ₹500, in multiples of ₹1 thereafter.

 

If units are redeemed within 365 days from the date of allotment, an exit load of 1 per cent will be charged. However, no exit load will apply if units are redeemed after 365 days.

 

Exit load will also apply in case of switches between schemes of MOMF, but there will be no exit load for switching between options within the same scheme or between plans within the same scheme.

 

The fund will be managed by Varun Sharma, Bhalchandra Shinde, and Ankit Agarwal for the equity portion, Rakesh Shetty for the debt component, and Swapnil Mayekar for overseas investments.

Motilal Oswal Contra Fund: Who should invest?

According to Motilal Oswal MF, the product is suitable for investors seeking capital appreciation over the long term and investing predominantly in equity or equity-related investments through a contrarian strategy.

 

According to the riskometer, the principal investor in this scheme will be at very high risk. 

 

However, investors should consult their financial advisors if in doubt about whether the product is suitable for them.