Motilal Oswal Quality Fund - Regular (G)

The Scheme adopts an active investment approach with the primary objective of generating long-term capital appreciation by investing predominantly in equity and equity-related securities. The investment strategy follows a Quality factor-based approach, with the objective of identifying businesses that exhibit strong and sustainable quality characteristics and further evaluated on growth prospects for security selection. The investment process begins with defining the eligible investment universe in accordance with the Scheme`s investment mandate. The Scheme then applies a combination of liquidity filters, qualitative and quantitative screening parameters to identify investible companies. Thereafter, a proprietary investment framework is used to evaluate companies based on their quality characteristics. The quality assessment may be derived using one or more factors, including return on capital, earnings quality, cash flow generation, balance sheet strength, capital allocation, corporate governance standards, profitability metrics and other relevant qualitative and quantitative indicators. Based on the output quality analysis, the fund manager undertakes a qualitative assessment considering prevailing market conditions, business fundamentals, growth prospects, longevity of competitive advantages, valuation, risk-reward dynamics and portfolio construction considerations to determine security selection and portfolio weights. The Scheme seeks to maintain exposure to companies demonstrating superior quality characteristics while ensuring that such businesses offer sustainable growth potential, enduring business franchises and reasonable valuations. The fund manager may also undertake opportunistic portfolio adjustments to optimize portfolio efficiency and enhance risk-adjusted returns. The Fund will be actively managed which may result in higher churn or turnover in the portfolio. During periods of adverse market conditions, elevated volatility, or based on the fund manager`s assessment, the Scheme may use equity and equity-related derivatives for hedging and portfolio risk management purposes, subject to the limits prescribed under applicable regulations. The investment strategy shall be reviewed periodically, and the portfolio shall be rebalanced at appropriate intervals to maintain the desired exposure in line with the Scheme`s investment objective. The qualitative and quantitative parameters forming part of the QGLP framework may be refined from time to time at the fund manager`s discretion to improve portfolio efficiency and optimize risk-adjusted returns, while remaining consistent with the Scheme`s investment objective. Stock Lending is lending of securities through an approved intermediary to a borrower under an agreement for a specified period with the condition that the borrower will return equivalent securities of the same type or class at the end of the specified period along with the corporate benefits accruing on the securities borrowed.