New Digital India Fund by Motilal Oswal Targets Long-Term Growth in Technology
The Motilal Oswal Asset Management has launched a new fund offer, Motilal Oswal Digital India Fund, which is targeting the rapid growth of the digital economy in India. This fund is open for subscription till 25th October 2024.
This open-ended equity scheme is designed for investors who would like to benefit from growth prospects in sectors like technology, telecommunications, media, and entertainment that together are poised to drive the next phase of India’s digital revolution.
Motilal Oswal Digital India Fund shall focus on long-term capital growth by investing in companies heavily reliant on or leveraging digital technologies. The portfolio shall comprise hardware, software, telecommunication, media, and e-commerce businesses well-positioned to benefit from digitization. The investment approach shall identify high-growth enterprises with high potential for future performance.
The scheme will be benchmarked against the BSE Teck Total Return Index. The portfolio of the scheme would be concentrated, focusing on quality companies with an eye towards evolving into the future. This is a prudent strategy led by a framework of Quality, Growth, Longevity, and Price (QGLP), thus establishing a well-structured way to invest.
India Digital Adoption and Growth
India ranks among the global elite as far as the adoption of digital is concerned, according to Motilal Oswal Asset Management. That is, India stands out in the most preferred list of a few key parameters. Some of these statistics include the following:
1. Internet Penetration: Internet access has risen fourfold since 2014 and is expected to become one billion by 2025.
2. Smartphone Users: The number of smartphone users has grown thirty-fold since 2010, crossing 1,013 million.
3. UPI Users: More than 350 million users are digitally engaged in transactions with a total amount of INR 144 billion recorded as of July 2024.
The internet economy of India will be expected to grow exponentially because the trends are likely to mimic the same experiences in such countries as the United States and China. Business growth becomes the necessary component of a successful investment, and Motilal Oswal Digital India Fund will cash in on this trend by building up on digital transformation.
Currently, only two companies out of the top ten operating within India are categorized under the digital space; therefore, the potential for growth is gigantic. The digital ecosystem in India is likely to touch between $900 billion and $1,000 billion by 2030, so it will provide huge opportunities for investments, especially in companies that are essentially born digital.
It would help investors gain exposure to the growing sectors within India’s digital landscape, and the disciplined investment approach will aim to deliver long-term capital appreciation. This, therefore, marks the increase in confidence in the digital economy in India and the opportunity for investors to benefit from this particular transformational phase.
Motilal Oswal Digital India Fund is quite poised to take its share of such future growths and thereby offer an opportunity for participation in the progress India is making in digital.
