Motilal Oswal MF launches multi-asset fund of funds spanning equity, debt, gold, silver and REITs

Motilal Oswal Mutual Fund (MOMF) has announced the launch of a new fund offer, the Motilal Oswal Multi Asset Omni Fund of Funds. It is an open-ended fund of funds scheme that will invest in equity-oriented schemes, debt-oriented schemes and gold and silver exchange traded funds (ETFs).

The fund aims to give investors exposure to different kinds of assets through a single product. The allocation among assets will be changed actively as market conditions shift. According to the company, the scheme combines equity, debt, gold, silver and REITs.

The fund runs on an asset allocation framework based on macro parameters, valuations and momentum indicators. The strategy includes selecting equity schemes that give access across different market capitalisations, actively managing exposure among the underlying schemes, holding debt-oriented schemes, and exposure to gold and silver ETFs. The underlying principle is that each asset class has distinct characteristics and may perform differently in different phases of the market.

The equity market is affected by broad economic conditions, corporate earnings, valuations, liquidity and market sentiment. The debt market is influenced by the interest rate cycle, inflation, policy decisions and credit spreads. Gold and silver prices are affected by the US dollar, real interest rates, geopolitical risk, industrial demand and supply. The performance of REITs depends on interest rates, rental income, occupancy levels in properties and investment demand. For this reason, the allocation can be changed in line with market conditions.

According to the scheme information document, the asset allocation will be as follows: a minimum of 95 per cent and a maximum of 100 per cent in units of MOMF's domestic equity-based schemes, debt-based schemes and gold and silver ETFs of all mutual funds. Within this, 10 to 80 per cent will go into units of MOMF's active equity-oriented schemes and/or ETFs or index funds. Units of active debt-oriented schemes of the relevant category and/or ETFs or index funds will also account for 10 to 80 per cent, as will units of gold and/or silver ETFs. Cash and cash equivalents fall under debt and money market instruments. Investors should refer to the scheme's SID for more details.

In multi-asset investing, each asset class has its own strengths in different market conditions. Equity offers the potential for capital growth, while debt offers scope for income in the form of interest. Gold and silver give exposure to precious metals. Gold is regarded as a potential store of value, while silver offers investment linked to industrial demand. REITs open a route into the real estate sector. The strategy is designed to bring these together and benefit from their different characteristics in a changing market.

The new fund offer (NFO) will be open from October 21, 2026 to November 4, 2026. The scheme's investment objective is to generate long-term capital appreciation by investing in a diversified portfolio of active and passive equity-oriented schemes, active and passive debt-oriented schemes and gold and silver ETFs, while drawing on the investment styles of the underlying funds. However, there is no guarantee that the scheme's objective will be achieved.

The benchmark is a blend of 60 per cent Nifty 500 TRI, 5 per cent domestic price of gold, 5 per cent domestic price of silver and 30 per cent Nifty Short Duration Debt Index. The scheme has been described as suitable for investors who want to grow capital over the long term by investing in equity-oriented schemes, debt-oriented schemes and gold and silver ETFs.

During the NFO and in the regular investment period after it, the minimum lumpsum investment will start at Rs 500, and then in multiples of Rs 1. Options of different frequencies are available for SIPs, details of which are in the SID. On exit load, redemption of units within 90 days of the date of allotment, or on the 90th day, will attract an exit load of 1 per cent. No exit load will be charged on redemption after 90 days.

An exit load will apply on switching to MOMF schemes. No load will apply on changing options within the scheme. It has been clarified that switching within the same scheme will also attract no exit load. Investors have been asked to refer to the SID for details of the load structure.

Ajay Khandelwal, fund manager at Motilal Oswal Asset Management Company, said: "Market conditions are constantly changing. In such a situation, investors can benefit from a disciplined investment approach rather than confining themselves to a single asset class. The Motilal Oswal Multi Asset Omni Fund of Funds brings equity, debt, gold, silver and REITs together through a single investment solution. The fund is backed by an active asset allocation framework."

He added: "The fund will seek to shape the allocation to changing markets by assessing broad economic conditions, valuations and indicators of market momentum, and to grow capital over the long term. Its aim is to give investors diversified exposure across asset classes while drawing on the investment strategies of the underlying schemes."