Motilal Oswal Mutual Fund has launched a new investment option called the Motilal Oswal Contra Fund. This is an open-ended equity mutual fund based on a contrarian investment strategy.
The New Fund Offer (NFO) opened on May 8, 2026, and investors can invest in it until May 22, 2026.
At a time when the stock market is seeing rapid changes across sectors like banking, metals, and real estate, many investors find it difficult to identify the right opportunities. This is where a contra fund follows a different approach.
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What Makes This Contra Fund Different?
The fund focuses on companies and sectors that are currently ignored or less preferred by the market but may have strong growth potential in the future.
Instead of following market trends, the fund looks for hidden opportunities that could perform well over the long term.
The main aim of the fund is long-term capital appreciation. It is designed for investors who can stay invested despite market ups and downs and have an investment horizon of at least 3 to 5 years.
What is Contrarian Investing?
Contrarian investing means investing against current market sentiment.
In simple words, investors buy stocks that are undervalued or currently unpopular, expecting their value to improve over time.
The strategy mainly focuses on:
- Investing in undervalued stocks
- Identifying companies with turnaround potential
- Waiting patiently for long-term value creation
This approach can help investors benefit from market mispricing and changing market cycles.
Why Could This Fund Attract Investors?
The Motilal Oswal Contra Fund will focus on sectors and companies where growth opportunities may still be hidden.
The fund house believes sector leadership changes regularly during different market phases. The fund aims to identify these opportunities early through a research-driven and disciplined investment strategy.
According to the company, the portfolio will include strong businesses with attractive valuations, healthy cash flows, and turnaround potential.
Key Details Investors Should Know
- NFO Period: May 8, 2026 to May 22, 2026
- Benchmark Index: Nifty 500 Total Return Index
- Minimum Investment: ₹500
- Investment Goal: Long-term capital growth
Exit Load
- 1% charge if money is withdrawn within 1 year
- No exit load after 1 year
Who Should Consider This Fund?
This fund may suit investors who:
- Want to invest for the long term
- Understand stock market volatility
- Want better portfolio diversification
- Are comfortable waiting patiently for returns
What Fund Managers Say
According to Pratik Agarwal, market mispricing often happens because of investor behavior, and contrarian investing can help identify better opportunities during such phases.
Fund manager Bhalchandra Shinde said the fund plans to build a focused portfolio of around 30-35 high-conviction stocks.
The fund management team also includes:
- Varun Sharma
- Ankit Agarwal
- Rakesh Shetty
- Swapnil Maykar