Aditya Birla Sun Life, Motilal Oswal bet big on factor investing, market events with fresh fund launches

Amid growing investor interest in thematic and factor-based equity strategies, two leading fund houses—Aditya Birla Sun Life Mutual Fund and Motilal Oswal Mutual Fund—have launched new fund offers (NFOs) that aim to capitalise on specialised market opportunities.

Aditya Birla Sun Life Mutual Fund has introduced two factor-based index funds: the Aditya Birla Sun Life BSE 500 Momentum 50 Index Fund and the Aditya Birla Sun Life BSE 500 Quality 50 Index Fund. Both NFOs opened for subscription on July 21 and will close on August 4, 2025.

The Momentum Index Fund tracks the BSE 500 Momentum 50 Total Return Index (TRI) and focuses on the top 50 stocks from the BSE 500 with the strongest price momentum. Meanwhile, the Quality Index Fund targets 50 companies from the same universe with stable earnings, high return on equity, and low debt levels.

“These twin fund launches are aimed at enabling investors to diversify their core equity portfolios with factor-based strategies that have shown strong performance across market cycles,” said A Balasubramanian, Managing Director and CEO of Aditya Birla Sun Life AMC. “While the Momentum Index offers exposure to higher-return opportunities in fast-growing segments, the Quality Index focuses on stocks with resilient earnings and a layer of stability against drawdowns.”

Priya Sridhar has been appointed as the fund manager for both schemes. The minimum initial investment during the NFO period is ₹500 and in multiples of ₹100 thereafter. SIPs can be started for as low as ₹500, with subsequent investments in multiples of ₹1. Both funds come with an exit load of 0.10% if redeemed or switched within 15 days of allotment; no exit load is applicable after that.

According to the AMC, the Momentum Fund suits investors with a high-risk appetite looking to ride market uptrends, while the Quality Fund is better aligned with those seeking long-term wealth creation through lower volatility and sound fundamentals. However, both funds are rated as “very high risk” on the risk-o-meter, and the AMC advises investors to consult their financial advisors before investing.

Meanwhile, Motilal Oswal Mutual Fund has launched its Motilal Oswal Special Opportunities Fund, an open-ended equity scheme focused on “special situations” such as corporate restructuring, policy reforms, M&As, and macroeconomic disruptions. The NFO is open from July 25 to August 8, and will re-open for continuous sale and repurchase on August 21, 2025.

The fund follows the house’s QGLP framework—investing in businesses that offer Quality, Growth, Longevity, and are available at a reasonable Price. It will adopt a high-conviction, actively managed approach across sectors impacted by special events.

“The fund is intended for investors seeking to benefit from evolving market dynamics driven by special situations like policy reforms and structural shifts,” said Prateek Agrawal, MD and CEO of Motilal Oswal AMC. Fund manager Ajay Khandelwal added that sectors like manufacturing, infrastructure, defence, hospitality, and IPO-bound firms are likely to throw up attractive opportunities.

The fund will be managed by a team including Ajay Khandelwal, Atul Mehra, Bhalchandra Shinde, Rakesh Shetty (debt), and Sunil Sawant (overseas securities). Its benchmark is the Nifty 500 TRI, and it is positioned for investors aiming for long-term capital appreciation by leveraging market transitions.

Together, the three new fund launches reflect a rising trend toward targeted, theme-based investing in India’s mutual fund space.