Motilal Oswal AMC announced the launch of an ethics-focused PMS strategy, the “Motilal Oswal Ethical Strategy”.
Ethical investing follows the principle of risk sharing which protects parties, and in turn society, from questionable social and financial practices, the company said in a statement. The strategy selects companies with low leverage ratios because interest-bearing transactions are restricted under ethical business guidelines.
According to the MAC, this strategy draws multiple parallels with ESG or environmental, social and governance investing because of its foundation of promoting social responsibility and value creation with an added layer of balance sheet screening and a low leverage.
Motilal Oswal Ethical Strategy takes investments of ₹50 lakhs and above as per PMS regulatory guidelines.
Vaibhav Agrawal, Portfolio Manager, Motilal Oswal Asset Management Company Ltd., said, “Motilal Oswal AMC is the only fund house in India with a documented investment process of QGLP (Quality, Growth, Longevity, Reasonable Price). In order to bring more financial inclusiveness to India, funds with new investment concepts are to be launched in the country. As an industry pioneer, we aim to institutionalize the concept of ethical investment in the country and thus launched the Motilal Oswal Ethical Strategy.”
Businesses that engage in alcohol, tobacco, gambling, gold and silver trading, banking and finance, pork related/non-vegetarian related businesses, advertising/media and entertainment/pornography are excluded, Agrawal added. “These industries may not fit the parameters of ethical investing for some communities and would not be appropriate investments for observant community investors,” he said.
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