Motilal Oswal Asset Management Company Ltd. (MOAMC) is a public limited company incorporated under the Companies Act, 1956 on November 14, 2008, having its Registered Office at 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai - 400025.
Motilal Oswal Asset Management Company Ltd. has been appointed as the Investment Manager to Motilal Oswal Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 21, 2009, executed between Motilal Oswal Trustee Company Ltd. and Motilal Oswal Asset Management Company Ltd.
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NAV
MOSt Focused Dynamic Equity - Direct Plan – Annually Dividend - 10.7471MOSt Focused Dynamic Equity - Direct Plan – Quarterly Dividend - 10.7471MOSt Focused Dynamic Equity - Regular Plan – Annually Dividend - 10.6775MOSt Focused Dynamic Equity - Regular Plan – Quarterly Dividend - 10.6775MOSt Focused 25 Fund- Direct Plan (D) - 16.8789MOSt Focused 25 Fund- Direct Plan (G) - 19.466MOSt Focused 25 Fund-(D) - 15.9292MOSt Focused 25 Fund-(G) - 18.4291MOSt Focused Long Term (D) - 14.6324MOSt Focused Long Term (G) - 14.6324MOSt Focused Long Term- Direct Plan(D) - 15.0915MOSt Focused Long Term- Direct Plan(G) - 15.0915MOSt Focused Midcap 30- Direct Plan(D) - 22.4293MOSt Focused Midcap 30- Direct Plan(G) - 24.9756MOSt Focused Midcap 30(D) - 21.5575MOSt Focused Midcap 30(G) - 24.0563MOSt Focused Multicap 35- Direct Plan(D) - 23.1442MOSt Focused Multicap 35- Direct Plan(G) - 23.1442MOSt Focused Multicap 35(D) - 22.4948MOSt Focused Multicap 35(G) - 22.4948MOSt Ultra Short Term Bond Fund-Direct Plan-Fortnightly Dividend Option - 10.0145MOSt Ultra Short Term Bond Fund-Direct Plan-Monthly Dividend Option - 10.0372MOSt Ultra Short Term Bond Fund-Direct Plan-Quarterly Dividend Option - 10.1578MOSt Ultra Short Term Bond Fund-Direct Plan-Weekly Dividend Option - 10.0092MOSt Ultra Short Term Bond Fund-Regular Plan-Fortnightly Dividend Option - 10.0132MOSt Ultra Short Term Bond Fund-Direct Plan- Growth - 12.9431MOSt Ultra Short Term Bond Fund-Direct Plan-Daily Dividend Option - 9.9997MOSt Ultra Short Term Bond Fund-Regular Plan- Growth - 12.6756MOSt Ultra Short Term Bond Fund-Regular Plan-Daily Dividend Option - 10.0074MOSt Ultra Short Term Bond Fund-Regular Plan-Monthly Dividend Payout - 10.0341MOSt Ultra Short Term Bond Fund-Regular Plan-Quarterly Dividend Payout - 10.1517MOSt Ultra Short Term Bond Fund-Regular Plan-Weekly Dividend Option - 10.0098Motilal Oswal Most Focused Dyn Eq Fund (G) - 10.6775Motilal Oswal Most Focused Dyn Eq Fund-Dir (G) - 10.7471

Buy Right, Sit Tight

Knowledge Center Buy Right Sit Tight

Buying quality companies and riding their growth cycle

Motilal Oswal AMC

Motilal Oswal Asset Management Company (MOAMC) is one of India's fastest growing asset management companies.

With a focus on equity investing and equity investment expertise inherited from over 30 years of capital markets experience of our sponsors Motilal Oswal Securities Ltd., we have created a single investing philosophy that drives all our equity products; be it Mutual Fund (MF) or Portfolio Management Services (PMS).

Like our investing philosophy, our product basket is also focused with concentrated 'buy and hold' PMS Strategies and Mutual Fund schemes in the Large Cap, Midcap and Multicap space respectively.

Our  Value Strategy is one of the longest running products in PMS with a track record of 13 years. And our MF offerings come with unique features such as “No Load”, “Low Churn” and “Focused” portfolios.

With an investment management team of 18; we aim to be seen as an investment management house focused on wholesaling through marquee distribution platforms and strong relationships, backed by performance track record.



Buy Right : Sit Tight

Our Investment Philosophy

At Motilal Oswal Asset Management Company (MOAMC), our investment philosophy is centered on two critical pillars of equity investing – 'Buy Right: Sit Tight'. 'Buy Right' means buying quality companies at a reasonable price and 'Sit Tight' means staying invested in them for a long time to realise the full growth potential of the stocks.


Process2Performance

Data as on Dec 31, 2016* | Data as on Feb 28, 2017#
Past performance may or may not be sustained in future.
 
Buy Right

How do we 'Buy Right' ?

Over the last 19 years, our chairman, Raamdeo Agrawal (one of India's foremost value investors) has been analyzing the Indian equity market to come up with investing insights in the form of the Annual Motilal Oswal Wealth Creation Study. The learnings from all these studies have helped us evolve a unique and focused investing process  - 'QGLP'.

Every stock we buy in our Mutual Fund Schemes or PMS Strategies is based on our QGLP parameters.

Performance of QGLP stocks

Here are a few more examples that show how QGLP stocks have fared in terms of compounded annual growth return (CAGR) over the last 20 years or since listing; whichever is later.

The Stocks mentioned herein are used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy. It should not be construed as investment advice to any party. The stocks may or may not be part of our portfolio/strategy/ schemes. Past performance may or may not be sustained in future.

Source: Capitaline | Data as on Feb 28, 2017


Sit Tight

How do we 'Sit Tight' ?

While Buying Right is all about following a process, Sitting Tight on a good buy requires Focus & Discipline.

Buy and Hold: We believe in focused stock portfolios and are strictly buy and hold investors and believe that while picking the right business needs skill; holding onto these businesses to enable our investors to benefit from the entire growth cycle needs even more skill.

Focus: Our portfolios are high conviction portfolios with 20 to 25 stocks being our ideal number. We believe in adequate diversification as over-diversification results in diluting returns for our investors and adding market risk.


Buy & Hold

If you had invested Rs. 100 in the Sensex in 1979, your investment would have multiplied to Rs. 2,625 with dividend and to Rs. 1,493 without dividend.


Source: Bloomberg | Data as on Feb 28, 2017

The graph above is used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy. It should not be construed as investment advice to any party. The above figures are inflation adjusted.


Focused Portfolio

Diversification beyond your control becomes unmanageable and adds no value to your portfolio. Over diversification can impact the overall performance of your portfolio. As in case of most portfolios, the top 5 good quality stocks contribute 80% of overall performance of your portfolio while the rest 20% is contributed by bad quality stocks.




Q


Quality

"Great companies to invest are like wonderful castles, surrounded by deep, dangerous moats where the leader inside is an honest and decent person. Preferably, the castle gets its strength from the genius inside; the moat is permanent and acts as a powerful deterrent to those considering an attack; and inside, the leader makes gold but doesn't keep it all for himself.”  



There are two aspects to Q: (1) Quality of business and (2) Quality of management. The relationship between the two is multiplicative and not additive. Thus, if one of the aspects is zero, Q will be equal to zero, no matter how high the other.
Quality is a subjective concept, and yet there are several objective indicators of the same, as listed below:

Q INDICATORS


G


Growth

"Growth creates value only when it takes place within the limits of a strong and sustainable company franchise, and these are rare.” 



In investing, there are two dimensions of growth: (1) Earnings growth and (2) Valuation growth. The G of QGLP addresses earnings growth, whereas the P(rice) takes care of the Valuation growth.

Earnings growth by itself doesn't mean much. It adds value only when the company earns returns on capital higher than the cost of capital. Hence, growth is simply an amplifier: good when returns exceed the cost of capital, bad when returns are below the cost of capital, and neutral when returns equal the cost of capital.


In the final analysis, G (i.e. earnings growth in a company) is a quantitative reflection of Q (i.e. quality of business and management). G has four dimensions:
  1. Volume growth - a function of demand growth matched by company's capacity to supply
  2. Price growth - a function of company's pricing power, which in turn is a function of the competitive landscape
  3. Operating leverage - a function of the company's operating cost structure. Higher the fixed cost, lower the unit cost incidence and higher the operating leverage
  4. Financial Leverage - a function of capital structure. Higher the debt-equity, higher the financial leverage and vice versa



L


Longevity

"We like great companies with dominant positions, whose franchise is hard to duplicate and has tremendous staying power or some permanence to it.”  


Having established the present quality and earnings growth of the company, the next challenge to investors is assessing how long it can sustain both. In the context of longevity, competence of management is tested at two levels:
 (1) Extending CAP (i.e. Competitive Advantage Period), and
 (2) Delaying growth slowdown.

Extending CAP: Competitive Advantage Period (CAP) is the time during which a company generates returns on investment that exceed its cost of capital. Competition eventually drives down returns to cost of capital, and sometimes even below it. However, a company with a great business and great management keeps extending its CAP, sustaining high return both for itself and its equity investors.

Delaying growth slowdown: Competent managements can delay growth slowdown by
(1) new streams of organic growth, and/or
(2) inorganic growth via judicious acquisitions.


P

Price

"In the Bible, it says that love covers a multitude of sins. Well, in the investing field, price covers a multitude of mistakes. For human beings, there is no substitute for love. For investing there is no substitute for paying the right price – absolutely none.”



Growth in stock price is a multiplicative function of growth in earnings and growth in valuation. The simplest way to improve the odds of valuation growth is by ensuring favourable purchase price.
The price of a stock has to be seen in conjunction with the value it offers. Price is what we pay; value is what we get. Therefore, stock prices are attractive only when they are less than the value perceived in the stock.
A simple rule of thumb of favourable purchase price is low P/E, preferably single-digit. However, in certain situations, low P/E may not be the sole determinant of favourable price e.g. during bottom-of-the-cycle, earnings of cyclical stocks are depressed leading to high P/Es; likewise, where companies are expected to turn from loss to profit, current P/E cannot be calculated.




Mutual Funds

For whom: Our equity expertise can be accessed by individual investors with an approach to long term savings through our Mutual Fund products for as low as Rs. 500 through a systematic investment plan (SIP).
Benefits: Our Mutual Fund Schemes pass through a rigorous investment process with an aim to deliver consistent performance. Investments in the Schemes can also be conveniently done online. As an investment house, since we have only one investment philosophy, we aim to keep life simple for us and our investors by having a focused menu of equity funds – one large cap, one midcap, one multicap, one tax saver fund and one dynamic fund.

Our Funds
MOSt Focused 25
Invests in enduring wealth creators

MOSt Focused Midcap 30
Invests in emerging wealth creators

MOSt Focused Multicap 35
Invests in emerging and enduring wealth creators

MOSt Focused Long Term
Lock in fund that invests in wealth creators plus saves tax 

MOSt Focused Dynamic Equity
Invest in equity, derivatives and debt instruments


Benefits of our Funds



Portfolio Management Services


For whom: Our PMS products are meant for financially savvy high net worth individuals (HNIs) who wish to utilise our expertise in building a portfolio of high quality companies or who have a large portfolio of stocks but lack the bandwidth to monitor them.

Benefits: With our Portfolio Management Services one can build an equity portfolio in the large cap and midcap segment with highly personalized service. Also, the 'Buy Right : Sit Tight' approach results in low churn in our portfolios and makes the costing of our Portfolio Management Services very attractive.


Our Strategies
Value Strategy
Concentrated large cap portfolio with only 15-20 stocks

Next Trillion Dollar Opportunity Strategy
Concentrated midcap portfolio with only 20-25 stocks

India Opportunity Portfolio Strategy
Concentrated multicap portfolio with only 15-20 stocks


Benefits of our Strategies




Large Cap Fund

Motilal Oswal MOSt Focused 25 Fund


Investment Objective: The investment objective of the Scheme is to achieve long term capital appreciation by investing in upto 25 companies with long term sustainable competitive advantage and growth potential. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

Type of Scheme: An Open Ended Equity Scheme
Benchmark: Nifty 50  Index
Entry / Exit Load: Nil


Performance (As on Dec 31, 2016)

NAV per unit: Rs.16.3638 (31-Dec-2016); Rs.15.9130 (31-Dec-2015); Rs.15.0269 (31-Dec-2014); Rs.10.4183 (31-Dec-2013); Rs.10.0000 (13-May-2013). Inception date: May 13, 2013. Data as on 31-Dec-2016. Returns for one year are absolute. Returns for more than one year are compounded annualized; Incase, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of returns. Date of inception is deemed to be date of allotment. Past performance may or may not be sustained in the future.


Fund Manager
Mr. Siddharth Bothra (Fund Manager)- He has a rich experience of more than 15 years in the field of research and investments. He has been managing this fund since 23-Nov-2016

Mr. Gautam Sinha Roy - (Co-Fund Manager)- He has close to 13 years of experience in fund manage-ment and investment research. He has been co-managing this fund since 26-Dec-2016

SIP Performance (As on Dec 31, 2016)

Inception date: May 13, 2013.

Returns for one year are absolute. Returns for more than one year are compounded annualized. For SIP returns, monthly investment of Rs. 10000/- invested on the 1st day of every month has been considered. Past performance may or may not be sustained in the future.


Top 10 Holdings*

All the Returns shown above are of Regular Plan Growth Option

Sector Allocation*

Industry classification as recommended by AMFI
Data as on Feb 28, 2017

Midcap Fund

Motilal Oswal MOSt Focused Midcap 30 Fund

Investment Objective:
The investment objective of the Scheme is to achieve long term capital appreciation by investing in a maximum of 30 quality midcap companies having long-term competitive advantages and potential for growth. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.
Type of Scheme: An Open Ended Equity Scheme
Benchmark: Nifty Free Float Midcap 100 Index
Entry / Exit Load: Nil

Performance (As on Dec 31, 2016)

NAV per unit: Rs.21.4014 (31-Dec-2016); Rs.20.3468 (31-Dec-2015); Rs.17.4681 (31-Dec-2014); Rs.10.0000 (24-Feb-2014). Data as on 31-Dec-2016. Returns for one year are absolute. Returns for more than one year are compounded annualized; Incase, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of returns. Date of inception is deemed to be date of allotment. Past performance may or may not be sustained in the future.


Fund Manager
Mr. Siddharth Bothra (Fund Manager)- He has a rich experience of more than 15 years in the field of research and investments. He has been managing this fund since 23-Nov-2016

Mr. Gautam Sinha Roy - (Co-Fund Manager)- He has close to 13 years of experience in fund manage-ment and investment research. He has been co-managing this fund since 26-Dec-2016

SIP Performance (As on Dec 31, 2016)

Inception date: Feb 24, 2014. *Also represents addition benchmark

Returns for one year are absolute. Returns for more than one year are compounded annualized. For SIP returns, monthly investment of Rs. 10000/- invested on the 1st day of every month has been considered. Past performance may or may not be sustained in the future. 


Top 10 Holdings*

All the Returns shown above are of Regular Plan Growth Option

Sector Allocation*

Industry classification as recommended by AMFI
Data as on Feb 28, 2017

Multicap Fund

Motilal Oswal MOSt Focused Multicap 35 Fund

Investment Objective:
The investment objective of the Scheme is to achieve long term capital appreciation by primarily investing in a maximum of  35 equity & equity related instruments across sectors and market capitalization levels. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.
Type of Scheme: An Open Ended Diversified Equity Scheme
Benchmark: Nifty 500  Index
Entry / Exit Load: Nil

Performance (As on Dec 31, 2016)

NAV per unit: Rs.19.0651 (31-Dec-2016); Rs.17.5792 (31-Dec-2015);Rs.15.3398 (31-Dec-2014); Rs.10.0000 (28-Apr-2014). Data as on 31-Dec-2016. Returns for one year are absolute. Returns for more than one year are compounded annualized; Incase, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of returns. Date of inception is deemed to be date of allotment. Past performance may or may not be sustained in the future.


Fund Manager
Mr. Gautam Sinha Roy He has close to 13 years of experience in fund management and investment research. He has been managing this fund since 5-May-2014

Mr. Siddharth Bothra (Co-Fund Manager)-He has a rich experience of more than 15 years in the field of research and investments. He has been co-managing this fund since 23-Nov-2016

SIP Performance (As on Dec 31, 2016)

Inception date: Apr 28, 2014. *Also represents addition benchmark
Returns for one year are absolute. Returns for more than one year are compounded annualized. For SIP returns, monthly investment of Rs. 10000/- invested on the 1st day of every month has been considered. Past performance may or may not be sustained in the future.

Top 10 Holdings*

All the Returns shown above are of Regular Plan Growth Option

Sector Allocation*