BETTER RISK ADJUSTED RETURN

Returns Volatility Returns/Volatility
Nifty 50 TRI *Crisil Hybrid Nifty 50 TRI *Crisil Hybrid Nifty 50 TRI *Crisil Hybrid
1 Year 14.49% 8.80% 10.3% 7.1% 1.41% 1.23%
2 Years 16.32% 12.91% 10.6% 7.4% 1.54% 1.75%
3 Years 12.06% 11.19% 12.9% 8.7% 0.94% 1.29%
5 Years 15.40% 14.48% 14.1% 9.4% 1.09% 1.54%
10 Years 11.43% 11.23% 20.8% 13.4% 0.55% 0.84%

June-2008 is taken as base year. The information provided herein is for illustrative purpose only and should not be construed as an investment advice. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Motilal Oswal AMC does not provide any guarantee/ assurance any minimum or maximum returns. *CRISIL Hybrid - CRISIL Hybrid 35+65 - Aggressive Index Source: MOAMC Internal Analysis, NSE, BSE: Data as on July 31st 2018

Rebalancing Helps Reduce Risk

Rebalancing Starting Allocation Effective Allocation Effective Risk

Observation Period: (Jan 03 - Jun 18)
Nifty 50 TRI is considered for Equity allocation and CRISIL short term bond index is considered in Debt allocation

  • To maintain an effective allocation of around 65% the portfolio regularly rebalances between equity and debt allocation

  • This inherently results in profit booking in rising equity market and adding equity allocation in falling markets

  • Moreover, Rebalancing under Equity Hybrid Fund is more tax – efficient than rebalancing on debt and equity mutual fund

Source: MOAMC Internal Analysis, Data as on July 31st 2018

TAX ADVANTAGE

Asset Allocation
Investment 1,00,000 Taxation
Equity Fund 65% 65,000 -
Debt Fund 35% 35,000 -
Returns Post 1 Year
Equity Fund 65.93% 72,800 780
Debt Fund 34.07% 37,625 787.5
Portfolio Value 1,10,425 1567.5
Equity Hybrid Fund
Investment 1,00,000 Taxation
Equity Allocation 65% 65,000 -
Debt Allocation 35% 35,000 -
Returns Post 1 Year
Equity Allocation 66.93% 72,800 -
Debt Allocation 34.07% 37,625 -
Portfolio Value 1,10,425 1042.5
  • In the above two cases, if the client redeems after a year of investment for Case 1 (Assets Allocation), Equity and Debt portion will be taxed on segregate basis whereas for Case 2 (Equity Hybrid Fund) the taxation will be at funds level

  • Case 1: Long term capital gain on Equity Fund is taxed at 10% and Short term capital gain on Debt Fund is taxed at 30%.

  • Case 2: Equity Hybrid Fund is subject to Equity Taxation, thus 10% long term capital gain tax on overall gain.

  • Return Assumptions: Equity growth for 1 Year: 12% , Debt: growth for 1 Year: 7.5%

The above is for illustration purpose only. The expected rate of return is an assumed figure for the purpose of explaining the concept. The actual result may vary from depicted results depending on scheme selected. It should not be construed to be indicative of scheme performance in any manner. Past performance may or may not be sustained in future.

Cash Flow Plan V/s Dividend Option

Date Jan(2014) Jan (2015) Feb (2015) Mar (2015) Apr (2015) May (2015) June (2015) July (2015) Aug (2015) Sep (2015) Oct (2015) Nov (2015) Dec (2015)
NAV 10.43 13.77 14.57 14.85 14.64 14.38 14.70 14.77 15.19 14.37 14.69 14.59 14.57
Investment Amount 1,00,000
Balance Units 9,588 9,490 9,417 9,349 9,281 9,213 9,144 9,076 9,008 8,942 8,872 8,804 8,736
Cashflow/Dividend 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Units Redeemed 73 69 67 68 70 68 68 66 70 68 69 69
Cash Flow Plan
LTCG (Long term Capital Gain) 24.3 28.4 29.8 28.8 27.4 29.1 29.4 31.3 27.4 29.0 28.5 28.4
Total Tax 341.8
Dividends
DDT(Dividend Distribution Tax) 100 100 100 100 100 100 100 100 100 100 100 100
Total Tax 1,200
  • Investor opting for a Cash Flow Plan, the tax paid by the investor is 10% (LTCG) on the gains only (Difference in NAV x Units), whereas for the dividend option, the investor has to pay 10% Dividend Distribution Tax (DDT) on the entire amount withdrawn i.e. dividend

The above illustration is based on assumed composite NAV of an actively managed fund (65%) and Crisil Short Term Bond Fund Index (35%), assuming some one invested on 13th may 2013 at Starting NAV of 10 and monthly withdrawal at 1% of of Investment Amount.

Motilal Oswal Equity Hybrid Fund

Equity
Debt

*As per current investment strategy we intend to be large cap biased, though scheme can be multicap as per the provisions of SID

MOTILAL OSWAL CASH FLOW PLAN (MO – CP) and Illustration

      • Cash flow requirement would be met
      • Capital would eventually remain intact with same potential for growth

Note: Motilal Oswal Cash Flow Plan provides a regular source of funds from returns generated and capital invested.

Year 1 Year 2 Year 3 Year 4 Year 5
Investment Value 10,00,000 10,28,444 12,33,919 10,69,498 12,68,803
Starting Unit 1,00,000 91,138 84,306 77,097 71,465
Withdrawal 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000 Yearly withdrawal at 10% of Investment Amount
Units Sold 8,862 6,832 7,209 5,632 5,211
Ending Unit 91,138 84,306 77,097 71,465 66,253
Ending Value 10,28,444 12,33,919 10,69,498 12,68,803 12,71,355
XIRR Overall 14.07%

The above illustration is based on assumed composite NAV of an actively managed fund (65%) and Crisil Short Term Bond Fund Index (35%). It also assumes that an investor invested in May 2013 at starting NAV of 10 and yearly withdrawal at 10% of Investment Amount. The above chart is provided for illustration purpose only. Motilal Oswal AMC does not provide any guarantee/ assurance any minimum or maximum returns. It should not be construed to be indicative of scheme performance in any manner. Past performance may or may not be sustained in future

Features of Motilal oswal Equity hybrid fund

      • Rs. 1,000 and in multiples of Re.1/- thereafter (Minimum Installment – 6)
      • Rs. 1,000 and in multiples of Re.1/- thereafter (Minimum Installment – 6)
      • Rs. 1,000 and in multiples of Re.1/- thereafter (Minimum Installment – 6)
      • Rs. 2,000 and in multiples of Re.1/- thereafter (Minimum Installment – 3)
      • Rs. 5,000 and in multiples of Re. 1/- thereafter (Minimum Installment – 1)

OUR Investment philosophy

BUY RIGHT WITH QGLP
SIT TIGHT APPROACH
Name of the Scheme This product is suitable for investors who are seeking*
Motilal Oswal Equity Hybrid Fund (MOFEH) (An open ended hybrid scheme investing predominantly in equity and equity related instruments) ● Long term capital appreciation by generating equity linked returns
● Investment predominantly in equity and equity related instruments

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

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