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.
Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive (G) - 11.3885Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive-Dir (G) - 11.4225Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative (G) - 10.9704Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative-Dir(G) - 11.007Motilal Oswal Dynamic Fund (Div-A) - 14.1842Motilal Oswal Dynamic Fund (Div-Q) - 12.7036Motilal Oswal Dynamic Fund (G) - 15.6514Motilal Oswal Dynamic Fund-Dir (Div-A) - 14.4096Motilal Oswal Dynamic Fund-Dir (Div-Q) - 12.9208Motilal Oswal Dynamic Fund-Dir (G) - 16.5802Motilal Oswal Equity Hybrid Fund - Direct (G) - 16.4625Motilal Oswal Equity Hybrid Fund - Regular (G) - 15.6786Motilal Oswal Flexi Cap Fund(D) - 27.3339Motilal Oswal Flexi Cap Fund(G) - 36.363Motilal Oswal Flexi Cap Fund-Dir(D) - 27.4239Motilal Oswal Flexi Cap Fund-Dir(G) - 39.0054Motilal Oswal Focused 25 Fund - Direct (D) - 22.6364Motilal Oswal Focused 25 Fund - Direct (G) - 38.6678Motilal Oswal Focused 25 Fund (D) - 20.2883Motilal Oswal Focused 25 Fund (G) - 34.568Motilal Oswal Large and Midcap Fund - Dir (D) - 17.2812Motilal Oswal Large and Midcap Fund - Dir (G) - 17.2959Motilal Oswal Large and Midcap Fund (D) - 16.7151Motilal Oswal Large and Midcap Fund (G) - 16.7152Motilal Oswal Liquid Fund - Direct (Div-D) RI - 10.0077Motilal Oswal Liquid Fund - Direct (Div-F) RI - 10.0068Motilal Oswal Liquid Fund - Direct (Div-M) - 10.0325Motilal Oswal Liquid Fund - Direct (Div-Q) - 10.0059Motilal Oswal Liquid Fund - Direct (Div-W) RI - 10.0083Motilal Oswal Liquid Fund - Direct (G) - 11.2033Motilal Oswal Liquid Fund - Regular (Div-D) RI - 10.0055Motilal Oswal Liquid Fund - Regular (Div-F) RI - 10.0065Motilal Oswal Liquid Fund - Regular (Div-M) - 10.0323Motilal Oswal Liquid Fund - Regular (Div-Q) - 10.0058Motilal Oswal Liquid Fund - Regular (Div-W) RI - 10.0153Motilal Oswal Liquid Fund - Regular (G) - 11.1567Motilal Oswal Long Term Equity Fund (D) - 21.4455Motilal Oswal Long Term Equity Fund (G) - 27.2995Motilal Oswal Long Term Equity Fund -Dir (D) - 25.6021Motilal Oswal Long Term Equity Fund -Dir (G) - 29.8712Motilal Oswal Midcap 30 Fund (D) - 25.5353Motilal Oswal Midcap 30 Fund (G) - 41.7998Motilal Oswal Midcap 30 Fund-Dir (D) - 26.4538Motilal Oswal Midcap 30 Fund-Dir (G) - 45.9303Motilal Oswal Multi Asset Fund - Direct (G) - 10.9516Motilal Oswal Multi Asset Fund (G) - 10.7628Motilal Oswal Nasdaq 100 FOF - Direct (G) - 23.7316Motilal Oswal Nasdaq 100 FOF - Regular (G) - 23.4642Motilal Oswal Nifty 50 Index Fund - Direct (G) - 14.8365Motilal Oswal Nifty 50 Index Fund (G) - 14.727Motilal Oswal Nifty 500 Fund - Direct (G) - 17.1496Motilal Oswal Nifty 500 Fund (G) - 16.9213Motilal Oswal Nifty Bank Index Fund - Direct (G) - 13.8251Motilal Oswal Nifty Bank Index Fund (G) - 13.642Motilal Oswal Nifty Midcap 150 Index Fund (G) - 19.7512Motilal Oswal Nifty Midcap 150 Index Fund-Dir (G) - 20.0302Motilal Oswal Nifty Next 50 Index Fund - Dir (G) - 15.0414Motilal Oswal Nifty Next 50 Index Fund (G) - 14.8655Motilal Oswal Nifty Smallcap 250 Index Fund (G) - 20.4601Motilal Oswal Nifty Smallcap 250 Index Fund-Dir(G) - 20.7427Motilal Oswal S&P 500 Index Fund - Direct (G) - 14.9002Motilal Oswal S&P 500 Index Fund (G) - 14.7586Motilal Oswal Ultra Short Term Fund - Dir (Div-D) - 10.0051Motilal Oswal Ultra Short Term Fund - Dir (Div-F) - 10.0285Motilal Oswal Ultra Short Term Fund - Dir (Div-M) - 10.0121Motilal Oswal Ultra Short Term Fund - Dir (Div-Q) - 10.1563Motilal Oswal Ultra Short Term Fund - Dir (Div-W) - 10.0162Motilal Oswal Ultra Short Term Fund - Dir (G) - 14.1761Motilal Oswal Ultra Short Term Fund (Div-D) - 9.949Motilal Oswal Ultra Short Term Fund (Div-F) - 9.9598Motilal Oswal Ultra Short Term Fund (Div-M) - 9.9495Motilal Oswal Ultra Short Term Fund (Div-Q) - 10.0941Motilal Oswal Ultra Short Term Fund (Div-W) - 9.9526Motilal Oswal Ultra Short Term Fund (G) - 13.7027

How do you invest in a bubble market?

Blog Blog Details
  • March 23, 2021
  • Pratik Oswal|
  • Head of Passive Funds Business
When the stock markets give strong upward moves, like the one we have seen in the last year, investors cannot avoid thinking of a bubble building up in the stock market. For some investors, a high price-to-earnings ratio appears frightening. Some investors turn nervous when the index starts hitting a new all-time high and enters uncharted territory. The notion of asset prices getting into bubble zone plays on the investors minds, and many can neither buy, sell or even stay put in this market. How does one deal with this?

An obvious approach is to stay out of markets. The rationale behind this is to invest after the prices crash. But this is easier said than done. Spotting a bubble can only be done in hindsight. The first challenge is to identify if we are in a bubble phase. There are no clear guidelines on how to spot them. Even if the valuations quote at the higher-end, investors may keep pushing up the prices for longer than expected for one reason or the other. In the words of British economist—John Maynard Keynes, "The markets can remain irrational longer than you can remain solvent." It is difficult to predict how long it takes to build a bubble and how long it lasts. It may be a few months or even a couple of years for a bubble to burst. If you decide to stay out thinking of a bubble that was never there, then there is an opportunity lost .

Even if there is a bubble, you have to be perfect when timing the market. First, you have to identify the top, and then you have to get it right at the bottom. In 2007 the Indian markets were enjoying high valuations in some pockets. But the markets cracked in early 2008. Those who sold the stocks in early 2007 were disappointed. Even if you have got the top right in early 2008, how many would have the courage to buy stocks at the bottom in October 2008? Getting both the top and bottom right is almost impossible.

Put simply; investors cannot postpone their investments thinking of some bubble and waiting for it to burst. Investors should stick to their investment plan based on asset allocation, which is derived after factoring in their risk appetite. Investing across asset classes with low correlation with each other can help reduce anxiety. Not all asset classes move in one direction—be it up or down or sideways.

Staggered investments over time or SIPs in various asset classes ensure that you reduce the timing risk. You are neither investing all your money at the top nor investing at the bottom.

When the prices are moving up fast, investors should use this to their advantage by rebalancing their asset allocation at regular intervals. This is a disciplined method of selling that asset class that has appreciated and buy assets that have not appreciated or fallen.

Lastly, the most important tool an investor has is time. The longer the time-frame of an investment, the higher is the likelihood an investor will make enough money to take care of financial goals.

So, the next time you hear someone talking about bubbles, know that it is time to hang on and not hang up one s boots!

— Pratik Oswal is Head of Passive Funds Business, Motilal Oswal Asset Management Company. The views expressed are personal

This article was originally published on CNBC TV18 March 23,2021 01:07 PM IST

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