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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Motilal Oswal 5 Year G-Sec Fund of Fund (G) - 10.0217Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive (G) - 11.6363Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive-Dir (G) - 11.6763Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative (G) - 11.1261Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative-Dir(G) - 11.1688Motilal Oswal Dynamic Fund (Div-A) - 14.2934Motilal Oswal Dynamic Fund (Div-Q) - 12.4016Motilal Oswal Dynamic Fund (G) - 15.772Motilal Oswal Dynamic Fund-Dir (Div-A) - 14.5354Motilal Oswal Dynamic Fund-Dir (Div-Q) - 12.6335Motilal Oswal Dynamic Fund-Dir (G) - 16.7248Motilal Oswal Equity Hybrid Fund - Direct (G) - 16.5083Motilal Oswal Equity Hybrid Fund - Regular (G) - 15.7018Motilal Oswal Flexi Cap Fund(D) - 27.2133Motilal Oswal Flexi Cap Fund(G) - 36.2026Motilal Oswal Flexi Cap Fund-Dir(D) - 27.3228Motilal Oswal Flexi Cap Fund-Dir(G) - 38.8617Motilal Oswal Focused 25 Fund - Direct (D) - 22.6445Motilal Oswal Focused 25 Fund - Direct (G) - 38.6816Motilal Oswal Focused 25 Fund (D) - 20.2746Motilal Oswal Focused 25 Fund (G) - 34.5445Motilal Oswal Large and Midcap Fund - Dir (D) - 17.4052Motilal Oswal Large and Midcap Fund - Dir (G) - 17.4199Motilal Oswal Large and Midcap Fund (D) - 16.8117Motilal Oswal Large and Midcap Fund (G) - 16.8117Motilal Oswal Liquid Fund - Direct (Div-D) RI - 10.0077Motilal Oswal Liquid Fund - Direct (Div-F) RI - 10.0078Motilal Oswal Liquid Fund - Direct (Div-M) - 10.0562Motilal Oswal Liquid Fund - Direct (Div-Q) - 10.0294Motilal Oswal Liquid Fund - Direct (Div-W) RI - 10.0093Motilal Oswal Liquid Fund - Direct (G) - 11.2297Motilal Oswal Liquid Fund - Regular (Div-D) RI - 10.0055Motilal Oswal Liquid Fund - Regular (Div-F) RI - 10.0074Motilal Oswal Liquid Fund - Regular (Div-M) - 10.0547Motilal Oswal Liquid Fund - Regular (Div-Q) - 10.0283Motilal Oswal Liquid Fund - Regular (Div-W) RI - 10.0162Motilal Oswal Liquid Fund - Regular (G) - 11.1816Motilal Oswal Long Term Equity Fund (D) - 21.5252Motilal Oswal Long Term Equity Fund (G) - 27.401Motilal Oswal Long Term Equity Fund -Dir (D) - 25.7245Motilal Oswal Long Term Equity Fund -Dir (G) - 30.0141Motilal Oswal Midcap 30 Fund (D) - 26.6253Motilal Oswal Midcap 30 Fund (G) - 43.584Motilal Oswal Midcap 30 Fund-Dir (D) - 27.6105Motilal Oswal Midcap 30 Fund-Dir (G) - 47.9385Motilal Oswal Multi Asset Fund - Direct (G) - 11.0504Motilal Oswal Multi Asset Fund (G) - 10.8467Motilal Oswal Nasdaq 100 FOF - Direct (G) - 24.5725Motilal Oswal Nasdaq 100 FOF - Regular (G) - 24.2877Motilal Oswal Nifty 50 Index Fund - Direct (G) - 15.1429Motilal Oswal Nifty 50 Index Fund (G) - 15.0261Motilal Oswal Nifty 500 Fund - Direct (G) - 17.4922Motilal Oswal Nifty 500 Fund (G) - 17.2501Motilal Oswal Nifty Bank Index Fund - Direct (G) - 14.8144Motilal Oswal Nifty Bank Index Fund (G) - 14.6103Motilal Oswal Nifty Midcap 150 Index Fund (G) - 20.2801Motilal Oswal Nifty Midcap 150 Index Fund-Dir (G) - 20.5801Motilal Oswal Nifty Next 50 Index Fund - Dir (G) - 14.9702Motilal Oswal Nifty Next 50 Index Fund (G) - 14.7873Motilal Oswal Nifty Smallcap 250 Index Fund (G) - 20.9342Motilal Oswal Nifty Smallcap 250 Index Fund-Dir(G) - 21.236Motilal Oswal S&P 500 Index Fund - Direct (G) - 15.5415Motilal Oswal S&P 500 Index Fund (G) - 15.3866Motilal Oswal Ultra Short Term Fund - Dir (Div-D) - 10.0265Motilal Oswal Ultra Short Term Fund - Dir (Div-F) - 10.0505Motilal Oswal Ultra Short Term Fund - Dir (Div-M) - 10.0336Motilal Oswal Ultra Short Term Fund - Dir (Div-Q) - 10.1781Motilal Oswal Ultra Short Term Fund - Dir (Div-W) - 10.0377Motilal Oswal Ultra Short Term Fund - Dir (G) - 14.2066Motilal Oswal Ultra Short Term Fund (Div-D) - 9.9638Motilal Oswal Ultra Short Term Fund (Div-F) - 9.9746Motilal Oswal Ultra Short Term Fund (Div-M) - 9.9644Motilal Oswal Ultra Short Term Fund (Div-Q) - 10.1091Motilal Oswal Ultra Short Term Fund (Div-W) - 9.9674Motilal Oswal Ultra Short Term Fund (G) - 13.7231

The Minimalist Investor

Blog Blog Details
  • June 01, 2020
  • Pratik Oswal|
  • Head, Passive Funds

The investment management industry has come a long way over the last three decades. The first mutual fund launched in the late 1980s and today there are not hundreds, but thousands of mutual funds in the industry today. In addition to mutual funds, there are Stocks, PMS, AIFs, ULIPS. All these acronyms have added choice but also complexity in decision making for investors today. 

Mutual fund industry itself has over ten categories in equity and debt each and selecting the right category of a mutual fund can be more than difficult. If investors think equity is complicated - debt is even more cumbersome and hard to understand. A lot of investment professionals will have a hard time trying to differentiate between categories in the debt segment. 

With the rising complexity - what should a minimalist investor do? How does one navigate the complex world of investment management if someone is looking for simplicity and efficiency? 
Before that, let’s clear some important don’ts for any investor today. 

How many equity mutual funds should I invest?
For the minimalist investor - less is more. There is no minimum number of funds an individual should own. Yes, one single fund is also sufficient. However, - investors should not hold too many equity funds. A maximum of 5-7 funds is advised. Anything beyond that - and your portfolio starts reflecting market average. Your portfolio will begin to mirror the index. 

What about debt funds? 
For a minimalist investor- liquid funds do the job. They do better than bank accounts and are protected from capital loss. 
Investors mustn’t chase higher yields. That leads to two things 1) buying risky securities 2) buying long-dated debt products which are at times more volatile than equity products. It’s important to remember - debt funds are there to provide capital protection, not there to offer high returns. It’s an alternative to bank accounts. 

What about other asset classes? 
A minimalist investor is generally happy with debt and equity. Gold has certainly done well, but it’s hard to predict the performance of a non-performing asset such as gold. International equity is an excellent asset class, and investors should pick a global fund in their portfolio. It reduces portfolio volatility and gives good diversification.

Index funds make things easy.
A minimalist investor prefers Index funds for their simplicity in the fund selection process. They have become popular in more developed economies in the west but are starting to get traction in India too. With index funds - the investing horizon goes from thousands of funds to less than ten options. An investor can invest and forget as performance will never be poor and over the long periods - a low expense ratio will ensure more money in working for the investor. 

A minimalist investor’s portfolio
A minimalist investor’s portfolio can potentially be a combination of three funds: a liquid fund, and two index funds (one domestic and one international). The S&P500 index is the world’s largest, most popular and simplest index fund out there. With over 40% of the sales coming from outside the US - the S&P500 can be seen as a global index fund. In India - the Nifty 500 is probably the best index in terms of coverage. It covers over 95% of India’s stock market - giving the investor equity as an asset class in one fund. The Nifty 50 is good but only covers half the large-cap index—the Nifty 500 covers large-cap, mid-cap and small-cap stocks. Over long-periods - index funds tend to fare better than most other funds due to cost savings. 

The unique combination of S&P500 index and Nifty 500 index takes out fund manager, geographical, size, and sector risk from the investing process - all at the low cost.

How much to allocate to both funds? 
An 80% allocation to Indian equities and a 20% allocation to international investments is a favourable portfolio to have for an Indian investor. Yearly rebalancing ensures allocation is the same. Rolling returns are a slightly better metric than annual returns. 

The debt portion is dependent on the investor risk profile. An aggressive investor can have 60-80% invested in equity, whereas a conservative investor should have 30-40% allocation to equity.

In conclusion - three funds combined in the right mix is enough for the minimalist investor. The question is that will the minimalist investor do well in return terms? Good long-term returns come from 90% discipline and 10% fund selection. If discipline is maintained - then a resounding yes. 


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