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 Dynamic Fund (Div-A) - 12.017Motilal Oswal Dynamic Fund (Div-Q) - 11.5389Motilal Oswal Dynamic Fund (G) - 12.7752Motilal Oswal Dynamic Fund-Dir (Div-A) - 12.2316Motilal Oswal Dynamic Fund-Dir (Div-Q) - 11.4833Motilal Oswal Dynamic Fund-Dir (G) - 13.3245Motilal Oswal Equity Hybrid Fund - Direct (G) - 11.2228Motilal Oswal Equity Hybrid Fund - Regular (G) - 10.9098Motilal Oswal Focused 25 Fund - Direct (D) - 16.4564Motilal Oswal Focused 25 Fund - Direct (G) - 23.9723Motilal Oswal Focused 25 Fund (D) - 14.9946Motilal Oswal Focused 25 Fund (G) - 21.7613Motilal Oswal Large and Midcap Fund - Dir (D) - 9.2846Motilal Oswal Large and Midcap Fund - Dir (G) - 9.2846Motilal Oswal Large and Midcap Fund (D) - 9.1709Motilal Oswal Large and Midcap Fund (G) - 9.1709Motilal Oswal Liquid Fund - Direct (Div-D) RI - 10.0077Motilal Oswal Liquid Fund - Direct (Div-F) RI - 10.0094Motilal Oswal Liquid Fund - Direct (Div-M) - 10.034Motilal Oswal Liquid Fund - Direct (Div-Q) - 10.0038Motilal Oswal Liquid Fund - Direct (Div-W) RI - 10.0114Motilal Oswal Liquid Fund - Direct (G) - 10.7977Motilal Oswal Liquid Fund - Regular (Div-D) RI - 10.0055Motilal Oswal Liquid Fund - Regular (Div-F) RI - 10.0087Motilal Oswal Liquid Fund - Regular (Div-M) - 10.0338Motilal Oswal Liquid Fund - Regular (Div-Q) - 10.0058Motilal Oswal Liquid Fund - Regular (Div-W) RI - 10.018Motilal Oswal Liquid Fund - Regular (G) - 10.7729Motilal Oswal Long Term Equity Fund (D) - 13.8486Motilal Oswal Long Term Equity Fund (G) - 15.6291Motilal Oswal Long Term Equity Fund -Dir (D) - 14.9808Motilal Oswal Long Term Equity Fund -Dir (G) - 16.819Motilal Oswal Midcap 30 Fund (D) - 15.5592Motilal Oswal Midcap 30 Fund (G) - 21.7798Motilal Oswal Midcap 30 Fund-Dir (D) - 15.9338Motilal Oswal Midcap 30 Fund-Dir (G) - 23.5542Motilal Oswal Multicap 35 Fund (D) - 20.4705Motilal Oswal Multicap 35 Fund (G) - 23.2353Motilal Oswal Multicap 35 Fund-Dir(D) - 20.4964Motilal Oswal Multicap 35 Fund-Dir(G) - 24.6433Motilal Oswal Nasdaq 100 FOF - Direct (G) - 16.3032Motilal Oswal Nasdaq 100 FOF - Regular (G) - 16.2Motilal Oswal Nifty 50 Index Fund - Direct (G) - 8.5858Motilal Oswal Nifty 50 Index Fund (G) - 8.5677Motilal Oswal Nifty 500 Fund - Direct (G) - 9.6441Motilal Oswal Nifty 500 Fund (G) - 9.5929Motilal Oswal Nifty Bank Index Fund - Direct (G) - 8.0169Motilal Oswal Nifty Bank Index Fund (G) - 7.9749Motilal Oswal Nifty Midcap 150 Index Fund (G) - 10.0047Motilal Oswal Nifty Midcap 150 Index Fund-Dir (G) - 10.0579Motilal Oswal Nifty Next 50 Index Fund - Dir (G) - 9.1151Motilal Oswal Nifty Next 50 Index Fund (G) - 9.0843Motilal Oswal Nifty Smallcap 250 Index Fund (G) - 9.1322Motilal Oswal Nifty Smallcap 250 Index Fund-Dir(G) - 9.1812Motilal Oswal S&P 500 Index Fund - Direct (G) - 10.6392Motilal Oswal S&P 500 Index Fund (G) - 10.6259Motilal Oswal Ultra Short Term Fund - Dir (Div-D) - 9.6138Motilal Oswal Ultra Short Term Fund - Dir (Div-F) - 9.6318Motilal Oswal Ultra Short Term Fund - Dir (Div-M) - 9.6206Motilal Oswal Ultra Short Term Fund - Dir (Div-Q) - 9.7589Motilal Oswal Ultra Short Term Fund - Dir (Div-W) - 9.6244Motilal Oswal Ultra Short Term Fund - Dir (G) - 13.6219Motilal Oswal Ultra Short Term Fund (Div-D) - 9.6173Motilal Oswal Ultra Short Term Fund (Div-F) - 9.6276Motilal Oswal Ultra Short Term Fund (Div-M) - 9.6177Motilal Oswal Ultra Short Term Fund (Div-Q) - 9.7576Motilal Oswal Ultra Short Term Fund (Div-W) - 9.6207Motilal Oswal Ultra Short Term Fund (G) - 13.2462

The Minimalist Investor

Blog Blog Details
  • June 01, 2020
  • Pratik Oswal|
  • MD & CEO 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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