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 5 Year G-Sec Fund of Fund (G) - 9.9748Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive (G) - 10.7555Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive-Dir (G) - 10.8307Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative (G) - 10.5994Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative-Dir(G) - 10.6768Motilal Oswal Dynamic Fund (Div-A) - 12.1541Motilal Oswal Dynamic Fund (Div-Q) - 10.6756Motilal Oswal Dynamic Fund (G) - 14.257Motilal Oswal Dynamic Fund-Dir (Div-A) - 12.4611Motilal Oswal Dynamic Fund-Dir (Div-Q) - 10.9692Motilal Oswal Dynamic Fund-Dir (G) - 15.2318Motilal Oswal Equity Hybrid Fund - Direct (G) - 14.9567Motilal Oswal Equity Hybrid Fund - Regular (G) - 14.0931Motilal Oswal Flexi Cap Fund(D) - 21.1385Motilal Oswal Flexi Cap Fund(G) - 30.174Motilal Oswal Flexi Cap Fund-Dir(D) - 21.3353Motilal Oswal Flexi Cap Fund-Dir(G) - 32.5567Motilal Oswal Focused 25 Fund - Direct (D) - 18.2163Motilal Oswal Focused 25 Fund - Direct (G) - 33.3764Motilal Oswal Focused 25 Fund (D) - 16.2022Motilal Oswal Focused 25 Fund (G) - 29.608Motilal Oswal Large and Midcap Fund - Dir (D) - 14.0334Motilal Oswal Large and Midcap Fund - Dir (G) - 15.0788Motilal Oswal Large and Midcap Fund (D) - 13.4473Motilal Oswal Large and Midcap Fund (G) - 14.4301Motilal Oswal Liquid Fund - Direct (Div-D) RI - 10.0077Motilal Oswal Liquid Fund - Direct (Div-F) RI - 10.0228Motilal Oswal Liquid Fund - Direct (Div-M) - 10.0536Motilal Oswal Liquid Fund - Direct (Div-Q) - 10.0599Motilal Oswal Liquid Fund - Direct (Div-W) RI - 10.014Motilal Oswal Liquid Fund - Direct (G) - 11.4484Motilal Oswal Liquid Fund - Regular (Div-D) RI - 10.0055Motilal Oswal Liquid Fund - Regular (Div-F) RI - 10.022Motilal Oswal Liquid Fund - Regular (Div-M) - 10.0524Motilal Oswal Liquid Fund - Regular (Div-Q) - 10.0577Motilal Oswal Liquid Fund - Regular (Div-W) RI - 10.021Motilal Oswal Liquid Fund - Regular (G) - 11.3895Motilal Oswal Long Term Equity Fund (D) - 17.1788Motilal Oswal Long Term Equity Fund (G) - 23.4793Motilal Oswal Long Term Equity Fund -Dir (D) - 20.671Motilal Oswal Long Term Equity Fund -Dir (G) - 25.8956Motilal Oswal Midcap 30 Fund (D) - 23.9657Motilal Oswal Midcap 30 Fund (G) - 42.0423Motilal Oswal Midcap 30 Fund-Dir (D) - 25.0181Motilal Oswal Midcap 30 Fund-Dir (G) - 46.5408Motilal Oswal MSCI EAFE Top 100 Select Index Fund (G) - 9.6023Motilal Oswal Multi Asset Fund - Direct (G) - 10.7467Motilal Oswal Multi Asset Fund (G) - 10.4674Motilal Oswal Nasdaq 100 FOF - Direct (G) - 19.929Motilal Oswal Nasdaq 100 FOF - Regular (G) - 19.6525Motilal Oswal Nifty 200 Momentum 30 Index Fund - Direct (G) - 8.4174Motilal Oswal Nifty 50 Index Fund - Direct (G) - 13.5033Motilal Oswal Nifty 50 Index Fund (G) - 13.3678Motilal Oswal Nifty 500 Fund - Direct (G) - 15.5585Motilal Oswal Nifty 500 Fund (G) - 15.2849Motilal Oswal Nifty Bank Index Fund - Direct (G) - 12.7491Motilal Oswal Nifty Bank Index Fund (G) - 12.5201Motilal Oswal Nifty Midcap 150 Index Fund (G) - 17.8725Motilal Oswal Nifty Midcap 150 Index Fund-Dir (G) - 18.221Motilal Oswal Nifty Next 50 Index Fund - Dir (G) - 13.3071Motilal Oswal Nifty Next 50 Index Fund (G) - 13.0938Motilal Oswal Nifty Smallcap 250 Index Fund (G) - 18.122Motilal Oswal Nifty Smallcap 250 Index Fund-Dir(G) - 18.4599Motilal Oswal S&P 500 Index Fund - Direct (G) - 14.0076Motilal Oswal S&P 500 Index Fund (G) - 13.8223Motilal Oswal S&P BSE Low Volatility Index Fund (G) - 9.9108Motilal Oswal Ultra Short Term Fund - Dir (Div-D) - 10.1917Motilal Oswal Ultra Short Term Fund - Dir (Div-F) - 10.2165Motilal Oswal Ultra Short Term Fund - Dir (Div-M) - 10.1987Motilal Oswal Ultra Short Term Fund - Dir (Div-Q) - 10.3467Motilal Oswal Ultra Short Term Fund - Dir (Div-W) - 10.2037Motilal Oswal Ultra Short Term Fund - Dir (G) - 14.4412Motilal Oswal Ultra Short Term Fund (Div-D) - 10.0974Motilal Oswal Ultra Short Term Fund (Div-F) - 10.1094Motilal Oswal Ultra Short Term Fund (Div-M) - 10.0991Motilal Oswal Ultra Short Term Fund (Div-Q) - 10.2446Motilal Oswal Ultra Short Term Fund (Div-W) - 10.1023Motilal Oswal Ultra Short Term Fund (G) - 13.9071

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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