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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 Asset Allocation Passive Fund of Fund – Aggressive (G) - 11.3846Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive-Dir (G) - 11.4181Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative (G) - 10.9654Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative-Dir(G) - 11.0015Motilal Oswal Dynamic Fund (Div-A) - 14.1399Motilal Oswal Dynamic Fund (Div-Q) - 12.664Motilal Oswal Dynamic Fund (G) - 15.6026Motilal Oswal Dynamic Fund-Dir (Div-A) - 14.3632Motilal Oswal Dynamic Fund-Dir (Div-Q) - 12.8792Motilal Oswal Dynamic Fund-Dir (G) - 16.5268Motilal Oswal Equity Hybrid Fund - Direct (G) - 16.4362Motilal Oswal Equity Hybrid Fund - Regular (G) - 15.6555Motilal Oswal Flexi Cap Fund(D) - 27.2528Motilal Oswal Flexi Cap Fund(G) - 36.2551Motilal Oswal Flexi Cap Fund-Dir(D) - 27.3405Motilal Oswal Flexi Cap Fund-Dir(G) - 38.8868Motilal Oswal Focused 25 Fund - Direct (D) - 22.5111Motilal Oswal Focused 25 Fund - Direct (G) - 38.4537Motilal Oswal Focused 25 Fund (D) - 20.1781Motilal Oswal Focused 25 Fund (G) - 34.3801Motilal Oswal Large and Midcap Fund - Dir (D) - 17.3261Motilal Oswal Large and Midcap Fund - Dir (G) - 17.3408Motilal Oswal Large and Midcap Fund (D) - 16.7609Motilal Oswal Large and Midcap Fund (G) - 16.761Motilal Oswal Liquid Fund - Direct (Div-D) RI - 10.0077Motilal Oswal Liquid Fund - Direct (Div-F) RI - 10.0043Motilal Oswal Liquid Fund - Direct (Div-M) - 10.03Motilal Oswal Liquid Fund - Direct (Div-Q) - 10.0034Motilal Oswal Liquid Fund - Direct (Div-W) RI - 10.0058Motilal Oswal Liquid Fund - Direct (G) - 11.2006Motilal Oswal Liquid Fund - Regular (Div-D) RI - 10.0055Motilal Oswal Liquid Fund - Regular (Div-F) RI - 10.0042Motilal Oswal Liquid Fund - Regular (Div-M) - 10.03Motilal Oswal Liquid Fund - Regular (Div-Q) - 10.0034Motilal Oswal Liquid Fund - Regular (Div-W) RI - 10.013Motilal Oswal Liquid Fund - Regular (G) - 11.1541Motilal Oswal Long Term Equity Fund (D) - 21.5046Motilal Oswal Long Term Equity Fund (G) - 27.3747Motilal Oswal Long Term Equity Fund -Dir (D) - 25.6699Motilal Oswal Long Term Equity Fund -Dir (G) - 29.9503Motilal Oswal Midcap 30 Fund (D) - 25.6227Motilal Oswal Midcap 30 Fund (G) - 41.9429Motilal Oswal Midcap 30 Fund-Dir (D) - 26.5417Motilal Oswal Midcap 30 Fund-Dir (G) - 46.083Motilal Oswal Multi Asset Fund - Direct (G) - 10.944Motilal Oswal Multi Asset Fund (G) - 10.7567Motilal Oswal Nasdaq 100 FOF - Direct (G) - 23.6638Motilal Oswal Nasdaq 100 FOF - Regular (G) - 23.398Motilal Oswal Nifty 50 Index Fund - Direct (G) - 14.8351Motilal Oswal Nifty 50 Index Fund (G) - 14.726Motilal Oswal Nifty 500 Fund - Direct (G) - 17.1524Motilal Oswal Nifty 500 Fund (G) - 16.925Motilal Oswal Nifty Bank Index Fund - Direct (G) - 13.701Motilal Oswal Nifty Bank Index Fund (G) - 13.5202Motilal Oswal Nifty Midcap 150 Index Fund (G) - 19.7725Motilal Oswal Nifty Midcap 150 Index Fund-Dir (G) - 20.0505Motilal Oswal Nifty Next 50 Index Fund - Dir (G) - 15.0847Motilal Oswal Nifty Next 50 Index Fund (G) - 14.9091Motilal Oswal Nifty Smallcap 250 Index Fund (G) - 20.4288Motilal Oswal Nifty Smallcap 250 Index Fund-Dir(G) - 20.7098Motilal Oswal S&P 500 Index Fund - Direct (G) - 14.865Motilal Oswal S&P 500 Index Fund (G) - 14.7245Motilal Oswal Ultra Short Term Fund - Dir (Div-D) - 10.0029Motilal Oswal Ultra Short Term Fund - Dir (Div-F) - 10.0263Motilal Oswal Ultra Short Term Fund - Dir (Div-M) - 10.0099Motilal Oswal Ultra Short Term Fund - Dir (Div-Q) - 10.1541Motilal Oswal Ultra Short Term Fund - Dir (Div-W) - 10.014Motilal Oswal Ultra Short Term Fund - Dir (G) - 14.173Motilal Oswal Ultra Short Term Fund (Div-D) - 9.9475Motilal Oswal Ultra Short Term Fund (Div-F) - 9.9582Motilal Oswal Ultra Short Term Fund (Div-M) - 9.948Motilal Oswal Ultra Short Term Fund (Div-Q) - 10.0925Motilal Oswal Ultra Short Term Fund (Div-W) - 9.951Motilal Oswal Ultra Short Term Fund (G) - 13.7006

Why investing internationally is essential

Blog Blog Details
  • May 18, 2021
  • Pratik Oswal|
  • Head of Passive Funds Business

Global investing has taken off in a big way for investors in India. The recent outperformance of US-centric funds over India and the ability to play US consumer and technology companies with ease of access has paved the way to a better-diversified portfolio for Indian investors. 

In India - International funds have seen record flows over the last 12 months. With international investing becoming a big theme and as more and more investors accept global diversification - it s essential not to get caught up by the high returns generated. Let s keep in mind that high returns in the past in a particular asset class rarely continue over long-time periods. Investors jumping in today due to missing out on past returns will mostly not fare well over the long-term.

If not high returns than why should one look at investing internationally? 

1. Diversification of portfolio - Adding international funds lowers portfolio volatility for investors. How? History has shown that global markets tend to move in different directions than Indian markets over long-term periods. Hence when Indian markets perform poorly - global markets keep our portfolios stable (even our emotions). The table below shows that an allocation of 50% of our portfolio into a global portfolio can reduce volatility by 100%. 

2. Dollar protection - Today, many investors spend their hard earned savings on vacations abroad and international products. Also - the number of students leaving India and going abroad has exploded over the last decade. Vacationers and school-goers have noticed that the dollar keeps on getting more and more expensive every year. Last decade the dollar used to cost ~Rs.50, today is close to Rs.80. International funds provide access to some of the world’s largest companies and give investors the ability to invest in USD, thus protecting investors from future devaluation. 

3. International Growth opportunities - Today, most investors buy and hold ITC, Hero Honda, HUL in their investment funds but buy Apple iPhones, Hyundai Cars, H&M clothes, Windows laptops, Adidas Shoes and use Airbnb instead of hotels. The reality is that the world is more open, and buying Indian stocks is not enough to create wealth. International funds enable investors to participate in the world’s biggest companies and brands. Stocks like Facebook, Google, Whatsapp can be easily accessed via international funds.

How does one go about doing this? 

1.Use mutual funds to easier access - Investors looking at global funds can either set up brokerage accounts in the US or buy mutual funds directly in India. Setting up brokerage accounts can be time-consuming and expensive - but can be useful for investors looking for choice. Mutual funds, however, are cheaper and more convenient. Purchase and redemption are simple, setting up monthly investments (SIPs) too. There are no limits when it comes to investing abroad via mutual funds. 

2.Use index products - Index funds have proven a lot more popular when investing in developed markets such as the US and Europe. They are low cost and deliver the highest performance over long periods. Most importantly - they are simple enough for investors to hold on to for decades. 

3.Don t stick to US funds only - American markets have had a great run over the last ten years. Investors looking for Diversification should also look at other markets. The below table shows that it is impossible to time markets perfectly. Hence, investors looking for global Diversification should look for the US, Emerging Markets, and other developed markets for their exposure.

4.Stay away from speculation:* History says that 95%+ speculators/traders don t make money. Most of them lose money. Investors who are trading with the impression that they are building their wealth should keep this in mind and remember that all the best investors and entrepreneurs create wealth via compounding, which takes many, many years. Getting rich slow is boring - but that s, unfortunately, the only proven way.

5.Have a large allocation: A 3-4% allocation to international funds has close to zero impact on diversification essentially making global funds just another fund in the portfolio. For investors looking for low correlation, dollar protection, diversification etc allocation needs to be significant (think 10-15%+ of the portfolio). 

As the world becomes global and as Indians become more international spenders and vacationers, it s important to diversify investments in the same way. A $1,000 smartphone is a $1,000 smartphone for an average American at all times. For an Indian, it was Rs 45,000 10 years ago; today it s Rs 70,000 and tomorrow it will most probably be much more. 

In conclusion, investors who are looking for diversification opportunities should explore global investing. While India is a large and significant country, it remains less than 4% of the worldwide GDP. Hence, Indian investors, today are missing out on 95%+ of wealth creation opportunities outside India.

This article was originally published in Telegraph on 17th may 2021.

“This article has been issued on the basis of publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material fact. The information / data herein alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions, figures, estimates and data included in this article are as on date. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible/liable for any decision taken on the basis of this article. Investments in securities market are subject to market risks, read all relevant documents carefully.”
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