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) - 10.1178Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive (G) - 11.5983Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive-Dir (G) - 11.693Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative (G) - 11.1433Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative-Dir(G) - 11.2387Motilal Oswal Dynamic Fund (Div-A) - 13.0657Motilal Oswal Dynamic Fund (Div-Q) - 11.3125Motilal Oswal Dynamic Fund (G) - 15.3263Motilal Oswal Dynamic Fund-Dir (Div-A) - 13.4319Motilal Oswal Dynamic Fund-Dir (Div-Q) - 11.6494Motilal Oswal Dynamic Fund-Dir (G) - 16.418Motilal Oswal Equity Hybrid Fund - Direct (G) - 16.2067Motilal Oswal Equity Hybrid Fund - Regular (G) - 15.2217Motilal Oswal Flexi Cap Fund(D) - 23.0931Motilal Oswal Flexi Cap Fund(G) - 32.964Motilal Oswal Flexi Cap Fund-Dir(D) - 23.3502Motilal Oswal Flexi Cap Fund-Dir(G) - 35.6314Motilal Oswal Focused 25 Fund - Direct (D) - 20.292Motilal Oswal Focused 25 Fund - Direct (G) - 37.1795Motilal Oswal Focused 25 Fund (D) - 18.003Motilal Oswal Focused 25 Fund (G) - 32.8989Motilal Oswal Large and Midcap Fund - Dir (D) - 15.7595Motilal Oswal Large and Midcap Fund - Dir (G) - 16.9334Motilal Oswal Large and Midcap Fund (D) - 15.0549Motilal Oswal Large and Midcap Fund (G) - 16.1552Motilal Oswal Liquid Fund - Direct (Div-D) RI - 10.0077Motilal Oswal Liquid Fund - Direct (Div-F) RI - 10.0043Motilal Oswal Liquid Fund - Direct (Div-M) - 10.0493Motilal Oswal Liquid Fund - Direct (Div-Q) - 10.0652Motilal Oswal Liquid Fund - Direct (Div-W) RI - 10.0058Motilal Oswal Liquid Fund - Direct (G) - 11.5604Motilal Oswal Liquid Fund - Regular (Div-D) RI - 10.0055Motilal Oswal Liquid Fund - Regular (Div-F) RI - 10.0042Motilal Oswal Liquid Fund - Regular (Div-M) - 10.0487Motilal Oswal Liquid Fund - Regular (Div-Q) - 10.0635Motilal Oswal Liquid Fund - Regular (Div-W) RI - 10.013Motilal Oswal Liquid Fund - Regular (G) - 11.4972Motilal Oswal Long Term Equity Fund (D) - 19.2744Motilal Oswal Long Term Equity Fund (G) - 26.3435Motilal Oswal Long Term Equity Fund -Dir (D) - 23.2551Motilal Oswal Long Term Equity Fund -Dir (G) - 29.1327Motilal Oswal Midcap 30 Fund (D) - 27.5907Motilal Oswal Midcap 30 Fund (G) - 48.4015Motilal Oswal Midcap 30 Fund-Dir (D) - 28.8756Motilal Oswal Midcap 30 Fund-Dir (G) - 53.7168Motilal Oswal MSCI EAFE Top 100 Select Index Fund (G) - 9.6619Motilal Oswal Multi Asset Fund - Direct (G) - 11.1077Motilal Oswal Multi Asset Fund (G) - 10.7928Motilal Oswal Nasdaq 100 FOF - Direct (G) - 22.74Motilal Oswal Nasdaq 100 FOF - Regular (G) - 22.4053Motilal Oswal Nifty 200 Momentum 30 Index Fund - Direct (G) - 9.3099Motilal Oswal Nifty 50 Index Fund - Direct (G) - 14.865Motilal Oswal Nifty 50 Index Fund (G) - 14.7033Motilal Oswal Nifty 500 Fund - Direct (G) - 17.2385Motilal Oswal Nifty 500 Fund (G) - 16.9119Motilal Oswal Nifty Bank Index Fund - Direct (G) - 14.2164Motilal Oswal Nifty Bank Index Fund (G) - 13.9372Motilal Oswal Nifty Midcap 150 Index Fund (G) - 20.348Motilal Oswal Nifty Midcap 150 Index Fund-Dir (G) - 20.7802Motilal Oswal Nifty Next 50 Index Fund - Dir (G) - 14.912Motilal Oswal Nifty Next 50 Index Fund (G) - 14.6526Motilal Oswal Nifty Smallcap 250 Index Fund (G) - 19.6016Motilal Oswal Nifty Smallcap 250 Index Fund-Dir(G) - 19.9979Motilal Oswal S&P 500 Index Fund - Direct (G) - 15.2425Motilal Oswal S&P 500 Index Fund (G) - 15.0232Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund (G) - 10.2366Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund-Dir (G) - 10.2395Motilal Oswal S&P BSE Low Volatility Index Fund (G) - 10.7395Motilal Oswal Ultra Short Term Fund - Dir (Div-D) - 10.2879Motilal Oswal Ultra Short Term Fund - Dir (Div-F) - 10.313Motilal Oswal Ultra Short Term Fund - Dir (Div-M) - 10.295Motilal Oswal Ultra Short Term Fund - Dir (Div-Q) - 10.4443Motilal Oswal Ultra Short Term Fund - Dir (Div-W) - 10.3001Motilal Oswal Ultra Short Term Fund - Dir (G) - 14.5775Motilal Oswal Ultra Short Term Fund (Div-D) - 10.182Motilal Oswal Ultra Short Term Fund (Div-F) - 10.1945Motilal Oswal Ultra Short Term Fund (Div-M) - 10.1838Motilal Oswal Ultra Short Term Fund (Div-Q) - 10.3305Motilal Oswal Ultra Short Term Fund (Div-W) - 10.187Motilal Oswal Ultra Short Term Fund (G) - 14.0237

GST likely to reduce inflation

Blog Blog Details
  • May 29, 2017
  • Siddharth Bothra|
  • Fund Manager, MF

With the stock market at a record high, is the risk-reward ratio no longer in favour of the investors?
We are still positive on the Indian equity markets from the long-term perspective, if the growth opportunity and key catalysts remain intact. We believe investors should view the ongoing market correction and volatility in the context of the sharp up-move the Indian markets have seen in the past 12-15 months. Following such moves, market consolidation is not surprising and is often healthy for the market as a whole. In our opinion, the risk-reward ratio continues to be favourable for long-term equity investors.

Has the current earnings season delivered on expectations?
The ongoing earnings season has had its share of positive and negative surprises. But overall, it seems to be delivering on expectations. So far, the revenue growth has been broadly in line with expectations at about 8% for Nifty, but profitability growth has exceeded expectations at 6% year-on-year. There have been positive surprises in the discretionary consumption sectors like jewellery, cement and consumer electronics, which have reported better numbers than expected. Even in the consumer universe, volume growth has been better than anticipated as the impact of demonetisation seems to be fading. We have also seen some strong results in auto and financials, whereas large pharma companies have disappointed.

GST rates are finally in place. Are there any factors that have taken you by surprise?
While the expectation was that GST could be inflationary, the announced rates suggest it is likely to reduce inflation. Most primary articles and food categories have been assigned lower tax rates, which would reduce CPI inflation. Most of the rates are largely in line with what was anticipated. However, building materials, five-star hotels, detergents, hair creams, ayurvedic products products and multiplexes have been assigned higher than expected tax rates. There have been a few positive surprises like cigarettes, SUVs and coal.

Which themes or sectors do you expect to do well over the next 3-5 years?
We are positive on the banking and financial services sector in general, and the housing finance and insurance sectors in particular. Some of the key themes we find attractive for the next three to five years are: financial savings moving from physical to financial assets, shift from unorganised sector to the organised, and plays benefiting from structural changes in rural India.

Do large-caps make more sense at current levels or do you think mid-caps still hold more potential?

Mid and small caps as a category have had a dream run over the past 3-4 years. Over 2014-16, the CNX Midcap 100 Index has posted 21.2% CAGR returns, while the large-cap CNX Nifty Index has posted only 9.1% returns. As the earnings trajectory for large-cap gains traction, the large-cap performance could revert to the mean. Going forward, in the medium term the risk-reward seems more favourable for large-caps, given the expectation of earnings revival and the valuation differential between large-caps and midcaps. Nonetheless, the long-term potential for mid-caps remains strong since the probability of finding fast-growing and emerging companies is higher in this category.

Do large-caps make more sense at current levels or do you think mid-caps still hold more potential?

The real estate sector has seen some key developments in recent times. These include the implementation of the Real Estate Regulatory Authority (RERA), the push for affordable housing, and issuance of government sops like the Pradhan Mantri Awas Yojana. Successful implementation of RERA should be a key positive for large organised real estate companies as it would allow them to gain market share from the unorganised segment. While there are structural positives for the sector, in the near term it is witnessing oversupply in most of the key markets, due to the subdued demand over the past few years. It could take another 4-5 quarters, or more, for demand and supply in the sector to reach equilibrium. Moreover, given the poor corporate governance standards in this sector, our advise for investors is to choose and stick to quality companies that have proven track records.

Is the long -term structural story for IT firms intact or should investors moderate return expectations?

Indian IT services companies are going through a major transition as their legacy business is being challenged by newer technologies in the digital era. The legacy business is witnessing major changes on two fronts—pricing and automation. As a result of this, both volumes and pricing are under pressure. These issues are reflected in Nasscom’s revenue guidance, which has been steadily declining for several years, and stands at 6-10% for 2017-18, down from a high of 13-15% in 2014-15. Though the digital vertical is growing rapidly, for many Indian IT services companies, its contribution to overall revenue is still low, and hence, not enough to negate the pressure from the legacy vertical. In the long term, many of the key Indian IT firms should be able to successfully transition their business models, but in the near to medium term, growth could continue to be challenged for most companies in the sector.

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