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 Asset Allocation Passive Fund of Fund – Aggressive (G) - 10.6741Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive-Dir (G) - 10.6893Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative (G) - 10.5364Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative-Dir(G) - 10.5532Motilal Oswal Dynamic Fund (Div-A) - 13.5064Motilal Oswal Dynamic Fund (Div-Q) - 12.0966Motilal Oswal Dynamic Fund (G) - 14.9036Motilal Oswal Dynamic Fund-Dir (Div-A) - 13.6715Motilal Oswal Dynamic Fund-Dir (Div-Q) - 12.2594Motilal Oswal Dynamic Fund-Dir (G) - 15.7315Motilal Oswal Equity Hybrid Fund - Direct (G) - 14.9593Motilal Oswal Equity Hybrid Fund - Regular (G) - 14.3119Motilal Oswal Flexi Cap Fund(D) - 24.9521Motilal Oswal Flexi Cap Fund(G) - 33.1944Motilal Oswal Flexi Cap Fund-Dir(D) - 24.9694Motilal Oswal Flexi Cap Fund-Dir(G) - 35.5144Motilal Oswal Focused 25 Fund - Direct (D) - 20.4246Motilal Oswal Focused 25 Fund - Direct (G) - 34.8895Motilal Oswal Focused 25 Fund (D) - 18.3723Motilal Oswal Focused 25 Fund (G) - 31.3034Motilal Oswal Large and Midcap Fund - Dir (D) - 15.0008Motilal Oswal Large and Midcap Fund - Dir (G) - 15.0008Motilal Oswal Large and Midcap Fund (D) - 14.57Motilal Oswal Large and Midcap Fund (G) - 14.57Motilal Oswal Liquid Fund - Direct (Div-D) RI - 10.0077Motilal Oswal Liquid Fund - Direct (Div-F) RI - 10.0068Motilal Oswal Liquid Fund - Direct (Div-M) - 10.0442Motilal Oswal Liquid Fund - Direct (Div-Q) - 10.0694Motilal Oswal Liquid Fund - Direct (Div-W) RI - 10.0083Motilal Oswal Liquid Fund - Direct (G) - 11.1042Motilal Oswal Liquid Fund - Regular (Div-D) RI - 10.0055Motilal Oswal Liquid Fund - Regular (Div-F) RI - 10.0066Motilal Oswal Liquid Fund - Regular (Div-M) - 10.0434Motilal Oswal Liquid Fund - Regular (Div-Q) - 10.0663Motilal Oswal Liquid Fund - Regular (Div-W) RI - 10.0154Motilal Oswal Liquid Fund - Regular (G) - 11.0628Motilal Oswal Long Term Equity Fund (D) - 18.9673Motilal Oswal Long Term Equity Fund (G) - 24.1448Motilal Oswal Long Term Equity Fund -Dir (D) - 22.5586Motilal Oswal Long Term Equity Fund -Dir (G) - 26.3202Motilal Oswal Midcap 30 Fund (D) - 21.9396Motilal Oswal Midcap 30 Fund (G) - 35.9137Motilal Oswal Midcap 30 Fund-Dir (D) - 22.6487Motilal Oswal Midcap 30 Fund-Dir (G) - 39.3237Motilal Oswal Multi Asset Fund - Direct (G) - 10.7049Motilal Oswal Multi Asset Fund (G) - 10.5652Motilal Oswal Nasdaq 100 FOF - Direct (G) - 21.7182Motilal Oswal Nasdaq 100 FOF - Regular (G) - 21.4982Motilal Oswal Nifty 50 Index Fund - Direct (G) - 13.1123Motilal Oswal Nifty 50 Index Fund (G) - 13.0304Motilal Oswal Nifty 500 Fund - Direct (G) - 15.2785Motilal Oswal Nifty 500 Fund (G) - 15.1033Motilal Oswal Nifty Bank Index Fund - Direct (G) - 12.6493Motilal Oswal Nifty Bank Index Fund (G) - 12.505Motilal Oswal Nifty Midcap 150 Index Fund (G) - 17.9037Motilal Oswal Nifty Midcap 150 Index Fund-Dir (G) - 18.1149Motilal Oswal Nifty Next 50 Index Fund - Dir (G) - 13.6955Motilal Oswal Nifty Next 50 Index Fund (G) - 13.5607Motilal Oswal Nifty Smallcap 250 Index Fund (G) - 18.3538Motilal Oswal Nifty Smallcap 250 Index Fund-Dir(G) - 18.5688Motilal Oswal S&P 500 Index Fund - Direct (G) - 14.0875Motilal Oswal S&P 500 Index Fund (G) - 13.9767Motilal Oswal Ultra Short Term Fund - Dir (Div-D) - 9.91Motilal Oswal Ultra Short Term Fund - Dir (Div-F) - 9.9314Motilal Oswal Ultra Short Term Fund - Dir (Div-M) - 9.9171Motilal Oswal Ultra Short Term Fund - Dir (Div-Q) - 10.0598Motilal Oswal Ultra Short Term Fund - Dir (Div-W) - 9.921Motilal Oswal Ultra Short Term Fund - Dir (G) - 14.0415Motilal Oswal Ultra Short Term Fund (Div-D) - 9.8772Motilal Oswal Ultra Short Term Fund (Div-F) - 9.8877Motilal Oswal Ultra Short Term Fund (Div-M) - 9.8777Motilal Oswal Ultra Short Term Fund (Div-Q) - 10.0212Motilal Oswal Ultra Short Term Fund (Div-W) - 9.8807Motilal Oswal Ultra Short Term Fund (G) - 13.6038

The Best Return Days Are When You Least Expect It

Blog Blog Details
  • April 27, 2020
  • Susmit Patodia|
  • Associate Director - PMS
Down markets are very tough to handle primarily because of two factors that stress us

A) We think things are going to get worse 
B) We feel a sense of loss of control

To these, you add the third factor that there are only very few avenues to let off steam in the current lockdown situation

The three together are a potent force to ensure that most of our decision making are when our minds are stressed which leads to more short term frame of reference during the decision making. This is what causes a lot of us to bail out nearly almost always at the wrong time. So bailing out is a physiological response and something that we might be able to control once we realize the same. These times also make us think a lot about timing the market – If only we had sold at 12000 Nifty and bought it at 7500!

This brings us to the next aspect which is how do we make money in the markets – There are two ways to make money in the markets from a timing perspective – First, We always sell at the top and re-buy at the bottom. Second is to remain invested and not worry about the timing. This is what you would have often heard from most successful long term investors as – It is not about timing but spending time in the markets. 



As you can observe, the first way involves two extremely tough decisions to be made and both have to be right for us to make money. The second one involves no decision making but a lot of stomach to digest the quotation loss. Most of us want to try the first way of timing as the upside is huge if we get it right and more importantly, it involves a lot of decision making. In tough times like these, we as humans love decision making because the more decisions we make, the more in control we feel.  Here is where the data is interesting and gives key insights into why lesser the decisions we make the more we are likely to make in the markets. 

Nifty in the last 30 years (10900 days) has returned a CAGR of 12.2% which gives us a return of 31 times. The table below gives you an interesting perspective

Source: MOAMC Internal Analysis
The above data/ information is used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. Past performance may or may not be sustained in future.

As you can see, a bulk of equity returns are made in just a few days. If you missed just 30 out of the 10900 days, your returns came down from 31 times to just 3 times! The near impossible part is to figure out which are those days, hence spending time is important as these days can happen when you least expect them to. The next set of analytics give us something more to ponder about

Source: MOAMC Internal Analysis
The above data/ information is used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. 

As you can see, 60% of the best 30 days of returns actually happened in bear markets which if we try to time are most likely to be missed! The logical next question is why does this happen? The famous Anthony Bolton (One of Fidelity’s greatest Fund Managers) said - “The most money in equity markets is made when things go from bad to less bad” is the most lucid answer to the question. The above analysis was an eye opener for me and gave me greater confidence to stick to TIME IN MARKETS VS TIMING THE MARKETS.

To finish off, a quick visit to the most basic tenets of equity investing that are all-weather – Firstly, EQUITIES are the only investments that allow you to earn return on returns and second being that COMPOUNDING is a mathematical truth. The longer you stay, the more you are likely to earn returns by letting the magic of compounding work for you. A simple illustration - 15% compounded for 50 years is a staggering 1080x. The only thing left to do is to buy Quality companies which will Grow profitably for a Long period and buy them at a Price which is reasonable – What we call at Motilal Oswal as Q G L P 

Stay Safe, Happy Investing


The information contained in this document is for general purposes only and not a complete disclosure of every material fact and 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. 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. Investment in securities is subject to market and other risks, and there is no assurance or guarantee that the objectives of any of the strategies will be achieved. Please read Disclosure document carefully.



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