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 Asset Allocation Passive Fund of Fund – Aggressive (G) - 10.7983Motilal Oswal Asset Allocation Passive Fund of Fund – Aggressive-Dir (G) - 10.8209Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative (G) - 10.5865Motilal Oswal Asset Allocation Passive Fund of Fund – Conservative-Dir(G) - 10.6113Motilal Oswal Dynamic Fund (Div-A) - 13.7779Motilal Oswal Dynamic Fund (Div-Q) - 12.3397Motilal Oswal Dynamic Fund (G) - 15.2031Motilal Oswal Dynamic Fund-Dir (Div-A) - 13.968Motilal Oswal Dynamic Fund-Dir (Div-Q) - 12.525Motilal Oswal Dynamic Fund-Dir (G) - 16.0723Motilal Oswal Equity Hybrid Fund - Direct (G) - 15.1516Motilal Oswal Equity Hybrid Fund - Regular (G) - 14.4676Motilal Oswal Flexi Cap Fund(D) - 25.7036Motilal Oswal Flexi Cap Fund(G) - 34.1942Motilal Oswal Flexi Cap Fund-Dir(D) - 25.7502Motilal Oswal Flexi Cap Fund-Dir(G) - 36.6249Motilal Oswal Focused 25 Fund - Direct (D) - 20.4626Motilal Oswal Focused 25 Fund - Direct (G) - 34.9544Motilal Oswal Focused 25 Fund (D) - 18.378Motilal Oswal Focused 25 Fund (G) - 31.3131Motilal Oswal Large and Midcap Fund - Dir (D) - 16.187Motilal Oswal Large and Midcap Fund - Dir (G) - 16.2009Motilal Oswal Large and Midcap Fund (D) - 15.7017Motilal Oswal Large and Midcap Fund (G) - 15.7018Motilal Oswal Liquid Fund - Direct (Div-D) RI - 10.0077Motilal Oswal Liquid Fund - Direct (Div-F) RI - 10.0094Motilal Oswal Liquid Fund - Direct (Div-M) - 10.0597Motilal Oswal Liquid Fund - Direct (Div-Q) - 10.033Motilal Oswal Liquid Fund - Direct (Div-W) RI - 10.0109Motilal Oswal Liquid Fund - Direct (G) - 11.1474Motilal Oswal Liquid Fund - Regular (Div-D) RI - 10.0055Motilal Oswal Liquid Fund - Regular (Div-F) RI - 10.009Motilal Oswal Liquid Fund - Regular (Div-M) - 10.0582Motilal Oswal Liquid Fund - Regular (Div-Q) - 10.0318Motilal Oswal Liquid Fund - Regular (Div-W) RI - 10.0178Motilal Oswal Liquid Fund - Regular (G) - 11.1038Motilal Oswal Long Term Equity Fund (D) - 20.1117Motilal Oswal Long Term Equity Fund (G) - 25.6016Motilal Oswal Long Term Equity Fund -Dir (D) - 23.9583Motilal Oswal Long Term Equity Fund -Dir (G) - 27.9534Motilal Oswal Midcap 30 Fund (D) - 22.7414Motilal Oswal Midcap 30 Fund (G) - 37.2263Motilal Oswal Midcap 30 Fund-Dir (D) - 23.512Motilal Oswal Midcap 30 Fund-Dir (G) - 40.8225Motilal Oswal Multi Asset Fund - Direct (G) - 10.796Motilal Oswal Multi Asset Fund (G) - 10.6357Motilal Oswal Nasdaq 100 FOF - Direct (G) - 23.6311Motilal Oswal Nasdaq 100 FOF - Regular (G) - 23.3802Motilal Oswal Nifty 50 Index Fund - Direct (G) - 13.1099Motilal Oswal Nifty 50 Index Fund (G) - 13.0216Motilal Oswal Nifty 500 Fund - Direct (G) - 15.4054Motilal Oswal Nifty 500 Fund (G) - 15.2165Motilal Oswal Nifty Bank Index Fund - Direct (G) - 12.5777Motilal Oswal Nifty Bank Index Fund (G) - 12.4244Motilal Oswal Nifty Midcap 150 Index Fund (G) - 18.2134Motilal Oswal Nifty Midcap 150 Index Fund-Dir (G) - 18.4464Motilal Oswal Nifty Next 50 Index Fund - Dir (G) - 13.7358Motilal Oswal Nifty Next 50 Index Fund (G) - 13.5897Motilal Oswal Nifty Smallcap 250 Index Fund (G) - 19.9293Motilal Oswal Nifty Smallcap 250 Index Fund-Dir(G) - 20.1807Motilal Oswal S&P 500 Index Fund - Direct (G) - 14.7979Motilal Oswal S&P 500 Index Fund (G) - 14.671Motilal Oswal Ultra Short Term Fund - Dir (Div-D) - 9.9503Motilal Oswal Ultra Short Term Fund - Dir (Div-F) - 9.9726Motilal Oswal Ultra Short Term Fund - Dir (Div-M) - 9.9573Motilal Oswal Ultra Short Term Fund - Dir (Div-Q) - 10.1007Motilal Oswal Ultra Short Term Fund - Dir (Div-W) - 9.9614Motilal Oswal Ultra Short Term Fund - Dir (G) - 14.0986Motilal Oswal Ultra Short Term Fund (Div-D) - 9.9076Motilal Oswal Ultra Short Term Fund (Div-F) - 9.9181Motilal Oswal Ultra Short Term Fund (Div-M) - 9.9081Motilal Oswal Ultra Short Term Fund (Div-Q) - 10.052Motilal Oswal Ultra Short Term Fund (Div-W) - 9.9111Motilal Oswal Ultra Short Term Fund (G) - 13.6457

Value Strategy Newsletter - From the Desk of Shrey Loonker and Susmit Patodia

Blog Blog Details
  • June 26, 2019
  • Shrey Loonker|
  • Fund Manger - PMS

Dear Investors,

We are pleased to commence our REGULAR COMMUNICATION with you. We believe the time is opportune as we have just closed FY19 and the uncertainty of elections is behind us.


What we bring to you in this communiqué:

A) Performance Review of your portfolio

B) Re-iterating our investment philosophy (Q G L P) and style (Buy Right Sit Tight)

C) Key Insights on the Market in FY19


We are pleased to inform you that in the 4th Quarter of FY19, your portfolio earnings grew 26% YoY vs 15% for Nifty 50 Index. This is a marked improvement over the flat earnings growth in the first 9 Months of FY19. The changes that we have made over the last few months to your portfolio have started to bear fruit. The theme of the changes is enhancing the Quality and Earnings Growth of your portfolio. True to investing principles, this improvement in portfolio’s earnings is beginning to reflect in its returns as well. After 3 years of a tough ride, CY19 to-date, your portfolio has outperformed its benchmark, albeit marginally.






CY19 (Jan-May)

Since Inception

Value Strategy








Benchmark  (Nifty 50)

















* CY: Calendar Year.

Calendar Year returns from 31st December 2013 to 31st December 2018. The above strategy returns are of a Model Client. Returns of individual clients may differ depending on time of entry in the strategy. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Returns below 1 year are absolute and above 1 year are annualized. Strategy returns shown above are post fees & expenses.

CY18 was a challenging year for the portfolio. Some of the very same stocks that gave us outsized alpha in CY14 led to the negative alpha in CY18. As Batman famously said – You either die a Hero or live long enough to see yourself become the villain! We continue to be vigilant on the companies we own.



A)    Policy Measures – A flurry of policy measures (IBC, GST and now the continuing liquidity squeeze) hurt the earnings of a large set of companies in CY2018. Larger ticket discretionary spending was most impacted (e.g. Autos). We believe such policy measures dent the near-term earnings of the companies but substantially increase the long term earnings power of Quality Companies.

B)     (C)Rude Shock – It was too nice to us for too long! The 50% up-move in 2018 took everyone by surprise. In fact, in INR terms Crude was just 10% away from its all-time highs of 2013!  This Crude Shock led to a mini Balance of Payments crisis which in turn led to the Rupee depreciation, benefitting IT stocks. We continue to believe that the IT sector is at best a 10-12% earnings growth story. For instance, 2014-19 EPS CAGR of TCS is 11%. The dollar growth in FY19 for Infosys and TCS was 8% and 10%. We continue to have very little exposure to the IT sector companies.



Q G L P stands for

Q – Quality Companies – Quality Businesses run by Quality Managements

G – Growth in earnings and earnings capability

L – Longevity of Q and G

P – Reasonable Price

The above philosophy guides our behavior and not a benchmark’s constituents and weights. We do not think of Under-Weight, Over-Weight, Equal-Weight with respect to a benchmark. It is a freedom that we would like to thank you for giving us and a promise that we will not abuse it.

Buy Right Sit Tight means

BUY RIGHT simply means buying Q G L P stocks. This is not a one-time exercise, rather a continuous one, wherein, we re-assess and re-test our initial hypothesis at regular intervals. Only companies that conform to this test over the long-term, SIT TIGHT in our portfolios. Buying Right helps you stay for long, which in turn helps us leverage the long term power of compounding.

§  20% Compounded for 10 Years is 6x

§  20% Compounded for 20 Years is 38x 

§ 20% Compounded for 30 Years is 237x 

§ 20% Compounded for 50 Years is a STAGGERING 9000x 

So if you invest ONE Lakh for your kid as soon as she is born and the same compounds at 20%, it will turn to 91 Crores by the time she is 50! COMPOUNDING is THE EIGHTH WONDEROF THE WORLD. Most of us have not seen all the original seven but THIS ONE ISFOR ALL OF US TO LIVE WITH & ENJOY.

The example cited above is used to explain the concept of compounded returns and is for illustration purpose only and should not be used for development or implementation of an investment strategy. It should not be construed as investment advice to any party.


A)    FY19 stands out as a unique year in the way the markets performed. During the year, Nifty gained 1510points (15%). Of this, over 1000 points (~2/3rd) were from just 5 stocks – Reliance Industries, HDFC Bank, Infosys, TCS and Hindustan Unilever. Such narrow attribution has not been seen in the last decade. It is interesting to note here that Reliance FY19 EPS grew 9.5% while Infosys was flat! This implies their stock returns were a result of PE re-rating - Change in perception towards these companies and/or flight to relative certainty.

B)    It was also the first time in the last decade that each of the largest 5 companies by market cap out performed the benchmark.

The above two observations are critical to understand and assimilate. Such polarization and narrowness of the market pose a significant challenge for active fund managers.


We expect market returns to become broad-based in due course of time. With this, your portfolio returns should at least sustain its current pace, if not accelerate, given the robust earnings growth that we estimate.


Shrey Loonker and Susmit Patodia 

Disclaimer: *Earnings as of March 2019 quarter and market prices as on 31st May 2019; Source: Bloomberg consensus, Capitaline and Internal Analysis. The above strategy returns are of a Model Client as on 31st May 2019. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Motilal Oswal AMC does not provide any guarantee/ assurance any minimum or maximum returns. Investment insecurities is subject to market and other risks and there is no assurance or guarantee that the objectives of any of the strategies of Portfolio Management Services will be achieved.

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