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 Dynamic Fund (Div-A) - 12.6854Motilal Oswal Dynamic Fund (Div-Q) - 11.1352Motilal Oswal Dynamic Fund (G) - 13.4857Motilal Oswal Dynamic Fund-Dir (Div-A) - 12.97Motilal Oswal Dynamic Fund-Dir (Div-Q) - 11.199Motilal Oswal Dynamic Fund-Dir (G) - 14.1284Motilal Oswal Equity Hybrid Fund - Direct (G) - 12.2213Motilal Oswal Equity Hybrid Fund - Regular (G) - 11.809Motilal Oswal Focused 25 Fund - Direct (D) - 18.3412Motilal Oswal Focused 25 Fund - Direct (G) - 26.718Motilal Oswal Focused 25 Fund (D) - 16.6377Motilal Oswal Focused 25 Fund (G) - 24.1457Motilal Oswal Large and Midcap Fund - Dir (D) - 10.1596Motilal Oswal Large and Midcap Fund - Dir (G) - 10.1596Motilal Oswal Large and Midcap Fund (D) - 9.9748Motilal Oswal Large and Midcap Fund (G) - 9.9747Motilal Oswal Long Term Equity Fund (D) - 14.9123Motilal Oswal Long Term Equity Fund (G) - 16.8296Motilal Oswal Long Term Equity Fund -Dir (D) - 16.2081Motilal Oswal Long Term Equity Fund -Dir (G) - 18.197Motilal Oswal Midcap 30 Fund (D) - 17.9872Motilal Oswal Midcap 30 Fund (G) - 25.1785Motilal Oswal Midcap 30 Fund-Dir (D) - 18.498Motilal Oswal Midcap 30 Fund-Dir (G) - 27.3448Motilal Oswal Multi Asset Fund - Direct (G) - 10.1155Motilal Oswal Multi Asset Fund (G) - 10.0787Motilal Oswal Multicap 35 Fund (D) - 22.6429Motilal Oswal Multicap 35 Fund (G) - 25.7011Motilal Oswal Multicap 35 Fund-Dir(D) - 22.7468Motilal Oswal Multicap 35 Fund-Dir(G) - 27.3491Motilal Oswal Nasdaq 100 FOF - Direct (G) - 17.7813Motilal Oswal Nasdaq 100 FOF - Regular (G) - 17.6453Motilal Oswal Nifty 50 Index Fund - Direct (G) - 9.6249Motilal Oswal Nifty 50 Index Fund (G) - 9.5919Motilal Oswal Nifty 500 Fund - Direct (G) - 10.8091Motilal Oswal Nifty 500 Fund (G) - 10.7286Motilal Oswal Nifty Bank Index Fund - Direct (G) - 8.7232Motilal Oswal Nifty Bank Index Fund (G) - 8.6588Motilal Oswal Nifty Midcap 150 Index Fund (G) - 11.4758Motilal Oswal Nifty Midcap 150 Index Fund-Dir (G) - 11.5618Motilal Oswal Nifty Next 50 Index Fund - Dir (G) - 9.5958Motilal Oswal Nifty Next 50 Index Fund (G) - 9.5429Motilal Oswal Nifty Smallcap 250 Index Fund (G) - 11.0429Motilal Oswal Nifty Smallcap 250 Index Fund-Dir(G) - 11.1261Motilal Oswal S&P 500 Index Fund - Direct (G) - 11.2028Motilal Oswal S&P 500 Index Fund (G) - 11.1629

5 Key mistakes investors should avoid while investing in ELSS

Equity-Linked Savings Scheme (ELSS) is a popular tax-saving investment option under the Mutual Fund investment category. With its salient features of being eligible to deduct up to Rs. 1,50,000/- under the Income Tax Act U/S 80C from your taxable income to effectively reduce your tax liability, to having a minimum investment amount of as low as Rs. 500 per month, to having the shortest  lock-in period of 3 years; ELSS investors have benefited greatly. However, not all investors are aware of the short-comings if investments are made incorrectly or haphazardly in ELSS. Read 5 Key mistakes investors should avoid while investing in ELSS;

Never late is better

A common observation is that the investors invest in ELSS only towards the end of the financial year when they have to submit their investment proofs to save tax. This is nothing but last-minute rush. An ill-strategy like this one can force many investors to invest a lump-sum amount in tax-saving instruments that may not be the best suited for them leading to cash crunch. Hence it’s wise to start your investment in ELSS at the beginning of the financial year thorough SIP. Thus you could enjoy various benefits of SIP such as disciplined investing, power of compounding, rupee cost average, besides tax benefits. After all, ‘early to rise makes one wealthy and wise’

New year does not mean new things

Another widely observed trend amongst ELSS investors is their habit of ploughing their assets in new ELSS funds every year. This has implications on your equity portfolio, because in just a couple of years, you end up accumulating too many stocks because of multiple funds that aren’t just hard to monitor but defeats the purpose having a focused yet optimally diversified portfolio. Ideally, you should stick to one ELSS fund year after year which has a focused and curated portfolio that has the potential to gain maximum returns in the long run and facilitates you to save tax. After all, ‘too much of anything is bad’

Don't be commitment-phobic

The very fundamental feature of investing in equity is to stay invested for a span of 5-7 years to witness the desired results. But this is not the case with many equity investors who invest in ELSS funds and redeem the moment the lock-in completes 3 years. Although ELSS comes with the shortest lock-in period among the other tax-saving instruments; it certainly doesn’t mean that post completing 3 years one should pull out their investments. Also, if the scheme you have invested in has been consistently delivering well and outperforming the benchmark; then it’s not advisable to redeem even if the lock-in has ended. Instead you should fuel them with more investments. After all, ‘good things come to those who wait’

Take time to understand yourself

It is important to understand that different ELSS funds have their own characteristics and one should base their preferences first towards the market-cap orientation and then towards the returns that have been generated by the select or respective schemes. This by and large depends on the risk appetite of the investor. If you are an aggressive investor, you would ideally opt for a multi-cap mutual fund scheme and if you’re a moderate investor, would select a large cap mutual fund. But more so the choice to invest in any ELSS scheme solely depends on the investors risk appetite post assessing the nature of the scheme. After all, ‘do what suits you the best’

Consistent Performer Vs. Current Performer

As mentioned earlier, the underlying feature of equity investing is to hold on to your investments for a longer time horizon because that’s when the investments can multiply better. Having said this, a very common practice investors tend to make is to select a current ‘5 star’ rated performing fund over a consistently performing fund. This could be due to external influences, tips, suggestions etc. There is no harm in selecting a scheme that has generated good returns in the past but one must cautiously assess the track record, portfolio construct and the process behind the performance of the scheme. If a consistently performing scheme has given good returns or outperformed the benchmark across the various market cycles, then it is ideal to plough your money in that particular scheme to reap the most of its growth potential. After all, ‘consistent actions create consistent results’

**Investors are advised to consult their tax advisors in view of individual nature of tax benefits. Further, Tax deduction(s) available u/s 80C of the Income Tax Act, 1961 is subject to conditions specified therein, Investors are requested to note that fiscal laws may change from time to time and there can be no guarantee that the current tax position may continue in the future.

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Disclaimer:The information herein alone is not sufficient and should not be used for the development or implementation of an investment strategy and shall not constitute as an investment advice. MOAMC shall not be liable for any direct or indirect loss arising from the use of any information contained in this document. Readers shall be fully responsible for any decision taken on the basis of this document. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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