Toppers in different categories by 1-year returns:
- Mid Cap: Motilal Oswal Midcap
- Large & Midcap: Motilal Oswal Large & Midcap
- Flexi Cap: Motilal Oswal Flexi Cap
What has worked for @MotilalOswalAMC?
We dug into their portfolios & found 4 fascinating insights. A 🧵 x.com
- Mid Cap: Motilal Oswal Midcap
- Large & Midcap: Motilal Oswal Large & Midcap
- Flexi Cap: Motilal Oswal Flexi Cap
What has worked for @MotilalOswalAMC?
We dug into their portfolios & found 4 fascinating insights. A 🧵 x.com
1. Common Stocks
There’s a lot of overlap among the top holdings of the four schemes.
For instance, they all have sizable investments in Kalyan Jewellers, Trent, & Zomato.
Interestingly, these are missing in the Focused Fund, which hasn’t done well.
There’s a lot of overlap among the top holdings of the four schemes.
For instance, they all have sizable investments in Kalyan Jewellers, Trent, & Zomato.
Interestingly, these are missing in the Focused Fund, which hasn’t done well.
This is not a recent phenomenon.
If you check their portfolios from a year ago, you will see a similar trend—the four schemes have many common stocks.
Since these stocks have done well, they have benefitted all of them.
If you check their portfolios from a year ago, you will see a similar trend—the four schemes have many common stocks.
Since these stocks have done well, they have benefitted all of them.
Why does this happen?
In every fund house, the investment management team is the same.
They have the same view on the economy, markets and stocks.
So, overlap among their schemes is quite common.
We have a detailed blog on this. The link is in the comments.
In every fund house, the investment management team is the same.
They have the same view on the economy, markets and stocks.
So, overlap among their schemes is quite common.
We have a detailed blog on this. The link is in the comments.
2. Unique Investments
The fund house takes outsized bets on stocks that others don’t.
For instance, its Flexi Cap scheme allocates 83.07% of its corpus to its top 10 stocks.
Its peers, on average, allocate just 8.67% to those 10 stocks.
This is also true for other funds.
The fund house takes outsized bets on stocks that others don’t.
For instance, its Flexi Cap scheme allocates 83.07% of its corpus to its top 10 stocks.
Its peers, on average, allocate just 8.67% to those 10 stocks.
This is also true for other funds.
There’s more.
Motilal Oswal is among the few fund houses that take unique bets (See image)
For example, in its October portfolio, the fund house had 14 stocks in which no other fund house had any investments. x.com
Motilal Oswal is among the few fund houses that take unique bets (See image)
For example, in its October portfolio, the fund house had 14 stocks in which no other fund house had any investments. x.com
3. Concentrated Portfolios
Schemes from this fund house invest in around 30 stocks or less than that.
This number is far less than its peers.
So, if its top 4-5 stocks perform well, the scheme’s returns can take off.
Schemes from this fund house invest in around 30 stocks or less than that.
This number is far less than its peers.
So, if its top 4-5 stocks perform well, the scheme’s returns can take off.
This strategy of having a concentrated portfolio can also backfire.
If a few stocks underperform, the scheme’s portfolio can suffer.
This seems to have happened with Motilal Oswal Focused Fund, whose holdings are quite different from others.
If a few stocks underperform, the scheme’s portfolio can suffer.
This seems to have happened with Motilal Oswal Focused Fund, whose holdings are quite different from others.
4. Combination of Conviction & Pragmatism
The fund manager doesn’t stick to any one style of investing.
On one hand, some stocks have been part of the portfolio for over six years. On the other hand, the fund manager doesn’t mind capturing short-term opportunities.
The fund manager doesn’t stick to any one style of investing.
On one hand, some stocks have been part of the portfolio for over six years. On the other hand, the fund manager doesn’t mind capturing short-term opportunities.
Examples of some long-term bets 👇
In Motilal Oswal Midcap Fund, Voltas was held for nearly 9 years. Then there are other stocks like Bajaj Finance and Astral.
We have a detailed video on this scheme’s strategy. The link is in the comments.
In Motilal Oswal Midcap Fund, Voltas was held for nearly 9 years. Then there are other stocks like Bajaj Finance and Astral.
We have a detailed video on this scheme’s strategy. The link is in the comments.
Examples of how fund managers captured short-term opportunities. 👇
Motilal Oswal Large & Midcap fund entered Max Financial Services in Mar 2023 and exited within 10 months. During this time, the stock’s price jumped from Rs 635 to Rs 955.
JB Chemicals & Pharmaceuticals is another example.
Motilal Oswal Large & Midcap fund entered Max Financial Services in Mar 2023 and exited within 10 months. During this time, the stock’s price jumped from Rs 635 to Rs 955.
JB Chemicals & Pharmaceuticals is another example.
The fund managers also seem practical in managing the portfolio.
They are quick to cut losses if investments don’t meet their expectations.
Examples: Persistent System and Usha Martin in Motilal Oswal Midcap Fund.
They are quick to cut losses if investments don’t meet their expectations.
Examples: Persistent System and Usha Martin in Motilal Oswal Midcap Fund.
Overall, 3 of the 4 top-performing schemes have seen higher churning (buy and selling). Motilal Oswal Large & Midcap is an exception.
This shows the fund managers of these schemes don’t stick to the traditional buy-and-hold approach. x.com
This shows the fund managers of these schemes don’t stick to the traditional buy-and-hold approach. x.com
Have you invested in any of Motilal Oswal MF’s equity schemes?
Will these funds continue to do well?
This is not the first time that a fund house’s schemes are making waves.
We have seen this trend with schemes from Quant MF, Axis MF, Mirae Asset MF, etc.
So, if you invest in active equity funds, diversify across fund houses.
This is not the first time that a fund house’s schemes are making waves.
We have seen this trend with schemes from Quant MF, Axis MF, Mirae Asset MF, etc.
So, if you invest in active equity funds, diversify across fund houses.
Our blog on why it is better to diversify across AMCs while investing in ACTIVE EQUITY SCHEMES.
Note that this doesn't really apply to passive schemes. Find out why. 👇
etmoney.com
Note that this doesn't really apply to passive schemes. Find out why. 👇
etmoney.com
Review of Motilal Oswal Midcap scheme.
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