Motilal Oswal MOSt Focused Multicap 35 Fund : Motilal Oswal Multicap 35 Fund : Fund Review

Motilal Oswal MOSt Focused Multicap 35 Fund has been renamed to Motilal Oswal Multicap 35 Fund. It’s a very recent player in the category of multi-cap funds. It has been performing exceptionally well and has also entered the 5-star category with good rankings. The fund follows a focused strategy with almost 80% of its assets parked in large caps. It is suitable for investors who have a medium to long-term goals. The fund manager, Mr. Gautam Roy has 15 years of rich and diversified experience in fund management and research.

 

Performance

Motilal Oswal Multicap 35 Fund is in the top 5 list of multi-cap category. Motilal Oswal MF has been performing exceptionally well since its inception in April 2014. It has consistently beaten its benchmark since its inception. The funds 3-year trailing returns are higher than its benchmark. With the fund beta at 0.85, the fund has performed better than the market in its worst period. The fund delivered an annualized return of 21.77% since inception as against 13.68% by Nifty 500 TRI, its benchmark.

Motilal Oswal Multicap 35 Fund has beaten its category by 7 percentage points and its benchmark by 2 percentage points in the 3-year returns. Motilal Oswal MOSt Focused Multicap 35 Fund is in line with its peers in its performance in the 3-year returns. It is also ranked second in the category of multi-cap funds by CRISIL.

Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)
Motilal Oswal Multicap 35-11.06%14.06%-
Kotak Standard Multicap-3.56%14.99%19.37%
Mirae Asset India Equity Fund-3.34%16.21%19.35%
SBI Magnum Multicap Fund-7.30%12.57%19.10%
ABSL Equity Fund-7.15%15.06%19.14%

A SIP investment of Rs 5,000 a month in Motilal Oswal MOSt Focused Multicap 35 Fund started at the time of inception is worth Rs 3.73 lakhs. A profit of Rs 0.83 lakhs in just 4 years.

Fund Information

This 4.5-year old fund has performed extremely well in the market since its inception. Like all other Motilal Oswal funds, this fund follows the buy right sit tight strategy. It follows the Quality, Growth, Longevity and Price framework to select stocks. The fund manager follows the ‘360-degree view’ of every company he chooses for his portfolio to identify its competitive advantages. The maximum number of stocks this fund can have is 35 and currently is maintains a 27 stock portfolio with 80% of the portfolio dedicated to large caps.

Motilal Oswal Multicap 35 Fund invests in emerging and enduring wealth creators. Motilal Oswal MF believes that buying the right needs skill but holding it requires a lot more skill. The fund believes that its investors can reap more benefits when they hold the chosen stocks for an entire business cycle.

Motilal Oswal MOSt Focused Multicap 35 Fund believes adequate diversification with 20-25 stocks in the portfolio as over-diversification can dilute investor returns. The top five holding sectors constitute 88.4% of the portfolio. These include financial services (22.28%), banks (20.28%), software (13.08%), auto (11.07%), and consumer non-durables (7.285%).

Recommendation

Motilal Oswal Multicap 35 Fund is ideal for medium-term goals to long-term goals. Investors whose risk-taking ability is moderate can look at investing in this fund. While the fund has performed astonishingly well till now, it’s still too short of a period to draw conclusions about its performance. Investors looking for long-term wealth creation can look at this fund to invest. The only drawback of this its expense ratio. It’s slightly on the higher end. So it is suggested to consider this before considering to invest in this fund.

Fund NameMotilal Oswal Multicap 35 Fund
Launch DateApril 28th, 2014
AUMRs 13,180 Cr
Return (Returns greater than 1 year are annualized)Since Launch: 20.46%
1 Year: -11.06%
3 Year: 14.06%
Expense Ratio2.06%
Fund Category RiskHigh
Investment PlanGrowth
Minimum Investment Horizon5+ years
Minimum InvestmentRs 5,000
Minimum Additional InvestmentRs 1,000
Exit Load1% if withdrawn within 1 year
Fund ManagerGautam Roy
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