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Motilal Oswal Mutual Funds
Motilal Oswal Asset Management Company was incorporated in November 2018 by Motilal Oswal Group. The AMC is responsible for managing the different Motilal Oswal Mutual Fund schemes as well as Portfolio management services. The company also undertakes other business activities pertaining to managing and offering advisory services related to offshore funds, exchange of research, financial consultancy and so on as long as the necessary regulatory approvals are in place.
A mutual fund can be described as an investment fund that is professionally managed by experts in the field. The fund is made up of money pooled from different investors.
Investment Philosophy
Motilal Oswal Asset Management Company follows the “Buy Right, Sit Tight” policy, wherein stocks of quality companies are bought at a reasonable price and staying invested in them for a longer period of time to realize the full growth potential of the companies’ stocks. Motilal Oswal Asset Management Company considered the following factors before investing in a company’s stocks:
- Quality of business and management
- The longevity of the competitive edge over peers in the market
- Growth in earnings and sustained RoE
- Considering a fair price for the business rather than a good price
Types of Mutual Funds Offered By Motilal Oswal
- Motilal Oswal Liquid Fund
- Motilal Oswal Nasdaq 100 Fund Of Fund
- Motilal Oswal Focused 25 Fund
- Motilal Oswal Midcap 30 Fund
- Motilal Oswal Multicap 35 Fund
- Motilal Oswal Long Term Equity Fund
- Motilal Oswal Dynamic Fund
- Motilal Oswal Equity Hybrid Fund
- Motilal Oswal Ultra Short Term Fund
Motilal Oswal Liquid Fund
| Description | This is an open-ended liquid fund that offers reasonable returns by investing in instruments like Treasury Bills, Commercial Deposits of Scheduled Commercial Banks which have a maturity of up to 90 days, Cash Management Bills and Tri-Party Repo. |
| Objective | The objective of this mutual fund is to generate optimal returns that have high liquidity to the investors with the help of a portfolio of money market securities. |
| Risk Profile | Low |
| Benchmark | CRISIL Liquid Fund Index |
| Type of Scheme | Open-ended liquid fund |
| Minimum Investment | Rs.500 and in multiples of Re. 1thereafter. |
| Entry Load | Nil |
| Exit Load | Nil |
The NAV or price that an investor is charged in an open-ended scheme like Motilal Oswal Liquid Fund is called the subscription or sale price. Pertaining to the SEBI Circular dated June 30th, 2009, the investors are not to be charged any entry load by the scheme. Hence, the Subscription or Sale Price= Applicable NAV. For example, if an investor invests Rs 20000 and the current NAV is Rs.20, then the purchase price will also be Rs.20 and thereby, the investor receives 20000/20 = 1000 units.
The redemption or repurchase price is the NAV or the price at which the open ended scheme redeems, or purchases is units from the investors. This may include exit load, depending on the terms of the scheme. In case exit load is applicable, it is charged as a percentage of the applicable NAV. Hence, Redemption or Repurchase Price= Applicable NAV*(1-Exit Load, if present). For example, if a 2% Exit Load is charged and the Applicable NAV is Rs.10, the Redemption Price per Unit is calculated as Rs.10 * (1-0.02) = Rs.10 * (0.98) which leads to Rs.9.80.
Motilal Oswal Nasdaq 100 Fund Of Fund
| Description | This is an open-ended liquid fund that offers reasonable returns by investing in instruments like Treasury Bills, Commercial Deposits of Scheduled Commercial Banks which have a maturity of up to 90 days, Cash Management Bills and Tri-Party Repo. |
| Objective | The objective of this mutual fund is to seek returns by investing in Motilal Oswal Nasdaq 100 ETF units. |
| Risk Profile | High |
| Benchmark | NASDAQ-100 Index |
| Type of Scheme | An open-ended fund of fund scheme that invests in Motilal Oswal Nasdaq ETF |
| Minimum Investment | Rs.500 |
| Entry Load | Nil |
| Exit Load | Nil |
Benefits of investing in Motilal Oswal NASDAQ 100 Fund of Funds:
- Exposes investors to other currency, especially US dollars
- Allows further diversification and investment into less correlated and uncorrelated assets
- Benefit from the tremendous growth in global businesses in healthcare, technology and other frontier sectors
Motilal Oswal NASDAQ 100 Fund of Fund is a passive fund that invests in units of Motilal Oswal NASDAQ 100 ETF, which is an underlying scheme. This underlying scheme has a track record of more than seven years and Motilal Oswal Nasdaq100 Fund of fund allows investors to invest small amounts with higher liquidity.
The NASDAQ 100 Index can be described as an equity index with the top hundred domestic and international non-financial securities that have been listed on the NASDAQ stock exchange in the United States of America. The Fund of Fund offers investors exposure to equity in the United States, thereby diversifying their asset allocation as an investor.
Motilal Oswal NASDAQ 100 ETF is one of India’s first United States-based ETF. It is a rupee denominated investment where the investor level does not fall below the $200k foreign investment cap. This scheme belongs to the high-risk category and offers high returns at the same time.
Motilal Oswal Focused 25 Fund
| Description | The fund focuses on achieving long term capital appreciation. This is achieved by investing in twenty-five companies that display long term sustainable competitive advantage as well as growth potential. |
| Objective | The objective of this mutual fund is to seek returns by investing in 25 companies that display growth potential and competitive advantage. |
| Risk Profile | Moderately High |
| Benchmark | Nifty 50 TRI |
| Category | Focused Fund intending to invest in large-cap stocks |
| Type of Scheme | An open-ended equity scheme |
| Minimum Investment | Rs. 500 and in multiples of Re. 1 thereafter |
| Entry Load | Nil |
| Exit Load | Nil, if redeemed after fifteen days from the date of allotment. 1%, if redeemed on or before fifteen days from the date of allotment. A withdrawal shall also incur the Exit Load like any Redemption.. No Exit Load applies for switch between MOF25, MOF30, MOF35, MOFEH & MOFDYNAMIC. There is no Load for switch between Options if it is within the Scheme |
Motilal Oswal Focused 25 Fund is suitable for investors who are looking for:
- Returns after investing in up to 25 companies which display a sustainable competitive advantage as well as growth potential.
- Investments in Equity related and Equity instruments that are subject to a limit of twenty-five companies.
This mutual fund is structured to create a portfolio that excels as a medium and long term investment. The ‘360 degree view’ of Motilal Oswal allows the company to identify competitive advantages while picking out which companies to invest in.
The allocations are structured as follows:
- Minimum 65%: Top hundred listed companies by full market capitalization
- Maximum 35%: Equity and equity-related instrument other than those mentioned above
- Maximum 10%: Money Market Instruments. Debt, Bonds. G-Sec, Cash equivalents, Cash, etc.
- Maximum 10%: Units issued by INVITs(Infrastructure Investment Trusts) and REITs(Real Estate Investment Trusts)
Motilal Oswal Midcap 30 Fund
| Description | This is mid-cap fund is an open-ended equity scheme that concentrates predominantly in investing in mid-cap stocks |
| Objective | This scheme focuses on achieving long term capital appreciation by investing in a maximum of thirty quality midcap companies that have long term competitive advantages as well as the potential for growth. |
| Risk Profile | Moderately High |
| Benchmark | Nifty Midcap 100 TRI |
| Category | Midcap Fund |
| Type of Scheme | An open-ended equity scheme investing in maximum thirty stocks with a focus on Large Cap stocks |
| Minimum Investment | Rs.500 and in multiples of Re. 1 thereafter |
| Entry Load | Nil |
| Exit Load | Nil, if redeemed after fifteen days from the date of allotment. 1%, if redeemed on or before fifteen days from the date of allotment. A withdrawal shall also incur the Exit Load like any Redemption. No Exit Load applies for switch between MOF25, MOF30, MOF35, MOFEH & MOFDYNAMIC. There is no Load for switch between Options if it is within the Scheme |
Motilal Oswal Midcap 30 Fund is suitable for investors who are looking for:
- Long term capital growth
- Investment in equity and equity-related instruments in a maximum of thirty quality midcap companies that display long term competitive advantages as well as growth potential.
This fund is considered to be at a moderately high-risk level. The allocations are structured as seen below:
- Minimum 65%: Between Top 101st and 250th listed companies in full market capitalization
- Maximum 35%: Equity and equity related instruments other than those mentioned above
- Maximum 10%: Money Market Instrument, Debt, Bonds, G-Sec, Cash Equivalents, Cash, etc.
- Maximum 10%: Units issued by INVITs(Infrastructure Investment Trusts) and REITs(Real Estate Investment Trusts)
So far the fund has focused on Banks, Finance and Auto Ancillaries as the top three sector exposures. The portfolio comprises of a wide range of sectors as well.
With an investment horizon of medium to long term, this fund is the perfect fit for investors who want to invest with a long term wealth creation view.
Motilal Oswal Multicap 35 Fund
| Description | This multi-cap fund is an open-ended equity scheme that invests across large-cap, mid-cap and small-cap stocks. |
| Objective | This scheme focuses on achieving long term capital appreciation by mainly investing in a maximum of thirty-five equity& equity related instruments across different sectors and market capitalization levels. |
| Risk Profile | Moderately High |
| Benchmark | Nifty 500 TRI |
| Category | Multicap Fund |
| Type of Scheme | An open-ended equity scheme investing in maximum thirty-five stocks with a focus on large-cap, mid-cap and small-cap stocks |
| Minimum Investment | Rs.500 and in multiples of Re. 1 thereafter |
| Entry Load | Nil |
| Exit Load | Nil, if redeemed after fifteen days from the date of allotment. 1%, if redeemed on or before fifteen days from the date of allotment. A withdrawal shall also incur the Exit Load like any Redemption..No Exit Load applies to switch between MOF25, MOF30, MOF35, MOFEH & MOFDYNAMIC. There is no Load for switch between Options if it is within the Scheme |
Motilal Oswal Multicap 35 Fund is suitable for investors who are looking for long term capital growth and want to invest in a maximum of thirty-five equity and equity-related instruments across different sectors and market capitalization levels. The portfolio allocation is structured, as seen below:
- Minimum 65%: Equities
- Maximum 35%: Money Market/Debt Instruments
The fund may invest in foreign securities up to ten per cent of net assets. The fund takes advantage of the ‘360 degree view’ of the company to identify competitive advantages. The top three sectors present in the portfolio include Banks, Software and Finance. The portfolio is well represented across different sectors. The scheme is focused on achieving long term capital appreciation by investing in only up to 35 companies across different sectors based on their market capitalization levels.
Motilal Oswal Long Term Equity Fund
| Description | This is an open-ended equity-linked saving scheme with a statutory lock-in of three years as well as a tax benefit. |
| Objective | This scheme focuses on generating long-term capital appreciation from a diversified portfolio of mainly equity and equity-related instruments. |
| Risk Profile | Moderately High |
| Benchmark | Nifty 500 TRI |
| Category | ELSS |
| Type of Scheme | An open-ended equity-linked saving scheme along with a statuary lock-in of three years as well as tax benefits. |
| Minimum Investment | Rs.500 and in multiples of Re. 1 thereafter |
| Entry Load | Nil |
| Exit Load | Nil, if redeemed after fifteen days from the date of allotment. 1%, if redeemed on or before fifteen days from the date of allotment. A switch-out or a withdrawal will have Exit Load like any Redemption. No Exit Load applies for switch between MOF25, MOF30, MOF35, MOFEH & MOFDYNAMIC. There is no Load for switch between Options if it is within the Scheme |
Motilal Oswal Long Term Equity Fund is suitable for investors who are looking for long term capital growth by investing mainly in equity and equity-related instruments. The scheme is rated at a moderately high-risk level. It belongs to the ELSS or Equity Linked Saving Schemes category. ELSS are those mutual funds which allow the investor to save taxes while creating wealth by investing in equities and equity-related instruments. If you are able to bear risk ELSS is a great option. These schemes are actually similar to diversified equity mutual funds.
Although the wealth creation potential of ELSS is high, many investors stay away from them from fear of losing money during market drops. The lock-in period offered by Motilal Oswal Long Term Equity Fund ensures that the short term market volatility is ignored with more focus on wealth creation. In fact, ELSS offers the long term investment that comes with the shortest lock-in period among different Tax Savings investment Avenues.
Motilal Oswal Dynamic Fund
| Description | This is An open-ended dynamic asset allocation fund |
| Objective | This scheme focuses on generating long term capital appreciation by investing in equity and equity-related instruments as well as equity derivatives, money market instruments, debt, and units issued by INVITs and REITs. |
| Risk Profile | Moderately High |
| Benchmark | CRISIL Hybrid 35 + 65 – Aggressive |
| Category | Dynamic Asset Allocation |
| Type of Scheme | An open-ended dynamic asset allocation fund |
| Minimum Investment | Rs.500 and in multiples of Re. 1 thereafter |
| Entry Load | Nil |
| Exit Load | Nil, if redeemed after fifteen days from the date of allotment. 1%, if redeemed on or before fifteen days from the date of allotment. A withdrawal will inccur Exit Load. No Exit Load applies for switch between MOF25, MOF30, MOF35, MOFEH & MOFDYNAMIC. No Load is there for switch between Options if it is within the Scheme |
Motilal Oswal Dynamic Fund is suitable for investors who are looking for long term capital appreciation by investing in equity, derivatives and debt instruments. Dynamic Asset allocation is considered to be better than other options as it is often made between equity, debt/cash based on market valuation parameters. It allows rebalancing of decisions based on a well-defined and time tested model that gets rid of biases of any kind. Dynamic asset allocation also helps avoid tax liability. The risk-adjusted returns are similar to investments in equity and with low volatility across market conditions.
The allocation of Motilal Oswal Dynamic Fund is done based on Motilal Oswal Value Index (MOVI). The MOVI values help gauge the equity market valuation. MOVI is calculated by considering Price to Earnings, Dividend Yield of Nifty 50 Index and Price to Book values.
Motilal Oswal Equity Hybrid Fund
| Description | This is an open-ended hybrid scheme investing mainly in equity and equity-related instruments |
| Objective | This scheme focuses on generating equity-linked returns by investing in a combined portfolio of equity and equity-related instruments, money market instruments, debt and units issued by Infrastructure Investment Trust(INVITs) and Real Estate Investment Trust (REITs). |
| Risk Profile | Moderately High |
| Benchmark | CRISIL Hybrid 35 + 65 – Aggressive |
| Category | Aggressive Hybrid Fund |
| Type of Scheme | An open-ended hybrid scheme investing mainly in equity and equity-related instrument |
| Minimum Investment | Rs.500 and in multiples of Re. 1 thereafter |
| Entry Load | Nil |
| Exit Load | Nil, if redeemed after fifteen days from the date of allotment. 1%, if redeemed on or before fifteen days from the date of allotment. A withdrawal shall also incur the Exit Load like any Redemption. No Exit Load applies for switch between MOF25, MOF30, MOF35, MOFEH & MOFDYNAMIC. |
Motilal Oswal Equity Hybrid Fund is suitable for investors looking for long term capital appreciation by generating equity-linked returns. By making investments in equity and equity-related instruments. This mutual fund has a moderately high-risk level
Motilal Oswal Equity Hybrid Fund allocated between fixed income and equity instruments. The equity allocation helps with wealth creation over a long period of time and even protects from market volatility by adding stability. Equity hybrid funds usually target returns that are greater than debt funds with lower volatility than equity funds. Equity hybrid funds are considered to be better than equity and debt funds as they display effective allocation of 65% equity and 35% debt. They also display an effective risk at 14.6%
The objective of this fund is to generate equity-linked returns by investing in a mixed portfolio of equity and equity-related instruments, money market instruments, debt, and units issued by Infrastructure Investment Trust (INVITs) and Real Estate Investment Trust (REITs).No exit load is applied for a switch between, Motilal Oswal Midcap 30 Fund, Motilal Oswal Focused 25 Fund, Motilal Oswal Dynamic Fund and Motilal Oswal Multicap 35. Investors also have the option of withdrawing up to 12% per annum of the original investment cost within a year if they have opted for the CashFlow option
Motilal Oswal Ultra Short Term Fund
| Description | This is an open-ended ultra short term debt scheme that invests in instruments so that the duration of the portfolio is between three to six months. |
| Objective | This scheme gives more importance for optimal returns consistent with moderate levels of risk and liquidity. This is done by investing in debt securities and money market securities. |
| Risk Profile | Moderately High |
| Benchmark | CRISIL Ultra Short Term Debt TRI |
| Category | Ultra Short Duration Fund |
| Type of Scheme | An open-ended ultra short term debt scheme that invests in instruments so that the duration of the portfolio is between three to six months. |
| Minimum Investment | Rs.500 and in multiples of Re. 1 thereafter |
| Entry Load | Nil |
| Exit Load | Nil |
MOVI Pack Plan
The MOVI (Motilal Oswal Value Index) Pack Plan is a transfer plan from Motilal Oswal Ultra Short Term Fund to Motilal Oswal Midcap 30 Fund. Motilal Oswal Focused 25 Fund and Motilal Multicap 35 Fund. This Pack allows allocation between equity debt asset classes based on the MOVI (Motilal Oswal Value Index) levels.
The MOVI (Motilal Oswal Value Index) helps assess the equity market. The Index is calculated by considering the Price to Earnings, Dividend Yields of the Nifty 50 Index and Price to Book values. A low MOVI level is a clear indication of cheap market valuation and indicates that one can allocate a higher percentage of their investments as an asset class to Equity. A high MOVI level is a clear indication that the market valuation is on the expensive side and on can reduce their equity allocation if they wish to do so.
Some of the key features of the MOVI Pack Plan include:
- Helps plan your investments
- It is a Systematic Transfer Plan
- Helps you take advantage of the changing market valuations.
- No need to track markets constantly for ideal entry time in Equities
- No more indecisions about investments during volatile or bearish markets
The minimum investment amount for the MOVI Pack Plan under the STP enrolment option is Rs.1000 and under the One Time enrolment option is Rs.5000. The MOVI Pack Plan does not have any maximum investment period, allowing investors to take advantage of the plan as long as they desire. Anyone can subscribe to the MOVI Pack Plan by investing in Motilal Oswal Ultra Short Term Bond Fund and enrolling for the MOVI Pack Plan option while filling out the enrolment form.
Motilal Oswal CashFlow Plan
The MOF-CP or Motilal Oswal CashFlow Plan allows investors to withdraw a fixed sum from their investment in the schemes of Motilal Oswal Mutual Fund at a fixed percentage of the initial investments at a predetermined frequency regardless of the current market value of the investments. However, withdrawals are subject to the availability of the investor’s account balance. The different options available include:
- At 7.5% per annum of the original cost of investment
- At 10% per annum of the original cost of investment
- At 12% per annum of the original cost of investment
The schemes eligible under Motilal Oswal CashFlow Plan include Motilal Oswal Midcap 30 Fund, Motilal Oswal Focused 25 Fund, Motilal Oswal Dynamic Fund and Motilal Oswal Multicap 35 Fund.
Benefits Of Motilal Oswal CashFlow Fund:
The key benefits offered by this plan include:
- It generates regular cash flow
- The investor is allowed to withdraw money as and when they require
- Tax efficiency
- The regular withdrawal average out return value, it helps save the investor from market fluctuations
FAQs: Motilal Oswal Mutual Funds
1. How does Motilal Oswal CashFlow fund work?
The pay-out is calculated on the basis of the lump sum investment. This is why the plan is valid only for Motilal Oswal plans that offer lump-sum investments. If only a partial redemption is requested, the payouts occur on the original investment cost and not the remaining investment based on the account balance availability. If the account balance is lower than the desired amount, the redemption is allowed for the available amount and then the folio is closed. Opting for Motilal Oswal CashFlow Fund allows investors to get a fixed income each month, quarter or year.
2. What are the documents required for investing in Motilal Oswal Mutual Funds?
- Application form
- PAN card
- Passport size photo
- Address proof ( Driving License, Ration Card, Voters ID, Passport, Latest Bank Account Statement, Registered Leave or Sale of Agreement Residence, Latest Electricity or Gas Bill)
- KYC Form
- Check or Demand Draft to make the payment
3. How to invest in Motilal Oswal Mutual Funds?
There are several different options available to invest in any one of Motilal Oswal Mutual Funds. You can either use the official website to submit the required documents and fill out the application form. You can also walk into the nearest branch and talk to the customer representatives to find out which Mutual Fund offered by Motilal Oswal will meet your requirements. You can also talk to our online customer representative to find out more details about each Mutual Fund.
4. Why should you choose Motilal Oswal Mutual Funds?
Motilal Oswal Asset Management Company follows the “Buy Right, Sit Tight” policy, wherein stocks of quality companies are bought at a reasonable price and staying invested in them for a longer period of time to realize the full growth potential of the companies’ stocks. Motilal Oswal Asset Management Company considered the following factors before investing in a company’s stocks:
- Growth in earnings and sustained RoE
- Quality of business and management
- Considering a fair price for the business rather than a good price
- The longevity of the competitive edge over peers in the market
This ensures that you, as an investor, will receive the best returns on your investment. After all, every investor is looking for wealth creation when they turn to mutual funds for investments.
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