MOFSL was founded in 1987 with 2 employees as a sub-broking unit with their main focus of customer-first attitude, ethical and transparent business practices, and many more. Today Motilal is a diverse firm that is working on a range of financial products and services such as Private Wealth, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Home Finance, etc. Motilal has clients of retail customers, mutual funds, foreign institutional investors, financial institutions, corporate clients, etc. They have more than 44,00,000+ customers across the globe. They make every decision with solid research at present they have 25+ research analysts researching over 250 companies across 20 sectors.
|Year of Inception||2018|
|Number of Stocks||22-25|
|Investment Horizon||Medium to Long Term|
|Fund Managers||Manish Sonthalia|
The strategy’s investment goal is to achieve long-term capital appreciation by primarily investing in equity and equity-related securities across market capitalisation.
Portfolio Management Strategy
- The PMS Strategy invests in a concentrated portfolio of at least 20 stocks with high conviction.
- The portfolio is based on extensive research, leading to bottom-up stock selection with a three-year time horizon for equities.
- Portfolio with high conviction that invests across market capitalisation and will mainly focus on the following.
Consumer Discretionary: Winner of Per Capita GDP Doubling
Private Banks and NBFCs: Capitalise on Value Migration from the Public to the Private Sector.
Agriculture: A Bet on Increasing Rural Income
Affordable Housing Solution: Governments are focusing on achieving Housing for All by 2022.
GST Beneficiaries: Unorganised to Structured Business Migration.
Why is 'Buy Right: Sit Tight' important for investment?
- Real wealth is created by riding out most of a quality company’s growth curve rather than trading in and out in response to buy, sell, and hold recommendations.
- This philosophy lets investors and managers stay focused on their businesses rather than distracted by share price movements.
- A strategy of purchasing high-quality stocks and retaining them for the purpose of long-term wealth creation results in significant cost savings for the end investor.
- While the ‘Buy Right’ method relies heavily on the portfolio manager, ‘Sit Tight’ requires both the portfolio manager and the investor to participate. It requires greater accountability from the manager while also requiring greater involvement and understanding from the investor, resulting in better education for the former.
- Long-term wealth multiplication is only possible by sticking with the winners and abandoning the losers.
The Business Opportunity fund from Motilal Oswal is a focused multi-cap strategy that tries to keep the number of stocks in the portfolio to 20-25.
Motilal has a well-defined investment philosophy that focuses on long-term investments in high-quality firms that match their QGLP investment requirements. They’ve stuck to this method for over two decades, with just minor changes in style.
- Fair Strategy: focused exposure to a small number of key concepts through a targeted strategy. We value the degree of portfolio concentration Motilal employs (well below 20 stocks, major exposure in 2 sectors of financiers and consumption)
- Strong Investment Process: The long-term investment strategy of investing in high-quality firms is well established.
- Stable Investment Team: Individual fund managers with a fair amount of experience, supported by robust processes, driven by the top and internal research group knowledge.
- Performance: Business Opportunities Portfolio’s performance has been inconsistent, with just one out of every five calendar years seeing an improvement.
- Real wealth is not built by trading in and out in response to buy, sell, and hold suggestions, but rather by riding out the majority of the growth curve of high-quality enterprises.
- This mindset helps both investors and managers to maintain their attention on the companies they own rather than becoming sidetracked by changes in share prices.
- A strategy of purchasing high-quality stocks and keeping them for the purpose of long-term wealth accumulation substantially lowers expenses for the investor.
|Three Years Data||Strategy||Benchmark|
Portfolio Fundamentals And Market Cap
|Cash & Equivalents||0%|
|Q: ROE FY24E||22%|
|G: PAT Growth FY22-24E||26%|
|P: PE FY24E||18X|
About Fund Managers
Manish Sonthalia ( Fund Manager )
Manish Sonthalia, the Fund Manager at Motilal Oswal PMS, has 22 years of fund management experience. Mr. Manish Sonthalia is PMS’s Associate Director and Head of Equity. He formerly worked as the Vice President of Equity Research at Motilal Oswal Securities Ltd.
Raamdeo Agrawal is Chairman, Motilal Oswal Financial Services Limited (MOFSL) –
Raamdeo Agrawal is the chairman and co-founder of Motilal Oswal Financial Services Ltd. He is known as a renowned value investor who believes in the power of compounding. In 2019, he was among the list of billionaires according to Forbes, with a net worth of $1 billion in 2018.
Raamdeo was born and brought up in the village of Chattisgarh. He is a man with dignity and discipline. Later he moved to Mumbai to study to become a Chartered Accountant. He wrote the book Corporate Numbers Games with Ram K P. Mriparia. Mr. Raamdeo also authored The Art Of Wealth Creation.
He maintained a consistent track record of the highest integrity in tax payments for five years from FY95-FY99 and thus received Rashtriya Samman Patra by the Central Board of Direct Taxes for the same. One would be glad to know that Raamdeo Agrawal considers Warren Buffett a mentor, and his investment strategy is exceptionally inspired by him.
Description of Securities Types:
Equity Securities chose as part of the investment strategy: To invest in high-quality Indian equities in growth-oriented themes across market capitalisations via a high conviction portfolio.
Portfolio allocation across asset classes:
The strategy’s mandate is to invest in equity and equity-related instruments across the whole market capitalisation continuum, including large, mid, and small-cap companies.
Nifty 500 TRI is their optimal benchmark.
Medium to long-term tenure or investment horizon.
Importance of The 'Buy and Hold' Strategy
- This strategy results in low burnout, lower costs, and higher returns.
- A company is wisely chosen for investment after thoroughly examining its underlying hidden long-term potential.
Key Features And Portfolio Attributes
- BOP is a multi-cap strategy with a balanced allocation to large, mid, and small caps.
- Index agnostic: 80% deviation from the benchmark Nifty 500.
- 13-stock concentrated portfolio with high earnings growth
- The portfolio has been segmented into well-chosen themes, with a focus on consumer and financial services businesses, which are anticipated to perform comparatively better in an open economic ecosystem.
Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.