Motilal Oswal BOP

The strategy’s investment goal is to achieve long-term capital appreciation by primarily investing in equity and equity-related securities across market capitalisation.

• 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.

• 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.