Motilal Oswal IOP

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About company

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.

Fund Snapshot

Year of Inception 2018
Number of Stocks 20-25
Investment Horizon Medium to Long term
Fund Managers Manish Sonthalia

Unique Feature

Selection of small & mid Cap upcoming Multibagger Stocks

Investment Goal:

The strategy seeks to outperform the market by investing in stocks from industries that can gain from India’s emerging business organisations. It intends to invest primarily in small and midcap stocks, focusing on identifying potential winners. Concentrate on industries and businesses that are expected to grow faster than the average.

Types of securities are described as follows:

Equity Securities chosen as an aspect of the investment strategy: Concentrate on industries and businesses that are expected to grow faster than the average and emphasis emerging themes.

Portfolio allocation across asset classes:

The strategy seeks to invest primarily in small and mid-cap equity-related instruments. However, the strategy is adaptable enough to invest in companies with various market capitalisations.

Benchmark:

Their desired benchmark is Nifty Small Cap 100 TRI.

Investment Philosophy

Motilal Oswal’s India Opportunity Portfolio seeks long-term capital appreciation by investing in a concentrated portfolio of high-growth small and mid-cap stocks with the potential to outperform nominal GDP growth over the next 5-7 years and are readily available at affordable market prices.

Their ‘Buy Right: Sit Tight’ principle underpins investment philosophy.

The Buy Right is denoted by – (QLGP):

  • The letter “Q” represents the quality of the company and its management.
  • Earnings growth and a stable RoE are denoted by the letter “G.”
  • The letter “L” represents the business’s competitive advantage or economic moat’s longevity.
  • The letter “P” represents our approach of purchasing a good business for a fair price rather than a fair business for a fair price.

Sit Tight:

  • Purchase and hold: Strictly buy and hold, believing that selecting the right business requires skill. Holding onto these businesses to allow investors to benefit from the entire growth cycle requires even more skill.
  • Focus: We prefer a high conviction portfolio of assets with 25 to 30 stocks.

We assume adequate diversification, but over-diversification dilutes returns and increases market risk.

FAQs

What is the objective of Motilal Oswal’s IOP?

The objective behind Motilal Oswal’s India Opportunity Portfolio Strategy is to create long-term capital appreciation by making a focussed portfolio of high growth and selecting the stocks that have the potential to grow more in the next 5-7 years and are available at reasonable market prices.

Which strategy is followed in Motilal Oswal’s IOP?

It is based on a buy-and-hold strategy that needs low to medium churn to enhance post-tax returns.

Motilal Oswal’s IOP is for whom?

It is for investors who believe in investing in long-term wealth creation.

Why choose Motilal Oswal’s IOP?

  • It has a brilliant track record of over a decade.
  • Individual fund managers, having a lot of experience.
  • It is driven by an in-house team of research experts.
  • Clearly defined investment process
  • Last but not least, trust in the co-founder and its philosophy.

Define the investment philosophy followed by Motilal Oswal’s IOP?

Motilal Oswal follows a well documented and transparent philosophy:

  • Quality of business and management.
  • Growth in Volume, price, operating leverage, financial leverage.
  • Longevity of quality and growth.
  • Reasonable price valuation.

What is the objective of Motilal Oswal’s IOP?

The objective behind Motilal Oswal’s India Opportunity Portfolio Strategy is to create long-term capital appreciation by making a focussed portfolio of high growth and selecting the stocks that have the potential to grow more in the next 5-7 years and are available at reasonable market prices.

What is the objective of Motilal Oswal’s IOP?

The objective behind Motilal Oswal’s India Opportunity Portfolio Strategy is to create long-term capital appreciation by making a focussed portfolio of high growth and selecting the stocks that have the potential to grow more in the next 5-7 years and are available at reasonable market prices.

About Fund Managers

Manish Sonthalia-Chief Investment Officer

manish sonthalia

Manish Sonthalia is a Chief Investment Officer at Motilal Oswal Asset Management. It has been 11 years since is working with Motilal Oswal.Before joining Motilal Oswal, he served as Vice President of SKP Securities Ltd. and Wealth management Advisory Services Ltd till 2004.e did his graduation from B.com (Hons) St. Xavier’s College Kolkata. Mr. Sonthalia has also completed his Masters of Business Administration in Finance from IISWBM. He is always keen on writing, has written many articles, and published many finances and capital market papers.

He is always in the limelight of leading news channels and newspapers of India as well as foreign. His contribution to finance and the capital market is enormous.

Raamdeo Agrawal-Chairman, Motilal Oswal Financial Services Limited (MOFSL)

Raamdeo Agrawal Portfolio - Motilal Oswal Financial Services
Raamdeo Agrawal is a well-known value investor who believes in the power of compound interest. According to Forbes, he was one of the world’s billionaires in 2019, with a net worth of $1 billion in 2018.
Raamdeo was born and raised in a Chattisgarh hamlet. He is a dignified and disciplined man. Later, he relocated to Mumbai to pursue his dream of becoming a chartered accountant. With Ram K P. Mriparia, he co-authored the book Corporate Numbers Games. The Art Of Wealth Creation was also written by Mr. Raamdeo.
From FY95 to FY99, he had a constant track record of maximum integrity in tax payments, earning him the Rashtriya Samman Patra. for the same by the Central Board of Direct Taxes. Raamdeo Agrawal considers Warren Buffett to be a mentor, and his investment philosophy is heavily influenced by him.

Key Features And attributes of The Portfolio

  • The fund is a small-cap-oriented, concentrated portfolio of 25 stocks investing in high-growth companies.
  • Identifying companies in their early stages that have the potential to grow into midcap or large-cap companies, resulting in the creation of wealth.
  • In 2018, a new portfolio was created in the midst of difficult market conditions, and it outperformed the benchmark by 2.0% (CAGR).
  • Index agnostic: 89% off the benchmark, the Nifty Small-Cap 100 index.
  • The portfolio includes investments in non-lending financials, oil and gas, and consumer discretionary.

QGLP Framework for Small-caps Quality:

Motilal believes that while quality in some small-cap companies has yet to be proven, many are at the ‘point of emergence.’ Motilal defines the ‘Point of Emergence’ as the point at which a company begins to generate a return on equity greater than the cost of equity (typically 12%).

  • Growth: The correlation between small-cap companies and GDP growth is much stronger.
  • Longevity: Several more small-cap companies have enormous growth potential, allowing for a long runway for growth. Identifying high-quality management is the key to selecting the right small-cap companies.
  • Price: Prices are much more volatile. According to Motilal, “making money in small caps requires vision to see, courage to buy, and patience to hold.”

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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.