Motilal Oswal Multifactor Equity PMS

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Welcome to AIF & PMS Experts India Pvt. Ltd.

About company

In 1987, Motilal Oswal Financial Services Ltd. (MOFSL) was established as a little sub-broking operation, with just 2 persons in charge. Their growth into an 8600+ member team has been made possible by Their commitment to putting the needs of Their customers first, ethical and transparent business practices, professionalism, research-based value investment, and the use of cutting-edge technology.

Fund Snapshot

Date of Inception 6 May 2021
Number of Stocks 20-30
Name of Fund Manager Sankaranarayanan Krishnan

About Motilal Oswal Asset Management

Motilal Oswal has a well-diversified financial services company that offers a variety of financial goods and services, including private wealth, retail and institutional broking, asset management, investment banking, private equity, commodity trading, currency trading, and home financing. Retail clients (including High Net Worth Individuals), mutual funds, overseas institutional investors, financial institutions, and corporate clients make up Their diverse clientele. 

Their main office is in Mumbai, and as of September 2021, Their network included 550 cities and towns, with 2500+ Business Locations run by us, Their Business Partners, and more than 34,000,000+ clients. Research serves as the firm basis on which MOFSL recommendations are founded. They spend about 10% of Their sales on equities research, and they recruit and develop the top professionals to serve as Their advisers. We now have around 25 research analysts investigating over 250 businesses across 20 industries. 

The media has extensively covered Motilal Oswal’s research reports from a fundamental, technical, and derivatives research standpoint. The scores and ranks in the AsiaMoney Brokers Poll have risen over the years, reflecting Their constant efforts to produce high-quality equities analysis. Additionally, They were admitted into the “Hall of Fame” at the 10th Financial Advisory Awards 2019. They were recognized as the Best Performing Equity Broker (National) at the CNBC TV18 Financial Advisor Awards for five years running.

Buy Right. Sit Tight

The only 100% equities fund manager in India with a clear investing philosophy, An asset management organization with a strong point of differentiation, we aim to provide targeted mutual funds, PMS, and AIF strategies based on our primary competencies in equities research and investing. Our sponsor, Motilal Oswal Financial Services Limited, which has over 30 years of experience under the direction of our founder and thought leader, Raamdeo Agrawal, provides us with equity expertise. Our unique investing methodology has grown and is continually being enhanced by the application, insights, and practical lessons of our seasoned equities investment and research team through his 25 Annual Wealth Creation Studies series.

Our equity offerings have been based on our investment tenet, Buy Right: Sit Tight, where Buy Right refers to purchasing high-quality, growth-oriented businesses at a fair price and Sit Tight refers to maintaining investment in them for a considerable amount of time in order to realize the full growth potential of the underlying business. We aim to manage portfolios with about 20–25 high conviction holdings and little portfolio churn, along with a “Buy and Hold” approach.

Learning from the Cockroach

Survive

Killing cockroaches is challenging. They are capable of surviving even nuclear apocalypses.

Compound

Cockroaches multiply quickly. They can quickly increase in number.

Investors may benefit from a portfolio that may profit from market declines and multiply during market expansion times.

Investment Objective

The Multifactor Equity PMS from Motilal Oswal aims to build a portfolio that outperforms the overall market over the cTheirse of the investment cycle by taking diversified exposure to several investing factors using a methodical, rules-based methodology.

About Fund Manager

Sankaranarayanan Krishnan

Sankaranarayanan Krishnan

Sankaranarayanan Krishnan works with Motilal Oswal Asset Management Company Ltd. as a quant fund manager for PMS and AIF schemes. Along with overseeing the firm’s factor and quantitative research, he is also in charge of managing the funds, which is his main role. He has more than 9 years of expertise in the capital markets, with much of that time spent on developing, analysing, and administering quantitative investing methods. He previously worked as a multifactor model portfolio manager for an alternative investment company called Alpha Alternatives.

He worked as a senior quantitative researcher at Morgan Stanley Capital International before that, where he designed multi-factor and ESG solutions for customers who were global pension and sovereign wealth funds. Sankaranarayanan has an MBA from the Indian Institute of Management in Indore and a degree in engineering from the National Institute of Technology in Nagpur.

Portfolio Strategy

The quantitative portfolio construction methodology of Motilal Oswal’s Multifactor Equity PMS tries to allocate to firms that rate well on common investing characteristics, including quality, value, momentum, and low volatility.

The Investment Factors

  • Any quality that contributes to an asset’s long-term risk and returns performance is a factor.
  • Factors serve as the basic building elements of all investing processes.
  • E.g.: Momentum, Quality, Value, Low Vol, etc.

Commonly used Factors

  • Momentum: 12 M Returns, 6 M Returns
  • Quality: Leverage, Profitability
  • Value: Price / Book, Price / Earnings, Dividend Yield
  • Volatility: Beta, Standard, Deviation

MFE PMS Stock Selection Framework

  • Opportunity Universe: Restrict Universe from 51-300 by Market Capitalization
  • Apply Quality Filter: ~75 companies selected based on Quality Filter
  • Choose businesses based on their value and momentum: a portfolio of 20–25 companies based on value and momentum
  • Quarterly Portfolio Rebalancing

Unique Characteristics of the Portfolio

  • Style diversification – use of multiple factors simultaneously
  • Elimination of fund manager bias – rule-based portfolio creation
  • Adaptive portfolio – Quarterly churn leading to portfolio positioning for changing market conditions (Churn Rate: ~140% p.a.)
  • Higher consistency of performance
  • Low correlation & exposure to Nifty 50

Book a call with our experts

For any queries, contact us on Mobile: +91 84211 19491, Landline: 020-48627339,Toll Free: 1800 210 1995, Email: [email protected]     Whatsapp-logo

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.