Motilal Oswal Asset Management Company Ltd. (MOAMC) is a public limited company incorporated under the Companies Act, 1956 on November 14, 2008, having its Registered Office at 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai - 400025.
Motilal Oswal Asset Management Company Ltd. has been appointed as the Investment Manager to Motilal Oswal Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 21, 2009, executed between Motilal Oswal Trustee Company Ltd. and Motilal Oswal Asset Management Company Ltd.
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Motilal Oswal Dynamic Fund (Div-A) - 12.7662Motilal Oswal Dynamic Fund (Div-Q) - 11.9583Motilal Oswal Dynamic Fund (G) - 13.5717Motilal Oswal Dynamic Fund-Dir (Div-A) - 13.048Motilal Oswal Dynamic Fund-Dir (Div-Q) - 11.9481Motilal Oswal Dynamic Fund-Dir (G) - 14.2134Motilal Oswal Equity Hybrid Fund - Direct (G) - 12.2938Motilal Oswal Equity Hybrid Fund - Regular (G) - 11.8847Motilal Oswal Focused 25 Fund - Direct (D) - 18.4352Motilal Oswal Focused 25 Fund - Direct (G) - 26.8549Motilal Oswal Focused 25 Fund (D) - 16.7289Motilal Oswal Focused 25 Fund (G) - 24.2781Motilal Oswal Large and Midcap Fund - Dir (D) - 10.1291Motilal Oswal Large and Midcap Fund - Dir (G) - 10.1291Motilal Oswal Large and Midcap Fund (D) - 9.95Motilal Oswal Large and Midcap Fund (G) - 9.95Motilal Oswal Liquid Fund - Direct (Div-D) RI - 10.0077Motilal Oswal Liquid Fund - Direct (Div-F) RI - 10.0132Motilal Oswal Liquid Fund - Direct (Div-M) - 10.0521Motilal Oswal Liquid Fund - Direct (Div-Q) - 10.0253Motilal Oswal Liquid Fund - Direct (Div-W) RI - 10.0082Motilal Oswal Liquid Fund - Direct (G) - 10.8948Motilal Oswal Liquid Fund - Regular (Div-D) RI - 10.0055Motilal Oswal Liquid Fund - Regular (Div-F) RI - 10.0126Motilal Oswal Liquid Fund - Regular (Div-M) - 10.051Motilal Oswal Liquid Fund - Regular (Div-Q) - 10.0245Motilal Oswal Liquid Fund - Regular (Div-W) RI - 10.0153Motilal Oswal Liquid Fund - Regular (G) - 10.8649Motilal Oswal Long Term Equity Fund (D) - 14.9086Motilal Oswal Long Term Equity Fund (G) - 16.8254Motilal Oswal Long Term Equity Fund -Dir (D) - 16.1973Motilal Oswal Long Term Equity Fund -Dir (G) - 18.1849Motilal Oswal Midcap 30 Fund (D) - 17.5377Motilal Oswal Midcap 30 Fund (G) - 24.5493Motilal Oswal Midcap 30 Fund-Dir (D) - 18.0281Motilal Oswal Midcap 30 Fund-Dir (G) - 26.6502Motilal Oswal Multi Asset Fund - Direct (G) - 10.1484Motilal Oswal Multi Asset Fund (G) - 10.1161Motilal Oswal Multicap 35 Fund (D) - 22.8978Motilal Oswal Multicap 35 Fund (G) - 25.9904Motilal Oswal Multicap 35 Fund-Dir(D) - 22.9968Motilal Oswal Multicap 35 Fund-Dir(G) - 27.6496Motilal Oswal Nasdaq 100 FOF - Direct (G) - 18.5953Motilal Oswal Nasdaq 100 FOF - Regular (G) - 18.4552Motilal Oswal Nifty 50 Index Fund - Direct (G) - 9.7987Motilal Oswal Nifty 50 Index Fund (G) - 9.7663Motilal Oswal Nifty 500 Fund - Direct (G) - 10.9386Motilal Oswal Nifty 500 Fund (G) - 10.8592Motilal Oswal Nifty Bank Index Fund - Direct (G) - 8.8564Motilal Oswal Nifty Bank Index Fund (G) - 8.7927Motilal Oswal Nifty Midcap 150 Index Fund (G) - 11.3754Motilal Oswal Nifty Midcap 150 Index Fund-Dir (G) - 11.4584Motilal Oswal Nifty Next 50 Index Fund - Dir (G) - 9.6038Motilal Oswal Nifty Next 50 Index Fund (G) - 9.5527Motilal Oswal Nifty Smallcap 250 Index Fund (G) - 11.1281Motilal Oswal Nifty Smallcap 250 Index Fund-Dir(G) - 11.2098Motilal Oswal S&P 500 Index Fund - Direct (G) - 11.5799Motilal Oswal S&P 500 Index Fund (G) - 11.5411Motilal Oswal Ultra Short Term Fund - Dir (Div-D) - 9.7078Motilal Oswal Ultra Short Term Fund - Dir (Div-F) - 9.726Motilal Oswal Ultra Short Term Fund - Dir (Div-M) - 9.7147Motilal Oswal Ultra Short Term Fund - Dir (Div-Q) - 9.8543Motilal Oswal Ultra Short Term Fund - Dir (Div-W) - 9.7185Motilal Oswal Ultra Short Term Fund - Dir (G) - 13.7551Motilal Oswal Ultra Short Term Fund (Div-D) - 9.7113Motilal Oswal Ultra Short Term Fund (Div-F) - 9.7217Motilal Oswal Ultra Short Term Fund (Div-M) - 9.7118Motilal Oswal Ultra Short Term Fund (Div-Q) - 9.853Motilal Oswal Ultra Short Term Fund (Div-W) - 9.7147Motilal Oswal Ultra Short Term Fund (G) - 13.3756

Buy Right Sit Tight

Knowledge Center Buy Right Sit Tight

Buying quality companies and riding their growth cycle

1.Invest in Equity; the time is always right

I. Why Equity?

Beware of the ‘I’ word

Over FY79–14 CPI inflation has been 8.1%, eroding purchasing power of Rupee by 94% Inflations erodes purchasing power of money

 

Source: Bloomberg, MOAMC Internal Analysis | Data as on May 31, 2015

The value of Rs 100 in 1979 is now Rs 5.62

II. Which asset class to invest in?

FDs/Gold or Equities? Survive or Thrive? Choice is yours

Source : Bloomberg, MOAMC Internal Analysis, Data as on May 31, 2015 Past performance may or may not be sustained in future. The above graph is used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy.

III. The time is always right

Can you afford to miss out on the next big leap?

The above graph is used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy. Above forward-looking graphs/statements are based on external current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results. Past performance may or may not be sustained in future. This is an info graphic of the article published on economictimes.com on Dec 8, 2014

IV. Downs are temporary; ups are permanent

NIFTY


“Don’t be afraid of the next 25% downtick.
afraid of MISSING the next 100% uptick”

The above graph is used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy. Past performance may or may not be sustained in future. Source: Bloomberg; MOAMC Internal Analysis | Data as on: May 31, 2015 | NIFTY inception date: 1st April 1996

V. We are in the middle of a bull run

Sensex

Source: Bloomberg | Data as on: May 31, 2015

The earlier you start the higher you’ll climb

The above graph is used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy. Past performance may or may not be sustained in future.

VI. The time is always right; it’s the stock that you pick that need to be right

Buying the right stocks and holding onto them can give you returns far in excess of inflation

Here are some compounded annual rates of growth from well known companies by holding them on for 20 years or since listing


Data as on May 31, 2015 | Source : Capitaline The Stocks mentioned above are used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy. It should not be construed as investment advice to any party. The stocks may or may not be part of our portfolio/strategy/ schemes. Past performance may or may not be sustained in future.

2.The recommended way to Create Wealth from equity-'Buy Right : Sit Tight'

‘Buy Right' means buying quality companies at a reasonable price and 'Sit Tight' means staying invested in them for a longer time to realise the full growth potential of the stocks. It is a known fact that good quality companies are in business for decades but views about these companies change every year, every quarter, every month and sometimes every day! While many of you get the first part of identifying good quality stocks, most don’t stay invested for a long enough time. The temptation to book profits at 25% or 50% or even 100% returns in a 1 to 3 year period is so natural that you miss out on the chance of generating substantial wealth that typically happens over the long term; say a 10 year period.

I. Our Investment Philosophy

At Motilal Oswal Asset Management Company (MOAMC), our investment philosophy and investing style is centered on 'Buy Right: Sit Tight‘ principal.

Buy Right Stock Characteristics

QGLP

  • ‘Q’uality denotes quality of the business and management
  • ‘G’rowth denotes growth in earnings and sustained RoE
  • ‘L’ongevity denotes longevity of the competitive advantage or economic moat of the business
  • ‘P’rice denotes our approach of buying a good business for a fair price rather than buying a fair business for a good price

Sit Tight Approach

Buy and Hold: We are strictly buy and hold investors and believe that picking the right business needs skill and holding onto these businesses to enable our investors to benefit from the entire growth cycle needs even more skill.

Focus: Our portfolios are high conviction portfolios with 20 to 25 stocks being our ideal number. We believe in adequate diversification but over-diversification results in diluting returns for our investors and adding market risk

II. Buy Right = QGLP Stocks

Over the years MOAMC has conducted various Wealth Creation Studies. These studies and our passion for equity investing has helped us hone a unique and focused investing process that can be summarised in 4 letters - ‘QGLP’.

Where; 'Q'uality denotes quality of the business and management, 'G'rowth denotes growth in earnings and sustained RoE, 'L'ongevity denotes longevity of the competitive advantage or economic moat of the business and 'P'rice denotes our approach of buying a good business for a fair price rather than buying a fair business for a good price. This approach has helped us to identify many quality stocks in our portfolios.

III. Quality

Quality Business

  • Sustained competitive advantage measured by high return ratios
  • Industry leadership position
  • Favorable industry structure like monopoly or oligopoly
  • Secular and stable business, preferably consumer facing
  • Limited use of leverage

Quality Management Competence

  • Industry leading margins
  • Rational capital allocation policy
  • Good dividend payout policy
  • Innovative
  • Integrity
    • Honest and trustworthy
    • Transparent

IV. Growth

  • Growing Large addressable market
  • Gaining market share
  • Understanding various margin growth levers
  • Preferably growth within profitable business

V. Longevity

  • Long competitive advantage period
  • Understanding growth potential for 10-15 years

VI. Price

Reasonable price

  • Discount to historical P/E trading band
  • P/B Discount
  • Price/earnings to growth (PEG) Ratio
  • DCF (Discounted cash flow)
  • Replacement Value Discount
  • Popular/Unpopular idea
  • Payback ratio
  • Dividend yield

VII. QGLP stocks perform across good and bad times

Data as on April 30, 2015 | Source : Capitaline

The Stocks mentioned above are used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy.

It should not be construed as investment advice to any party. The stocks may or may not be part of our portfolio/strategy/ schemes. Past performance may or may not be sustained in future

VIII. Sit Tight – Buy and Hold

Benefit of Buy and Hold:

If you had invested Rs. 100 in Sensex in 1979, your investment would have multiplied to Rs. 2,681 with dividend and to Rs. 1,569 without dividend.

(After adjusting inflation)

The above graph is used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy. Past performance may or may not be sustained in future.

IX. Sit Tight – Focus

The Power of Focus

Diversification beyond your control becomes unmanageable and adds no value to your portfolio. Over diversification can impact the overall performance of your portfolio. As in case of most portfolios, the top 5 good quality stocks contribute 80% of overall performance of your portfolio while the rest 20% by bad quality stocks.

3.100x The power of growth in Wealth Creation through BRST

I. What is 100x?

  • “100x” refers to stock prices rising 100-fold over time
  • The exact number “100” is not so important
  • What is important is –
    • 100x opens the mind to the power of long-term compounding in equity investing

II. These are 47 enduring 100x stocks over 1994-2014

Note: The multiples are based on stocks being purchased at the lowest prices for the respective year, and held on to 31st March 2014. The Stocks mentioned above are used to explain the concept and is for illustration and comparison purpose only and should not be used for development or implementation of an investment strategy. It should not be construed as investment advice to any party. The stocks may or may not be part of our portfolio/strategy/ schemes. Past performance may or may not be sustained in future.

III. 100x – Powerful mantra for big Wealth Creation

  • To make money in stocks you must have –
    • The vision to see them
    • The courage to buy them and
    • The patience to hold them.
  • Patience is the rarest of the three.

IV. 100x and Compounding

Understanding the Time-Rate combination for 100x

Long-period return of BSE Sensex is 17%

ie Sensex rises 100x in the last 30 years

The above graph is used for illustration purpose only and should not be used for development or implementation of an investment strategy. Past performance may or may not be sustained in future.
Source: 19th Wealth Creation Study

V. Why 100x?

100x enables accumulation of massive purchasing power

In fixed income investing, the average annual post-tax return works out to about 7%. If the same is reinvested, over 20 years, the security may be worth about 4x its original value. Now, if inflation also turns out to be 7%, then at the end of 20 years, there is zero increase in purchasing power. In contrast, an equity stock may rise 100x, say, in 20 years (in select cases, it takes much less time). Now, at 7% inflation, this 100x is tantamount to purchasing power of 26x (i.e. 100÷3.9).

The above graph is used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy.
Past performance may or may not be sustained in future.

VI. 100x – The Indian Experience

Indian benchmark indices rise 100x in 30 years

Source: Bloomberg | Data as on 31st December 2014
The above graph is used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy. Past performance may or may not be sustained in future.

VII. 100x – The Indian Experience

Two kinds of 100x stocks in last 20 years (1994-2014):

  • TRANSITORY
    • Mainly fads and cyclicals which fizzled out after rising 100x
    • Satyam computer, SSI, Unitech, Jai Corp, Mercator, etc
  • ENDURING
    • Meaningful size and scale of operations
    • Saw stock prices rise 100x or more during the period
    • And most importantly, maintained their 100x status even as of march 2014 (financial year-end)

The Stocks mentioned above are used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy.
It should not be con

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