Motilal Oswal AMC Logo

Motilal Oswal AMC Logo

MOTILAL OSWAL Business Opportunities Portfolio (BOP PMS)

KEY PORTFOLIO ATTRIBUTES #

Year of Inception
Number of Stocks
Alpha (1Y)
Beta (1Y)

About MOTILAL OSWAL Asset Management

Motilal Oswal Asset Management Company Ltd. is promoted by Motilal Oswal Financial Services Limited (MOFSL). Lead by one of the most well-known investors in India Mr. Raamdeo Agrawal, Motilal Oswal AMC is almost synonymous with philosophy based investing – its flagship philosophy “Quality Growth Longevity and Price” ( QGLP ) and “Buy Right and Sit Tight” which have popularized well researched investing.

Key People

Raamdeo Agrawal
Raamdeo Agrawal Chairman
Prateek Agrawal
Prateek Agrawal Executive Director
Manish Sonthalia
Manish Sonthalia Executive Director & CIO

Investment Objective

The investment objective of Motilal Oswal’s Business Opportunities Portfolio or BOP PMS is to achieve long term capital appreciation by primarily investing in equity & equity related across market capitalization.

Investment Strategy

Motilal Oswal’s Business Opportunities Portfolio or BOP PMS invests in a high conviction concentrated portfolio of minimum 20 stocks. The aim is to invest across high quality Indian equities in growth oriented themes across market capitalisation through a high conviction portfolio.

The portfolio has been positioned in well-chosen themes: primarily select consumer and financial services businesses which are expected to perform relatively better in open up economic environment.

The portfolio is based on in-depth research leading to bottom-up stock picking with a view of equities from 3 – 4 years perspective. BOP is a multi-cap strategy with a balanced mix of Large Cap, Mid Cap and Small Cap allocation.

Motilal Oswal’s Business Opportunities Portfolio or BOP PMS is a high Conviction portfolio which primarily focuses on:

1. Consumer Discretionary – Beneficiary of Doubling of per Capita GDP
2. Private Banks and NBFC – Play on Value Migration from Public sector to Private sector
3. Agriculture – A Play on Rising Rural Income
4. Affordable housing – Governments Focus on Housing for All by 2022
5. GST Beneficiaries – Business Migration from Unorganized to Organized

Investment Philosophy

Investment philosophy is centered on ‘Buy Right: Sit Tight‘ principle.

Q-G-L-P Demystified

Motilal Oswal’s Business Opportunities Portfolio or BOP PMS follows the ‘Buy Right & Sit Tight’ policy, predominantly to invest in small & Mid Cap with focus on potential winners. Focus on sectors & Companies which promise a higher-than-average Growth by focusing on QGLP (Quality, Growth, Longevity, and Price).

• Buy Right is represented by – (QLGP)
“Q” denotes the quality of the business and management
“G” denotes growth in earnings and sustained RoE
“L” denotes longevity of the competitive advantage or economic moat of the business
“P” denotes our approach of buying a good business for a fair price rather than buying a fair business for a good price

• Sit Tight
Buy and Hold: Strictly buy and hold and believe that picking the right business needs skill and holding onto these businesses to enable investors to benefit from the entire growth cycle needs even more skill.
Focus: High conviction portfolios with 25 to 30 stocks being our ideal number. We believe in adequate diversification but over-diversification results in diluting returns and add market risk.

Why ‘Buy Right, Sit Tight’ is significant?

• Real wealth is created by riding out bulk of the growth curve of quality companies and not by trading in and out in response to buy, sell and hold recommendations.

• This philosophy enables investor and manager alike to keep focus on the businesses they are holding rather than get distracted by movements in share prices

• An approach of buying high quality stocks and holding them for a long term wealth creation motive, results in drastic reduction of costs for the end investor.

• While BUY RIGHT is largely the role of the portfolio manager, SIT TIGHT calls for involvement from the portfolio manager as well as investor. This brings in greater accountability from the manager and at the same time calls for better involvement and understanding from investor resulting in better education for the latter.

• Long term multiplication of wealth is obtained only by holding on to the winners and deserting the losers.

Wealth Creators – Buy and Hold strategy

• BUY & HOLD strategy, leading low churn, lower costs and enhanced returns

• A business is prudently picked for investment after a thorough study of its underlying hidden long-term potential.

• “We don’t get paid for activity, just for being right. As to how long we’ll wait, we’ll wait indefinitely.” -Warren Buffett

Awards & Achievements - Across Motilal Oswal PMSs & AIFs

• In 2021, Motilal Oswal Next Trillion Dollar Opportunity Portfolio (NTDOP) was awarded Rank #1 as the Best PMS across all categories, on a 10Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2021, Motilal India Rising India Fund, a Long Only Cat III AIF, was awarded the winner in the Best Long Only Cat III AIF, on 2Y Absolute Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2020, Motilal Oswal Next Trillion Dollar Opportunity Portfolio (NTDOP) was awarded Rank #3 as the Best PMS across all categories, on a 10Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2020, Motilal Oswal Next Trillion Dollar Opportunity Portfolio (NTDOP) was awarded Rank #3 as the Best PMS across all categories, on a 5Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Do Not Simply Invest, Make Informed Decisions

WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

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Disclaimer

#Returns as of 31 May 2024. Returns up to 1 Year are absolute, above 1 Year are CAGR.

*QRC Report Card data is updated quarterly. Current data is as of Mar 24.


Do Not Simply Invest, Make Informed Decisions

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