Motilal Oswal AMC Logo

Motilal Oswal AMC Logo

Motilal Oswal Value Strategy PMS

KEY PORTFOLIO ATTRIBUTES #

Year of Inception 18-Feb-2003
Number of Stocks 25
Alpha (1Y) -12.16%
Beta (1Y) 0.70

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

Motilal Oswal Value Strategy PMS aims to benefit from the long term compounding effect on investments done in good businesses, run by great business managers for superior wealth creation.

Investment Strategy

Motilal Oswal Value Strategy PMS follows a value based stock selection strategy.

The strategy seeks to primarily invest in Equity and Equity-related instruments of large cap companies. However, the strategy has the flexibility to invest in companies across the entire market capitalization spectrum.

Buy Right & Sit Tight, along with QGLP (Quality, Growth, Longevity, and Price) is what the strategy focuses on. This aims at a likely earning of 20-to-25% on net worth. A balance between Growth & Value is maintained by following a bottom-up approach. The construct of about 20 stocks has a long-term view along with margin of safety – purchasing a piece of great business at a fraction of its true value.

Investment Philosophy

Motilal Oswal Value Strategy 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
Motilal Oswal AMC Value Migration0.88%9.58%25.74%56.22%25.90%19.22%19.09%15.48%19.99%
BSE 500 TRI1.66%11.93%18.86%39.47%19.78%19.45%18.98%16.70%18.25%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
ZOMATO LTD 6.90
BSE Limited 6.70
ANGEL ONE LTD 5.90
KALYAN JEWELLERS INDIA LTD 5.40
ONE 97 COMMUNICATIONS LTD 5.00
IndusInd Bank Ltd. 4.90
SUZLON ENERGY LTD 4.90
Kaynes Technology India Ltd 4.80
APAR INDUSTRIES LTD 4.60
PRESTIGE ESTATES PROJECTS LTD 4.50
Top 10 Equity Holdings 53.50

Sector Allocation


Holding %
Banks 22.70
Finance 17.10
IT - Software 8.60
Construction 8.50
Insurance 8.10
Automobiles 3.90
Healthcare Services 3.30
Electrical Equipment 3.00
Auto Components 2.90
Diversified FMCG 2.60

Market Cap Allocation


Allocations %
Large Cap 21
Mid Cap 28
Small Cap 50
Cash 1

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 29 Feb 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 Dec 23.


Do Not Simply Invest, Make Informed Decisions

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