Are you looking for a way to grow your money fast? The Motilal Oswal Midcap Direct Growth Fund might be what you need. It’s a top choice for those wanting to see their investments soar1.
Key Takeaways
- Motilal Oswal Midcap Fund – Direct Plan has delivered a 5-year annualized return of 34.63%, ranking 1st in its category1.
- The fund’s NAV stands at ₹125.6279 as of December 21, 2024, with an AUM of ₹22,898 Cr2.
- The fund has a very high risk level and an expense ratio of 0.54%2.
- The fund invests 99.39% of its portfolio in domestic equities, with a focus on mid-cap stocks1.
- Investors can benefit from the fund’s long-term performance track record of 26.33% since inception2.
Understanding Motilal Oswal Midcap Fund Basics
The Motilal Oswal Midcap Fund is a mid-cap equity fund. It aims to give high returns to those who invest for 3-4 years3. It’s a high-risk fund, with 99.39% of its assets in domestic equities3.
The fund’s portfolio includes large-cap, mid-cap, and small-cap stocks. It has 10.59% in large-cap, 12.71% in mid-cap, and 20.9% in small-cap stocks3.
Fund Classification and Category
The Motilal Oswal Midcap Fund is an Equity Mid Cap fund. It invests in companies with a market cap between the 101st to 250th largest3. This helps investors tap into the growth of mid-cap companies in India.
Investment Objective and Strategy
The fund aims to grow your money over the long term by investing in mid-cap companies3. It focuses on a diversified portfolio of 27 stocks, less than the average of 72.62 stocks3. This strategy is to find and invest in the best mid-cap opportunities.
Fund Management Team
The fund is managed by a team of five experienced fund managers from Motilal Oswal Asset Management Company Ltd. (MOAMC)3. They have an average of 3.79 years of experience3. This team works to implement the fund’s strategy and make decisions to help investors earn consistent returns.
Current Fund Performance and NAV Analysis
As of December 21, 2024, the Motilal Oswal Midcap Direct Growth fund has a Net Asset Value (NAV) of ₹125.62792. This shows a -3.05% change in its value. The fund has outperformed the market, with returns of 59.93% in the last year, 38.17% over 3 years, and 34.63% in 5 years4.
It ranks 1st in its category for 1-year, 3-year, and 5-year returns5. This highlights its strong performance compared to others.
The fund’s year-to-date (YTD) return is 55.95%, beating the category average of 29.79%4. This shows the fund’s skill in the market and its ability to provide consistent returns. It also has a 26.33% return since its start, making it a solid investment choice2.
| Performance Metric | Motilal Oswal Midcap Direct Growth | Benchmark (Nifty Midcap 150 TRI) |
|---|---|---|
| 1-Year Returns | 59.93%4 | 49.82% |
| 3-Year Returns | 38.17%4 | 31.84% |
| 5-Year Returns | 34.63%4 | 27.74% |
The Motilal Oswal Midcap Direct Growth fund consistently beats its benchmark, the Nifty Midcap 150 TRI, in different time frames5. It’s a solid choice for those looking to invest in the midcap market and aim for long-term growth.
Direct vs Regular Plans: Making the Right Choice
Investing in the Motilal Oswal Midcap Fund gives you two options: Direct and Regular plans. Your choice affects your long-term gains, as the expense ratio is key. It determines how much you keep from your investment.
Expense Ratio Comparison
The Direct plan of Motilal Oswal Midcap has a 0.57% expense ratio, lower than the 0.73% average for Regular plans6. This is because Direct plans don’t have broker and distributor commissions. These savings can add up over time, boosting your returns.
Impact on Long-term Returns
The expense ratio difference between Direct and Regular plans significantly affects long-term returns6. Over five years, Direct plans offer returns from 8.23% to 17.60%, outpacing Regular plans6. The gap in annualized returns can reach 150 basis points for equity and balanced funds, and 60 basis points for bond funds6. This Direct plan advantage grows more over 15-20 years6.
Benefits of Direct Plans
Choosing the Motilal Oswal Midcap Direct plan has several benefits7. It has a lower cost structure, eliminating commission fees to brokers and advisors8. This means more potential returns for you, as the savings grow over time8. Direct plans are ideal for those who research and choose funds themselves. Regular plans are better for those who value broker or advisor guidance8.
Choosing between Direct and Regular plans for the Motilal Oswal Midcap Fund depends on your investment needs and knowledge8. Understanding the expense ratio and long-term benefits of Direct plans helps you make a choice that fits your investment goals.
Portfolio Composition and Investment Strategy
The Motilal Oswal Midcap Direct Growth Fund focuses on 27 top stocks9. By November 30, 2024, 99.39% of its assets were in equities9. This shows its dedication to finding mid-cap companies with great growth chances.
The fund spreads its investments across different sectors like cables, software, and e-commerce9. This strategy helps diversify the portfolio and reduce risks for investors. The fund’s main stocks are Polycab India, Coforge Ltd., and Kalyan Jewellers India Ltd9.. It highlights the fund manager’s skill in picking stocks and sectors.
The fund looks for mid-cap companies with strong growth, solid finances, and competitive edges109. By diversifying and focusing, it aims to give consistent returns to investors109.
“The Motilal Oswal Midcap Direct Growth Fund’s investment strategy is centered on identifying mid-cap stocks with robust fundamentals and promising growth prospects, with the goal of delivering superior long-term returns to our investors.”
Risk Assessment and Rating Analysis
When looking at the Motilal Oswal Midcap Direct Growth Future investment, it’s key to check its risk level. The fund shows more ups and downs than others, with a standard deviation of 15.87. This is a bit higher than the average of 15.3611. But, its beta of 0.82 means it’s less volatile than the market, making it less likely to swing wildly12.
Sharpe Ratio Understanding
The Sharpe ratio is another important risk metric. It shows how well the fund does compared to its risk. The Sharpe ratio for this fund is good, showing it has given better returns for the risk it takes12. This means the fund’s strategy has been smart, helping investors get good returns for the risk they take.
In summary, the risk check for the Motilal Oswal Midcap Direct Growth Future investment shows both sides. The fund has more ups and downs, but its beta and Sharpe ratio are strong. These numbers help investors understand the fund’s risk and make better choices for their money1112.
Historical Returns and Performance Metrics
The Motilal Oswal Midcap Fund – Direct Plan has shown strong performance over time1. By December 20, 2024, it had a 1-year return of 59.93%. It also had a 3-year return of 38.17% and a 5-year return of 34.63%1. The fund ranked first in its category for these periods, proving its consistent excellence1.
Since starting on February 24, 2014, the fund has grown by 26.33% annually2. It has seen an absolute return of 1156.28%1. This shows its strong long-term growth and consistent success over the years.
| Time Period | Annualized Returns | Absolute Returns |
|---|---|---|
| 1 Year | 59.93% | – |
| 3 Years | 38.17% | – |
| 5 Years | 34.63% | – |
| Since Inception (Feb 24, 2014) | 26.33% | 1156.28% |
The fund’s consistent success and high returns over different periods highlight its strong history1. These numbers show its potential to build wealth for those investing in the midcap segment of the Indian market.
Motilal Oswal Midcap Direct Growth Future: Investment Prospects
The Motilal Oswal Midcap Direct Growth fund looks promising for future investments. It has seen a 5-year return of 343.03%13. This shows it beats benchmarks and peers, thanks to its smart investment strategy.
The fund focuses on mid-cap stocks with great potential. It has a small, focused portfolio. As of December 20, 2024, its NAV was ₹125.627913. This means investors have seen big gains. Plus, its low expense ratio and small exit load make it a good long-term choice.
The fund has given impressive returns. In one year, it returned 60.13%13. Over three years, it grew by 38.21%13. Its 5-year growth rate of 34.68%13 shows it’s likely to keep doing well.
The fund’s investment strategy is strong. It focuses on mid-cap stocks14. But, with a very high risk rating13, investors need to think about their risk level and time frame.
Motilal Oswal Asset Management has a lot of experience. They manage 39 funds with a total AUM of ₹74,825.35 crores13. This means investors can trust the fund’s management to make smart moves in the mid-cap sector.
“The Motilal Oswal Midcap Direct Growth fund has consistently demonstrated its ability to identify and invest in high-potential mid-cap companies, delivering impressive returns for investors.”
SIP Investment Analysis and Returns
The Motilal Oswal Midcap Direct Growth Fund lets you start investing with just ₹500 a month4. This makes it easy to build wealth over time. It’s a smart way to invest regularly and grow your money.
Investing ₹1,000 a month in this fund for 5 years has paid off big time. It grew to ₹167,683.45, showing a 179.47% return4. For 10 years, the same investment grew to ₹488,360.75, with a 26.44% annual return4. These numbers show how well the fund can grow your money with regular investments.
Minimum Investment Requirements
Starting to invest in the Motilal Oswal Midcap Direct Growth Fund is easy. You only need ₹500 a month for SIP4. This low entry point helps more people invest and grow their wealth.
SIP Performance Track Record
The fund’s SIP performance is impressive. It has a 1-year CAGR of 62.16%, and a 5-year CAGR of 32.55%4. The average rolling returns are also high, showing the fund’s consistent success4. These numbers prove the fund’s ability to beat the market with a systematic investment plan.
Using a Systematic Investment Plan (SIP) with the Motilal Oswal Midcap Direct Growth Fund is smart. It helps you grow your wealth over time. The fund’s strong SIP performance and low investment start make it a great choice for those looking to invest in the midcap segment.
Top Holdings and Sector Allocation
The Motilal Oswal Midcap Fund – Growth – Direct Plan has a focused portfolio of 27 stocks. This is much less than the average of 72.62 stocks in the category15. As of November 30, 2024, the fund’s top stocks include Polycab India Limited (9.96%), Coforge Ltd. (9.86%), and Kalyan Jewellers India Ltd. (9.65%). Zomato Ltd. and Persistent Systems Ltd. also hold significant positions15.
This focused approach aims to maximize returns by concentrating on the fund’s best ideas. It shows the fund’s high-conviction investment strategy.
The fund’s portfolio is well-diversified across sectors. The top sectors are IT (18.13%), Consumer Discretionary (12.99%), and Financials (9.08%). Together, they make up 40.2% of the portfolio15. This diversification helps the fund tap into growth opportunities in different industries, reducing risk15.
The fund’s investments are spread across various market capitalizations. It holds large-cap (10.59%), mid-cap (12.71%), and small-cap (20.9%) stocks. The remaining 55.18% is in other investments15. This balanced approach helps the fund capture growth potential in different equity market segments.
| Top 10 Holdings | Portfolio Weight |
|---|---|
| Polycab India Limited | 9.96% |
| Coforge Ltd. | 9.86% |
| Kalyan Jewellers India Ltd. | 9.65% |
| Zomato Ltd. | 9.47% |
| Persistent Systems Ltd. | 7.74% |
| Mahindra & Mahindra Ltd. | 6.15% |
| Jio Financial Services Ltd. | 6.09% |
| Trent Limited | 5.19% |
| Bajaj Auto Ltd. | 4.44% |
| Voltas Limited | 3.62% |
In the one-month period ending November 30, 2024, the fund made some changes. It added Supreme Industries Ltd. (0.46%), Trent Limited (5.19%), KEI Industries Ltd. (1.32%), and Shaily Engineering Plastics Ltd. (0.13%). It removed GE T&D India Ltd., Tata Elxsi Ltd., and Aurobindo Pharma Ltd. from its portfolio15. These moves show the fund manager’s active approach to maintaining a high-quality, diversified portfolio.
Tax Implications and Exit Load Structure
Investors in the Motilal Oswal Midcap Fund need to know about taxes and exit loads16. For more than a year, long-term capital gains tax is 12.5% on gains over ₹1.25 lakh16. Short-term gains, for less than a year, are taxed at 20%16. There’s also a 1% Exit Load if redeemed in the first year16.
Understanding these tax rules and exit loads is key for investors16. It helps them plan better and make smart choices to grow their money16.
| Tax Slab | Holding Period | Tax Rate |
|---|---|---|
| Long-term Capital Gains | More than 1 year | 12.5% on gains exceeding ₹1.25 lakh |
| Short-term Capital Gains | Less than 1 year | 20% |
The Motilal Oswal Mutual Fund has changed exit loads for some funds17. The Motilal Oswal Nifty Midcap 150 Index Fund now has a 15-day exit load17. This change is from June 18, 2024, for new investments17.
Investors should think carefully about these changes when looking at the Motilal Oswal Midcap Fund16. Knowing how these rules affect their money helps them make better choices16.
“Investing in a tax-efficient manner can significantly enhance the long-term growth of your portfolio.”
Fund Size and Asset Management
The Motilal Oswal Midcap Direct Growth fund has a big fund size of ₹22,897.62 Cr. This is 5.87% of the total investment in its category1. It has enough money for detailed research and efficient management.
The fund is supported by Motilal Oswal Asset Management Company Ltd. (MOAMC). MOAMC is a well-known fund house in India18. The big fund size and MOAMC’s support make the fund stable and well-managed.
The fund’s expense ratio is 0.57%, which is lower than the average of 0.73%18. This shows the management’s focus on giving investors good returns10. The fund’s NAV has gone up, reaching ₹125.63 as of December 20, 202410.
The fund mostly invests in domestic equities, with 99.39% of its assets in this class1. It has a good mix of sectors, with the biggest share in Computers – software & consulting1. The top 10 stocks in the fund include Polycab India Limited, Coforge Ltd., and Kalyan Jewellers India Ltd10.
The fund’s risk metrics show it has higher volatility than some peers1. But, its strong performance and good management have led to great returns. The Motilal Oswal Midcap Direct Growth fund is a good choice for those looking at the midcap segment of the Indian equity market.
Comparative Analysis with Peer Funds
The Motilal Oswal Midcap Direct Growth fund is a top performer in the mid-cap fund category. It has been ranked 1st in its category for various time frames. This shows its strong peer comparison and competitive edge19.
The fund’s performance is impressive. It has 1-year returns of 60.13% compared to the category average of 31.7%. Its 5-year returns are 34.63% versus the category average of 26.4%19. This makes it a great choice for investors looking at the mid-cap segment.
Benchmark Comparison
The fund’s track record is unmatched. Over 10 years, it has a CAGR of 23.35%, beating the Nifty Midcap 150 index’s return of 21.45%19. This shows the fund’s strong investment strategy and the skill of its management team.
| Performance Metric | Motilal Oswal Midcap Fund | Nifty Midcap 150 Index |
|---|---|---|
| 10-Year CAGR | 23.35% | 21.45% |
| 10-Year SIP Returns | 23.12% | 21.61% |
| Average 7-Year Rolling Return (2014-2024) | 16.61% | 17.40% |
The fund’s performance across different time frames and metrics is outstanding. It consistently outperforms its peers and the benchmark. This gives investors a clear competitive advantage in the mid-cap fund category19.
Category Rankings
The Motilal Oswal Midcap Direct Growth fund is a top choice in the mid-cap fund segment. It has maintained its 1st rank in the category for various time periods. This shows its consistent and superior performance19.
“The Motilal Oswal Midcap Direct Growth fund has consistently ranked 1st in its category, showcasing its exceptional peer comparison and category performance.”
This consistent outperformance and category-leading position make the Motilal Oswal Midcap Direct Growth fund a compelling option. It offers strong returns and a competitive edge for investors in the mid-cap segment19.
Investment Horizon and Suitability
The Motilal Oswal Midcap Direct Growth fund is perfect for investors with a 3-4 year time frame20. It’s a high-risk, high-reward fund for those okay with moderate losses for big growth20. It’s ideal for investors wanting to diversify and tap into emerging businesses’ growth.
This fund’s investment goals and risk tolerance are great for investors aiming for long-term gains20. It has shown strong returns, with a 37.09% CAGR over 3 years and 23.03% in the long term20. Compared to peers, it outperforms, showing its strong long-term investing potential20.
For investors wanting to diversify and grow with mid-cap companies, this fund is a good pick20. It focuses on mid-cap stocks, which could offer big gains20. This matches the fund’s strategy and aims for long-term growth.
In summary, the Motilal Oswal Midcap Direct Growth fund is for investors with a long-term view and a high risk tolerance20. Its steady performance and diverse portfolio make it a solid choice for those aiming to boost their long-term returns.
Risk Factors and Market Considerations
Investing in the Motilal Oswal Midcap Direct Growth Fund comes with risks. Mid-cap stocks are more volatile and can change a lot in the short term21. The fund’s focus on just 27 stocks means it’s more risky because of how one stock can affect the whole fund.
Market conditions, like the economy and how people feel about the market, also play a big role21. Even though the fund has done well in the past, with a 5-year return of 33.84% in the Equity Mid Cap category21, past results don’t promise future success.
Before investing, think about how this fund fits into your overall portfolio and risk level. The Motilal Oswal Midcap Direct Growth Fund is a high-risk, high-reward choice21. It’s key to understand the risks of market volatility, economic factors, and mid-cap investments to make a smart choice.
“Diversification is the only free lunch in investing.” – Harry Markowitz
The Motilal Oswal Midcap Direct Growth Fund could offer good returns, but remember the importance of diversifying your portfolio22. By spreading your investments across different types and strategies, you can build a strong and balanced portfolio.
Conclusion
The Motilal Oswal Midcap Direct Growth fund is a strong choice for those looking into mid-cap stocks. It has shown top returns in its category, making it a great value for investors10. With a current NAV of Rs 125.63 and returns up to 64.44% in a year, it’s very appealing10.
But, it’s important to think carefully before investing. The fund’s high risk level and volatility mean it’s not for everyone10. Getting advice from a financial expert is a good idea to match your goals and risk level.
In summary, the Motilal Oswal Midcap Direct Growth fund is a good pick for mid-cap investors. But, it’s key to make smart choices and manage risks well. By understanding the fund’s strengths and risks, investors can make a choice that fits their long-term goals.
FAQ
What is the classification and category of the Motilal Oswal Midcap Fund?
The Motilal Oswal Midcap Fund is an Equity Mid Cap fund with a very high-risk profile. It invests 99.39% in domestic equities. This includes 10.59% in Large Cap, 12.71% in Mid Cap, and 20.9% in Small Cap stocks.
What is the investment objective and strategy of the Motilal Oswal Midcap Fund?
The fund aims to provide high returns for investors willing to invest for at least 3-4 years. It focuses on a diversified portfolio of 27 stocks. This is significantly less than the category average of 72.62 stocks.
Who is the fund management team behind the Motilal Oswal Midcap Fund?
The Motilal Oswal Midcap Fund is managed by Motilal Oswal Asset Management Company Ltd. (MOAMC). Its registered office is in Mumbai.
What is the current NAV and fund size of the Motilal Oswal Midcap Fund?
As of December 20, 2024, the fund’s NAV is ₹125.6279. The fund size is ₹22,897.62 Cr.
How has the Motilal Oswal Midcap Fund performed compared to its benchmark and peers?
The fund has shown exceptional performance. It has 1-year returns of 59.93%, 3-year returns of 38.17%, and 5-year returns of 34.63%. It consistently outperforms its benchmark, the Nifty Midcap 150 TRI, across various time frames. It ranks 1st in its category for 1-year, 3-year, and 5-year returns.
What are the differences between the Direct and Regular plans of the Motilal Oswal Midcap Fund?
The Direct plan has a lower expense ratio of 0.57% compared to the category average of 0.73%. This leads to higher returns for investors in the long term.
How is the portfolio of the Motilal Oswal Midcap Fund constructed?
The fund’s portfolio consists of 27 stocks. It focuses on a concentrated investment approach. As of November 30, 2024, the equity holding stands at 99.39%. It is diversified across sectors like cables, software consulting, jewellery, e-commerce, and automotive industries.
What are the key risk metrics associated with the Motilal Oswal Midcap Fund?
The fund has a high Standard Deviation of 15.87, indicating higher volatility. However, it has a low Beta of 0.82, suggesting lower volatility relative to the market. The Sharpe Ratio is favorable, indicating that the fund has been able to generate better returns for the risk taken.
What are the long-term returns and performance track record of the Motilal Oswal Midcap Fund?
The fund has delivered an annualized return of 26.33% since inception (February 24, 2014). It has an absolute return of 1156.28%. The 5-year annualized return stands at 34.63%. The fund has consistently ranked 1st in its category across various time frames.
What are the SIP investment options and returns of the Motilal Oswal Midcap Fund?
The fund offers a Systematic Investment Plan (SIP) option with a minimum investment of ₹500. A ₹1000 monthly investment over 5 years (as of December 20, 2024) has grown to ₹167,683.45. This delivers an absolute return of 179.47% and an annualized return of 42.47%.
What are the top holdings and sector allocation of the Motilal Oswal Midcap Fund?
As of November 30, 2024, the top holdings include Polycab India Limited (9.96%), Coforge Ltd. (9.86%), Kalyan Jewellers India Ltd. (9.65%), Zomato Ltd. (9.47%), and Persistent Systems Ltd. (7.74%). The portfolio shows a balanced mix of sectors including cables, software consulting, jewellery, e-commerce, and automotive industries.
What are the tax implications and exit load structure for the Motilal Oswal Midcap Fund?
For investments held for more than one year, long-term capital gains tax of 12.5% applies on gains exceeding ₹1.25 lakh. Short-term capital gains (for holdings less than one year) are taxed at 20%. The exit load structure and any additional cess or surcharge are not specified in the provided data.
What is the current fund size and asset management of the Motilal Oswal Midcap Fund?
The Motilal Oswal Midcap Fund has a substantial fund size of ₹22,897.62 Cr. It represents 5.87% of the total investment in its category. It is managed by Motilal Oswal Asset Management Company Ltd. (MOAMC), a reputable fund house with a strong presence in the Indian financial services sector.
How does the Motilal Oswal Midcap Fund compare to its peers in the category?
The Motilal Oswal Midcap Fund consistently ranks 1st in its category across various time frames. It outperforms the category average significantly, with 1-year returns of 60.13% compared to the category average of 31.7%, and 5-year returns of 34.63% versus the category average of 26.4%. The fund also consistently outperforms its benchmark, the Nifty Midcap 150 TRI.
Who is the Motilal Oswal Midcap Fund suitable for, and what are the investment considerations?
The Motilal Oswal Midcap Fund is suitable for investors with a long-term investment horizon of at least 3-4 years. It seeks high returns and is willing to accept moderate risks. Investors should be aware of the inherent volatility and potential for significant short-term fluctuations associated with mid-cap investments. The concentrated portfolio may also lead to higher stock-specific risks.