We’re starting our review of the Motilal Oswal Midcap Fund Direct Growth. It has a current NAV of ₹102.54 as of Mar 07, 20251. This fund is a midcap, making it a great choice for those looking to invest. The expense ratio is 0.65%1, and it has a current AUM of ₹23,704 Crores1.
Table of Contents
The Motilal Oswal Midcap Fund Direct Growth has shown impressive growth. It has a 1-Year CAGR of 16.61%1 and a 3-Year CAGR of 27.05%1. This makes it a strong contender for those seeking growth.
Key Takeaways
- The Motilal Oswal Midcap Fund Direct Growth has a current NAV of ₹102.54 as of Mar 07, 20251.
- The fund’s expense ratio is 0.65%1, and its current AUM is ₹23,704 Crores1.
- The fund has delivered a 1-Year CAGR of 16.61%1 and a 3-Year CAGR of 27.05%1.
- The top three stocks in the portfolio are Coforge, Persistent Systems, and Kalyan Jewell, accounting for 26% of the portfolio1.
- The fund’s investment analysis indicates a significant allocation to the IT sector, with a current PE ratio of 58.991 and a current PB ratio of 11.981.
- The minimum SIP amount is ₹500.00, and the minimum lumpsum investment is ₹500.001.
Understanding Motilal Oswal Midcap Fund Direct Growth
We aim to give a full view of the Motilal Oswal Midcap Fund Direct Growth. We’ll look at its fund overview, investment philosophy, and key features. The fund aims to grow your money over time by picking top mid-cap companies2. It’s all about tapping into the growth of mid-cap companies, which can grow fast.
The investment philosophy of the Motilal Oswal Midcap Fund Direct Growth is about finding companies with great growth chances. It looks for companies with a strong edge and good management3. The fund spreads its investments across different sectors, focusing on companies that have shown steady returns. It’s known for its wide range of mid-cap investments, strict investment strategy, and long-term growth focus.
Here are some of the key features of the Motilal Oswal Midcap Fund Direct Growth:
- Investment in quality mid-cap companies
- Long-term capital appreciation
- Diversified portfolio across various sectors
- Disciplined investment approach
- Focus on companies with strong growth
The fund’s performance is checked often to make sure it meets its goals and beliefs2. By knowing the fund overview, investment philosophy, and key features of the Motilal Oswal Midcap Fund Direct Growth, investors can make smart choices. This helps them reach their financial goals over time.
Fund Manager’s Investment Strategy
The fund manager is key to the Motilal Oswal Midcap Fund’s success. Experienced managers like Ashish Agrawal, Ajay Khandelwal, Niket Shah, and Rakesh Shetty lead the fund4. They pick midcap companies with great growth chances. The fund has seen a 23.35% CAGR over 10 years4.
Their investment strategy involves deep analysis of companies’ finances, management, and trends3. They look at valuation, growth, and competitive edge in their decisions3. This has helped the fund beat benchmarks and averages, with a 1-year return of 58.16% and a 3-year return of 38.27%4.
The fund’s portfolio spans sectors like IT, finance, and telecom, focusing on midcap stocks3. The strategy aims for a balance between risk and return, focusing on long-term growth4. With a solid track record, the Motilal Oswal Midcap Fund is a great choice for those interested in midcap growth4.
Historical Performance Analysis
We look at the fund’s past performance to see how it has done over time. The fund has seen returns of 17.56%, 31.74%, 28.67%, and 23.48% over 1 year, 3 years, 5 years, and its entire life, respectively2. This shows it has done well, often beating the average in its category.
When we compare the fund’s returns to its benchmark, we see it has done better. It has outperformed its benchmark over 1 year, 3 years, and 5 years2. This means its investment strategy has been successful in making money.
The fund’s risk-adjusted returns are also key. The Sharpe Ratio, which measures how much return you get for the risk you take, is 1.122. This means the fund has made more money for the risk it took, compared to others in its category.
Here’s a quick summary of the fund’s past performance:
This analysis of the fund’s past performance gives us important insights. It helps us understand its returns, how it compares to benchmarks, and its risk-adjusted returns. This information is key for investors to make smart choices.
Portfolio Composition and Sector Allocation
The Motilal Oswal Midcap Fund Direct Growth focuses on sector allocation to meet its goals2. It holds top companies like Kalyan Jewellers India, Polycab India, and Coforge2. These companies lead in their sectors.
The fund’s sectors include consumer discretionary, capital goods, and technology3. This mix aims to balance growth and stability for long-term success3.
The fund manager picks sectors with growth chances and allocates assets wisely3. The portfolio is checked and adjusted often to match the fund’s goals.
The fund’s mix of sectors aims for a balance of growth and stability3. It focuses on long-term success.
Risk Management Framework
We have a plan to reduce risks and make sure our investments meet our goals. We think good risk management is key to success. Our framework includes market risk assessment to check how market changes might affect our investments5. We also look at volatility measures to see how risky our investments are and adjust our plans3.
Our framework is based on deep market and economic analysis, plus the details of our investments. We mix qualitative and quantitative methods to understand risk, like stress testing and scenario analysis2. This helps us spot risks early and act to reduce them. By managing risk well, we aim to cut losses and increase gains, which is vital for our investment goals.
Some important parts of our risk management plan are:
- Regular portfolio rebalancing to keep our investments on track
- Keeping a close eye on market conditions and economic trends
- Using hedging strategies to reduce possible losses
- Setting stop-loss orders to cap losses
By sticking to this plan, we manage our investments to reduce risk and increase returns. Our risk management is flexible and can quickly adapt to market changes5. We see our risk management as a major reason for our success. We’re always looking to improve it to keep it effective3.
Comparative Analysis with Peer Funds
We looked at the Motilal Oswal Midcap Fund Direct Growth and compared it with other funds. We focused on how well it does, its costs, and the balance between risk and return6. The fund’s performance is compared to other midcap funds, giving investors useful information1.
The fund has a lower cost of 1.58% compared to the average of 1.84% in its category6. This makes it a good choice for those who want to save money.
The fund’s 1-year return of 16.33% and 2-year return of 76.58% are high compared to its peers6. It also has a good balance between risk and return, with a standard deviation of 16.52 and a Sharpe ratio of 1.196. Compared to funds like HDFC Mid-Cap Opportunities Direct Plan-Growth and Invesco India Mid Cap Fund Direct-Growth, the Motilal Oswal Midcap Fund Direct Growth has a higher 1-year return of 17.56%2.
Some key highlights of the fund’s performance include:
The fund’s performance and low costs make it a great choice for those looking to invest in midcaps1.
Investment Process and Methodology
The investment process starts with a deep look at possible investments. We check things like how well they’re doing financially, the trends in their industry, and the quality of their management7. Our way of choosing investments focuses on mid-cap companies that could grow a lot. We mix numbers and people skills to pick the best stocks8.
We look for companies with solid finances, a strong edge in the market, and great management. These things help them do well over time7. When building our portfolio, we spread out across different areas. This helps us avoid big risks and aim for better returns8.
Some important parts of our investment process are:
- Stock selection: We blend basic and technical analysis to find good investments7.
- Portfolio rebalancing: We check and adjust our portfolio often. This keeps it in line with our goals8.
- Risk management: We use different strategies to cut down on losses and keep our investors’ money safe7.
Our investment process and method aim to invest wisely. We want to grow our investors’ money over the long run8.
Key Success Factors
The Motilal Oswal Midcap Fund Direct Growth’s success comes from its smart stock selection and risk management9. It picks stocks with great growth chances and spreads out investments to reduce risk4. Its market timing strategy helps it grab market chances and handle ups and downs10.
The fund often beats its benchmark and peers, with a 3-year CAGR of 37.09%10. It has a strong team that manages the portfolio well, with a turnover ratio of 131%4. Its direct plan has a low expense ratio of 0.57%10.
The fund looks for high-growth mid-cap stocks, with 66.76% of its portfolio in mid-caps10. It chooses stocks based on financial health, management quality, and industry trends9. It also uses market timing to make the most of market chances and cut down on risk4.
Fund Expenses and Tax Implications
When you invest in a mutual fund, it’s key to think about fund expenses and tax implications. The expense ratio of the fund is very important. It impacts how much you’ll earn from your investment. For the Motilal Oswal Midcap Fund Direct Growth, the expense ratio is 0.68% for the direct plan11.
This means that for every ₹100 you invest, ₹0.68 goes to fund expenses.
Investors should also know about the tax implications of their investments. The tax on this fund includes a 20% short-term capital gains tax if you sell within a year. If you sell after a year, the long-term capital gains tax is 12.5%12. It’s important to understand these taxes to make smart investment choices.
Here are some key points to consider regarding fund expenses and tax implications:
Investor Suitability Assessment
When looking at the Motilal Oswal Midcap Fund Direct Growth, it’s key to think about risk profile and investment horizon. This fund is best for those who can handle high risks and are in it for the long haul13. It focuses on mid-cap stocks, which can be shaky short-term but promise big gains over time.
Matching the fund’s goals with your financial aims is vital for investor suitability. For example, if you want steady, consistent returns, this fund might not be for you14. But, if you’re looking to grow your money over several years and can handle some risk, it could be a good fit.
Don’t overlook the investment horizon when checking if the fund fits you. If you’re planning to cash out soon, mid-cap stocks might be too risky15. But, if you’re in it for the long run, you can weather market ups and downs and might see the fund grow.
Thinking about your risk profile and investment horizon will help you decide if the Motilal Oswal Midcap Fund Direct Growth is right for you13. If you’re okay with taking on more risk and have years to invest, this fund could be a good choice. But, if you’re more cautious or need your money sooner, you might want to look at other options that match your goals and comfort level better.
Future Growth Prospects and Opportunities
We think the Motilal Oswal Midcap Fund Direct Growth has big future growth chances. It invests in top midcap companies16. The fund mixes midcap, large-cap, and small-cap stocks for a balanced investment17.
By April 2024, the fund’s assets grew by 143% in a year. This shows it’s on a strong growth path16.
The fund has a solid track record, with a 10-year CAGR of 23.35%16. It also has a good mix of IT, finance, and telecom sectors17. We see it doing well in the future, thanks to its smart investment plan and the growth of its companies.
Some important stats show the fund’s growth chances include:
- Starting a SIP of Rs 10,000 a month 10 years ago would have grown to over Rs 40 lakh16.
- The fund’s 10-year CAGR is 23.35%, beating the benchmark’s 21.45%16.
- Its decade SIP return has an XIRR of 23.12%, better than the Nifty Midcap 150’s 21.61%16.
In summary, the Motilal Oswal Midcap Fund Direct Growth looks promising. It offers great future growth and opportunities for those interested in midcap investments17.
Conclusion
The Motilal Oswal Midcap Fund Direct Growth is a great choice for those looking to grow their money over time. It has shown strong performance, with a Sharpe Ratio of 1.19 and a Jensen’s Alpha of 7.8318. This means it offers better returns compared to others in its category18.
The fund also manages risk well, with a lower beta of 0.85 compared to the average of 0.8918. It has a diverse portfolio across different sectors. This makes it a solid choice for steady growth19.
In the past year, the fund has given a 20% return, growing from Rs 100 to Rs 12018. This shows its ability to provide long-term value to investors18.
We think the Motilal Oswal Midcap Fund Direct Growth is a good option for those looking to invest in midcaps. It has a clear investment strategy, a skilled team, and strong risk management19.
FAQ
What are the investment objectives of the Motilal Oswal Midcap Fund Direct Growth?
The Motilal Oswal Midcap Fund Direct Growth aims to grow your money over time. It does this by investing in midcap companies.
What is the fund’s investment philosophy?
The fund looks for top midcap companies with strong growth and lasting business models. It wants to find companies that can keep growing.
What are the key features and benefits of the Motilal Oswal Midcap Fund Direct Growth?
The fund focuses on long-term growth. It has a careful investment process and a mix of midcap companies. This helps it grow your money over time.
How does the fund manager approach the investment strategy?
The fund manager uses a detailed process to pick midcap companies. They look for companies with growth and strong competitive edges.
How has the Motilal Oswal Midcap Fund Direct Growth performed historically?
The fund has given good returns over time. It often beats the average and its benchmark. Its returns are also good when you consider the risk.
What is the portfolio composition and sector allocation of the Motilal Oswal Midcap Fund Direct Growth?
The fund’s portfolio is spread across different sectors. It focuses on companies with growth and competitive advantages.
How does the Motilal Oswal Midcap Fund Direct Growth manage risk?
The fund has a strong risk management plan. It looks at market risk, measures volatility, and uses strategies to protect against losses.
How does the Motilal Oswal Midcap Fund Direct Growth compare to its peers?
The fund has good performance, low costs, and a good risk-return balance. It’s a strong choice for investors.
What is the investment process and methodology used by the fund managers?
The fund managers use a detailed process to pick investments. They analyze growth, competitive edge, and value.
What are the key success factors of the Motilal Oswal Midcap Fund Direct Growth?
The fund’s success comes from careful stock picking, timing, and risk management. These help it perform well.
What are the expenses and tax implications associated with the Motilal Oswal Midcap Fund Direct Growth?
The fund’s costs are low. Taxes depend on your situation and how long you invest.
Who is the Motilal Oswal Midcap Fund Direct Growth suitable for?
It’s good for those with a moderate risk tolerance, a long-term view, and want to grow their money in midcaps.
What are the future growth prospects and opportunities for the Motilal Oswal Midcap Fund Direct Growth?
The fund’s midcap companies and the segment’s growth offer promising chances for long-term investors seeking growth.