Motilal Oswal MOSt Focused Multicap 35 Fund is a late entrant in the mutual fund industry with a multi-cap investment approach. It has been recently renamed to Motilal Oswal Multicap 35 Fund. It is one of the highly chosen multi-cap funds and has rapidly increasing assets under management of Rs 14,052 crore and counting. The experts at MySIPonline have done comprehensive research to check the suitability of Motilal Oswal Multicap 35 Fund with the investors.
Does it Suit Your Investment Style?
The investments for Motilal Oswal Focused 35 Fund are not limited to any sector of the size of the stocks. However, the fund manager keeps less number of stocks in the portfolio. QGLP approach is used to select the stocks which include the study of the share on the basis of quality, growth, longevity, and price. Large corpus is invested in only 27 stocks which excel in every quality. Small caps are generally avoided, and more allocation is done in large-cap stocks.
Cyclical sectors are mostly preferred as large allocations are done in equity instruments of financial, automobile, and technology industry. HDFC, HDFC Bank, Maruti Suzuki, Infosys, IndusInd Bank are the top holders of the fund.
Impressive Performance
Motilal Oswal Focused 35 Fund has provided substantial returns within a short span and has never provided lesser returns than the benchmark. With a remarkable 43% return in 2017, it achieved a five-star rating within a few years after inception. The recent market has not been supportive of the fund, and the NAV has been fluctuating in 2018. As it has never faced a fierce bear market, it is difficult to suggest the suitability on the basis of the past performance.
Trailing Returns (%) as on Sep 16, 2018 | 1-M | 3-M | 6-M | 1-Y | 3-Y |
Fund | -0.8 | 0.65 | 1.97 | 1.54 | 15.9 |
NIFTY 500 TRI | 0.78 | 5.18 | 7.97 | 11.57 | 15.56 |
Category | 0.13 | 3.23 | 5.02 | 7.01 | 13.42 |
Rank within Category | 37 | 44 | 39 | 41 | 7 |
Number of Funds in category | 50 | 49 | 47 | 45 | 43 |
Can You Bear the Risk?
Compared to the category average and benchmark, Motilal Oswal Focused 35 Fund possess a low risk factor as the standard deviation and beta are less than the category’s average.
Risk Measures (%) | Mean | Std Dev | Sharpe | Sortino | Beta | Alpha |
Fund | 15.85 | 13.3 | 0.71 | 1.12 | 0.85 | 1.52 |
NIFTY 500 TRI | 15.73 | 13.76 | 0.68 | 1.08 | - | - |
Category | 14.06 | 14.33 | 0.54 | 0.79 | 0.97 | -1.42 |
Rank within Category | 10 | 32 | 8 | 3 | 38 | 7 |
Number of Funds in category | 43 | 43 | 43 | 43 | 43 | 43 |
The scheme looks in a much better position when the risk parameters are compared as on the top of offering lesser risk, it also generates heavy returns and has a profitable risk to reward ratio.
Conclusion
Motilal Oswal Focused 35 Fund has been a top-notch choice in the multi-cap category which has provided outstanding returns in the past and can continue to outperform the peers in future. The investors who seek long-term capital appreciation from a concentrated portfolio of the diversified sectors and the market caps. It has a low-risk portfolio and offers excellent returns compared to the risk involved. Hence, it is suitable for investors who can take a moderate risk from quality stocks. Connect with the experts at MySIPonline to take better assistance regarding investment in Motilal Oswal Focused 35 Fund (G).
