June 19, 2022
mayank
Motilal Oswal Midcap 30 Fund Guidance
NAV Growth : Rs 46.7288
NAV IDCW : Rs 25.1192
Suitable for Which Investors ?
“When you invest for seven years or more, you can expect gains that comfortably beat the inflation rate as well as returns from fixed income options.
This is a fund that invests in medium-sized companies. Compared to those that invest in larger companies, such funds tend to fall more when stock prices fall. So while you can expect higher returns in the long term, there will be more severe ups and downs along the way.
Like for all equity funds, you must invest only through the SIP route.
Fund’s Investment Strategy :
The scheme seeks to achieve long term capital appreciation by investing in a maximum of 30 quality mid cap companies having long-term competitive advantages and potential for growth.
Fund Manager :
— Niket Shah
Education : Mr. Shah is a MBA in Finance
Experience : Prior to joining Motilal Oswal AMC, he was associated with Motilal Oswal Securities Limited as Head of Midcaps Research from February 2013 to March 2018, Edelweiss Securities Ltd. as Research Analyst – Midcaps from March 2010 to January 2013 and Religare Capital Markets Ltd. as Associate Research Analyst – Midcaps from June 2008 to March 2010.
Investment Details
| Min. Investment (Rs) | 500 |
| Min. Addl Investment (Rs) | 500 |
| Min. SIP Investment (Rs) | 500 |
| Min. No of Cheques | 12 |
| Min. Withdrawal (Rs) | 500 |
| Min. Balance (Rs) | — |
| Lock-in Period | Not Applicable |
| Exit Load | 1% for redemption within 15 days |
Basic Details
| Fund House: | Motilal Oswal Mutual Fund |
| Launch Date: | 24-Feb-14 |
| Return Since Launch: | 20.44% |
| Benchmark: | NIFTY Midcap 150 TRI |
| Riskometer: | Very High |
| Type: | Open-ended |
| Assets: | Rs 2,624 Cr |
| (As on 31-May-2022) | |
| Expense: | 0.94% |
| (As on 30-Apr-2022) | |
| Risk Grade: | Average |
| Return Grade: | Average |
| Turnover: | 70.00% |
Trailing Returns (%)
| YTD | 1-Day | 1-W | 1-M | 3-M | 6-M | 1-Y | 3-Y | 5-Y | 7-Y | 10-Y | |
| Motilal Oswal Midcap 30 Direct-G | -7.16 | -0.86 | -4.41 | -4.09 | 3.35 | -6 | 19.74 | 20.35 | 12.05 | 13.14 | — |
| S&P BSE 150 MidCap TRI | -9.13 | -0.34 | -2.72 | -2.79 | 1.73 | -10.08 | 2.4 | 20.16 | 12.57 | 14.92 | — |
| Equity: Mid Cap | -9.11 | -0.33 | -2.42 | -2.57 | 1.15 | -9.08 | 5.27 | 19.1 | 12.07 | 13.9 | — |
| Rank within category | 7 | 33 | 33 | 32 | 3 | 2 | 1 | 7 | 10 | 14 | — |
| Number of funds in category | 30 | 33 | 33 | 33 | 30 | 29 | 28 | 22 | 20 | 19 | 0 |
Peer Comparison
| Fund name | Rating | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return | Expense Ratio | Assets (Cr) |
| Motilal Oswal Midcap 30 Fund | 3 star | Feb-14 | 19.74 | 20.35 | 12.05 | 0.94% | 2,624 |
| Kotak Emerging Equity Fund | 4 star | Jan-13 | 6.95 | 21.25 | 14.3 | 0.48% | 19,303 |
| Axis Midcap Fund | 5 star | Jan-13 | 4.15 | 20.02 | 17.49 | 0.46% | 17,165 |
| Nippon India Growth Fund | 4 star | Jan-13 | 9.74 | 19.89 | 14.09 | 1.21% | 11,629 |
| PGIM India Midcap Opportunities Fund | 5 star | Dec-13 | 11.71 | 31.64 | 17.57 | 0.46% | 5,012 |
Portfolio Analysis
| Number of Stocks | 26 |
| Top 10 Stocks (%) | 68.1 |
| Top 5 Stocks (%) | 42.65 |
| Top 3 Sectors (%) | 43.99 |
| Portfolio P/B Ratio | 6.9 |
| Portfolio P/E Ratio | 49.55 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 25,869 | 31,474 |
| Giant (%) | 3.96 | 5.36 |
| Large (%) | 4.69 | 14.8 |
| Mid (%) | 80.37 | 75.91 |
| Small (%) | 10.99 | 5.36 |
| Tiny (%) | — | — |
Chanakya’s Mutual Fund Guidance :
This is a fund that invests in medium-sized companies. Compared to those that invest in larger companies, such Midcap funds tend to fall more when stock prices fall. So while you can expect higher returns in the long term, there will be more severe ups and downs and yet during current correction phase of the Stockmarket, this Scheme has provided return of 14.61% during last one year ( as compared to negative return of 2.21% in the benchmark). Most of the other funds in this category has given 1 year Return in range of (-)1.87 to 5.27%. This suggest correct selection of the portfolio
Return since Inception : As you know, the scheme was launched in February 2014 and since inception, the fund has given return of 19.61% which very satisfactory
Its Asset Allocation is another positive aspect of this scheme.The Scheme has invested 80% of the asset to Midcap stocks and 10% of the Asset to Small Cap fund. So in true sence ,the fund is Midcap focused fund.It has invested 68% of the Assets in just 10 stocks which suggest confident-bet by the Fund manager.
Fund Manager Mr. Niket Shah is attached to this scheme since 1 March 2018 which indicate consistency of the approach and an important positive aspect.
The Negative aspects of this Scheme
1) Portfolio PE Ratio of 49.55 which some what on higher side and leaves less room for appreciation.
2) 13.73% of the funds allocated to Consumer Discretionary stocks. I believe such stocks are feared to perform badly during this period of high inflation and declining purchasing power of the consumers.
Alternatives to This Scheme :
Looking to the impressive 1-year return, we recommend Motilal Oswal Midcap 30 Fund, However as an alternative, you can go for PGIM India Midcap opportunities fund , which has earned return of 30.41 % p.a. during the period of last 3 years.
Do not invest in this, or any other mid-cap fund, if you need to redeem your investment in less than seven years.
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