Motilal Oswal Focused Multicap 35 Fund is an open-ended mutual fund investment scheme which looks to achieve long-term capital appreciation by primarily investing in a maximum of 35, equity and equity related instruments, across various sectors and market capitalization levels. This fund is ideal for investors looking to invest keeping in mind a medium to long-term horizon and for investors who like to invest with a long-term wealth creation view. Launched on 17th April 2014, this fund remains one of the best investment options today and holds the distinction of being ranked third in the ‘Diversified Equity’ category by CRISIL for the quarter ended December 2017, a rank which remains unchanged from the previous quarter. The minimum initial investment amount for investing in this fund scheme is Rs. 5,000 while investors looking to go down the SIP Investment route can get started with a minimum of Rs. 1,000.
The mutual fund investment is managed by veteran stock picker Gautam Sinha Roy, with co-fund manager Taher Badshah joining him from May 2015.Mr. Gautam Sinha Roy has over 13 years of rich and varied experience and has managed (or is currently managing) funds including Motilal Oswal MOSt Focused Long Term Fund and Motilal Oswal MOSt Focused Dynamic Equity Fund. Mr. Siddharth Bothra, on the other hand, is equally prolific and has a rich experience of more than 15 years in the field of research and investments. Owing to the great team, the fund has seen its AUM increase rapidly, and in a short time frame, and is currently close to the Rs 10,000 crore mark.
The team employs a bottom-up approach to stock-picking and less of sector-based stock picking. It is primarily focused on investing in a few select quality stocks which are available at reasonable price. Further, the stock allocations of this fund are graded as a minimum of 65 per cent in equity and equity related instruments along with a maximum of 35 per cent in Debt/money market instruments. Additionally, the fund management team may also look to invest in foreign securities up to 10 per cent of total net assets which entails that the fund has just about 20-22 local stocks. Moreover, the team makes sure that the fund remains almost fully invested in equity with minimal cash exposure (less than 1 per cent of the corpus).As of 8th February 2018, the top 5 stocks that make up the fund portfolio include Maruti Suzuki India Limited, Housing Development Finance Corporation Limited, HDFC Bank Limited, HPCL, and BPCL which have helped it deliver high returns. The fund management team also does not shy away to exit a stock if the expected returns aren’t as expected or when valuations turn expensive.
The fund has consistently managed to outperform its benchmark, Nifty 500, since its inception. From being overweight on software stocks, the management team has completely phased out of this sector considering the numerous structural challenges facing it. Similarly, owing to weak financial performance, its exposure to the airline sector has also been reduced. Currently, the team has also shown a preference towards banking and financial stocks while also keeping an eye on pharma stocks as well. With a corroborated investment methodology along with a proficient and experienced team, this fund ranks amongst the best mutual funds in India as it enables efficient utilization of idle cash.
Individuals who like to invest with a long-term wealth creation view while wanting to have one of the best performing mutual funds as part of their portfolio can choose to invest in this scheme. Get in touch with our financial advisors for tailor-made investment plans.