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Motilal AMC Business Opportunities

Scheme Rating

IME Scheme Rating

The Scheme does not meet our selection criteria at this time

Wait for performance to improve: While Motilal has all the required credentials for a strong PMS strategy, continued underperformance in recent years with limited signs of strategies to turn around the same, lead to us not recommending Motilal BOP at this time. We would wait for clearer signs of performance to improve before recommending the same.

IME Strategy Rating

Strong Investment Process: Focused strategy with concentrated exposure to a few specific themes. We appreciate the level of concentration that Motilal runs on the portfolio (well below 20 stocks, major exposure in 2 sectors of financiers and consumption). There is a clearly defined investment philosophy of long-term investing in high-quality companies that meet Motilal’s QGLP Philosophy (Quality, Growth, Longevity, Price).

PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).

IME View on Motilal AMC Business Opportunities

Type: Large Cap | GARP | AUM (1469.2 cr) | Inc Date (18 Dec 2017)

Investment Philosophy

Motilal’s Business Opportunity fund is a focussed multi-cap strategy, that aims to limit the number of stocks to between 20-25.

Motilal has a very clearly defined investment philosophy of long-term investing in high quality companies that meet their QGLP investment criteria. They have followed this strategy consistently for over 2 decades, with limited style drift.

The QGLP Framework:

  • Quality of the Business and Quality of the Management: Stable businesses preferable consumer facing, with huge business opportunity and sustainable competitive advantages. Businesses run by competent management.
  • Growth in Earnings: Driven by volume growth, price growth, mix change, operating and financial leverage.
  • Longevity (of Quality and Growth): Dictated by long-term relevance of the business, extending competitive advantage period and sustenance of growth momentum.
  • Price: Reasonable valuation, relative to quality and growth prospects with high margin of safety.

Once they have identified stocks that meet their strict QGLP criteria, Motilal aims to Sit Tight (by following a long-term buy-and-hold approach in concentrated stock portfolios.)

THEMES IN FOCUS

  • Insurance: an underpenetrated market
  • Lending Business: Consolidating space and private banks gaining market share from PSU banks
  • High-Quality Economic Recovery: Distinctive and durable market leaders likely to benefit despite short-term headwinds
  • Large-cap defensive plays: Pillars of the portfolio to help optimize risk and reward 

Trailing Performance

1yr 3yr 5yr Since Inception
Motilal AMC Business Opportunities 40.4 19.9 19 15.1
S&P BSE 500 TRI 38.3 20 20 16.1
Alpha over Broad Mkt BM 2.1 -0.1 -1 -1
Nifty 50 TRI 26.7 16.5 16.7
Alpha over Category BM 13.7 3.4 2.3

Performance as of: 30-Jun-24 | Inception Date: 18-Dec-17

Fund Managers

Prateek Agrawal | 5-star rated FM

Executive Director | 30 yrs Experience | 2 yrs at current firm

Past Experience: BoI AXA MF (Head of Equity), BNP Paribas MF (Head of Equity), SBI Capital Markets (Head of Research)

Prateek is the CEO of Motilal Oswal AMC. He has over 3 decades of experience in fund management and research, having worked in senior positions in BoI AXA MF, BNP Paribas MF, SBI Capital Markets and ASK. In his last stint at ASK, he was spearheaded the growth of ASK PMS over this period.

Vaibhav Agarwal | 3-star rated FM

Fund Manager | 13 yrs Experience | 2 yrs at current firm

Past Experience: Analyst bank loan Ratings(Crisil)

Vaibhav Agrwal is the founder of Teji Mandi, which is a platform aimed at helping retail investors in india navigate the volatility of the markets through affordable and quality advisory. He has managed a proprietary pms and has over a decade experience in stock picking and generating index-beating returns.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1.5% fixed + 15% above 10% hurdle
Exit Fees1yr(2%)

AMC

AMC: Motilal Oswal AMC PMS (click link for detailed AMC review)

Not a top recommendation (at this time) due to weak recent performance: Motilal PMS comes with a very high level of pedigree. Co-founded by a highly-respected and pedigreed investor, Motilal has a number of advantages - stability of its core PMS investment team, very strong investment processes, a very clearly defined investment philosophy and the benefits of the backing of a strong broking & MF business. However, this strong pedigree has failed to reflect in the performance of the strategies (which have been weak, especially in recent years), which results in a lower 3-star rating for one of the more established PMS providers.

AMC Rating

3 of 5 stars

AMC Pedigree

5 of 5 stars

AMC Size

5 of 5 stars

Team Pedigree

4 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

1 of 5 stars

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