facebook

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 (1332.6 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 34.3 16.3 17.6 13.1
S&P BSE 500 TRI 39.5 19.5 19 14.8
Alpha over Broad Mkt BM -5.2 -3.2 -1.4 -1.7
Nifty 50 TRI 28.5 16.2 16.7
Alpha over Category BM 5.8 0.1 0.9

Performance as of: 28-Feb-23 | Inception Date: 18-Dec-17

Fund Managers

Manish Sonthalia | 5-star rated FM

CIO | 26 yrs Experience | 20 yrs at current firm

Past Experience: SKP Securities (VP)

Manish has spent most of his career at Motilal, having joined Motilal in 2004 from SKP Securities. He is the CIO-Equities at Motilal PMS and along with Ramdeo Agarwal has been instrumental in the growth and performance of the PMS strategies.

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

5 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

1 of 5 stars

Get substantially greater insights by connecting with us!

Details shared on the public website, are only a short snapshot of the more detailed analysis that resides in our Proprietary Research Management Solution (RMS) – A proprietary cloud-based tool, that ensures that the unbiased research insights of our central research team are shared directly with investors.

Our RMS allows us to operate with a level of transparency, ethics & consistency of insights, that is unparrarelled in the industry. Our RM’s will help showcase the PMS/AIF options that are the most suited for your unique requirements.

Download Sample RMS Reports: AMC View | Scheme Comparison

Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.