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Motilal AMC Opportunity V2

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 IOP 2 at this time. We would wait for clearer signs of performance to improve before recommending the same.

IME Strategy Rating

Smaller company focused strategy: Motilal IoP Strategies has a relatively high share in small-caps, companies that have the potential for higher growth (but along with a higher level of risk). 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 Opportunity V2

Type: Mid & Smallcap | GARP | AUM ( cr) | Inc Date (22 Feb 2018)

Investment Philosophy

Motilal’s India Opportunity Portfolio, aims to generate long-term capital appreciation by investing in a focussed portfolio of high-growth small & mid-cap stocks, that have a potential to grow more than the nominal GDP for the next 5-7 years and are available at reasonable market prices.

QGLP Framework

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.)

QGLP Framework for Small-caps

  • Quality: Motilal believes that in certain small-cap companies quality is not yet proven but quite a few tend to be at the ‘point of emergence’. Motilal defines ‘Point of Emergence’ as a point at which a company starts to generate a return on equity above the cost of equity (typically 12%)
  • Growth: Small-cap companies have a much stronger correlation to GDP growth. 
  • Longevity: many small-cap companies have huge growth potential providing a long runway for growth. The key to selecting the right small-cap companies lies in identifying high-quality management.
  • Price: prices tend to be a lot more volatile. Motilal believes ‘making money in small caps needs the vision to see, courage to buy and the patience to hold’.

Trailing Performance

1yr 3yr 5yr Since Inception
Motilal AMC Opportunity V2 0
S&P BSE 500 TRI 0
Alpha over Broad Mkt BM 0
Nifty Midcap 150
Alpha over Category BM

Performance as of: 31-Aug-24 | Inception Date: 22-Feb-18

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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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.

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