Scheme Rating
IME Scheme 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).
IME Strategy Rating
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.
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 Oswal AMC PMS
Investment Philosophy
Quest PMS aims to balance value and growth by capturing market opportunity across sectors and market caps which broadly fall into these segments:
- Value: Allocation 15-25% in value stocks( Sectors like Capital goods, Autos, Cement, Telecom)
- P/E re-rating: Allocation 35-45% ( Sectors like PSU Banks, Power, Real & Home improvement)
- Growth Stocks: Allocation 35-45% ( Sectors like Financial services, IT & IT Services, Specialty chemicals)
Investment Strategy
- Avoiding the herd: Highly differentiated ideas with minimal overlapping with other MFs and PMSs.
- Active Management of Cash: Can raise cash levels to 15-20% if markets move to extreme bear phases.
- Active style Management: Book profit from time to time if valuations look stretched and there is little room for upside from that level.
Stock Attributes
- Unquestionable management track record
- Leadership position in its sector- scope for margin expansion
- Large addressable market size with few players
- Businesses which are in Y2K moment of growth and disruption
- Strong Cash flow generation capability
- Comfortable manageable leverage on books
Trailing Performance
| 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Motilal AMC Opportunity V2 | -20.5 | 43.1 | 29.6 | -5.7 | ||||||
| S&P BSE 500 TRI | 4.8 | 30.3 | 18.3 | 9 | ||||||
| Alpha (over Broad Mkt BM) | -25.3 | 12.8 | 11.3 | -14.7 | ||||||
| Nifty Midcap 150 | 1.8 | 45.1 | 23.9 | -0.3 | ||||||
| Alpha (over Category BM) | -22.3 | -2 | 5.7 | -5.4 |
Fund Managers
Motilal AMC Opportunity V2
AMC
AMC: (click link for detailed AMC review)
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.