Why Investing in Motilal Oswal Mutual Fund Is Important?

Posted by Dishika Baheti on March 8th, 2018

In this era of globalization and fast changing trend, everyone who wants to achieve success, would want to stand on one’s own feet. No! It’s not just representing the ‘men-working- class’ of the society, but also mirroring all those women who are willing to have an independent future. No matter if you are earning less, you always have this option to safeguard the future by using the savings wisely and judiciously. By this, we mean that saving must be done with a purpose and that purpose can be fulfilled by investing those savings in mutual funds. Now you would be wondering which mutual fund will best accomplish your goals. In order to lessen your worry and increase the worth of your savings, Motilal Oswal Mutual Fund is at your service.

Motilal Oswal Asset Management Company is a public limited company which is incorporated under the Companies Act, 1956, on November 14, 2008. It is one of the fastest growing AMCs in India which works with the motive of ‘buy and hold’.

Motilal Oswal Mutual Fund-Philosophy
As stated above, the AMC functions on the concept of ‘Buy Right and Sit Tight’, so that the investors could understand the worth of choosing the right funds for portfolio and investing for a longer horizon. This AMC tends to buy the stocks of quality companies at a reasonable price and stay invested in them for a good time period to unleash the full potential of the stocks.

To buy the right socks from the market, they follow up an approach of Q-G-L-P, which says:

Q- The companies in which they are going to invest must have a quality business and management.

R- Stands here for the company’s RoE ratio, i.e., Return-on-Equity ratio, which measures the growth of the company. It can be calculated as:

RoE= Net Income/ Shareholder’s Equity

L- This is for measuring the longevity of the competitive advantage, i.e., how well the stocks of companies will result in long term horizon.

P- P depicts the price at which the AMC buys the stocks of a company because they believe in buying business at a fair price rather than buying a fair business at a good price.

The ‘sit tight’ approach looks for focus and discipline while investing

The AMC believes in buying the right stocks and the process involves deep research and analysis techniques. These stocks are supposed to unveil their potential in future by giving higher returns.

Top Recommended Funds of Motilal Oswal MF:

The funds recommended as their best performers are given below with their comparison with the respective benchmarks:

1. Motilal Oswal MOSt Focused Multicap 35 Fund G-
   The fund has an objective of investing mainly in a maximum of 35 equity and equity related instruments across the market. 
2. Motilal Oswal MOSt Focused 25 Fund G-
   This scheme aims at generating monetary growth by investing in a maximum of 25 large-cap companies having a long-term sustainable competitive advantage and growth potential. 

These are the funds that have managed to outperform the benchmark by providing outstanding returns. 

Advantage of Investing in This AMC:

This AMC concentrates on picking up those companies that have a low stock price, but contain great potential to grow in future. The funds focus on propagating risk-adjusted returns and apply a bottom-up analysis approach. They put emphasis on buying only quality stocks of 15-20 companies at reasonable prices.

So, if you are someone, who wants to have financially secured future, you must start planning today. Saving is a good habit to accomplish that, but saving alone would not help. Investing that saving will lead you to a better and expected future. And after seeing all the advantages of Moilal Oswal Mutual Fund, considering it for a long term investment will prove to be of worth.