Motilal Oswal Mutual Fund Review: All Schemes, Track Records & Recommendations

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Motilal Oswal Mutual Fund: The Complete Investor’s Guide

Introduction

Motilal Oswal Mutual Fund stands as a prominent player in India’s asset management industry, renowned for its research-driven approach and quality-focused investment philosophy. Established in 2008 under the umbrella of Motilal Oswal Financial Services Limited, the fund house has carved a niche for itself with its distinctive “Buy Right, Sit Tight” strategy and the Q-GLP (Quality, Growth, Longevity, Price) framework that guides all investment decisions.

Quality First

Focus on companies with strong business models, competent management, and sustainable competitive advantages

Growth Focus

Seek businesses with visible growth potential and scalability in their respective sectors

Longevity

Invest with a long-term perspective, allowing compounding to work its magic

Price Discipline

Pay the right price for quality, avoiding overvalued opportunities

Detailed Scheme Analysis

Below is a comprehensive analysis of key Motilal Oswal Mutual Fund schemes with their historical performance metrics and risk profiles. All returns mentioned are historical and for illustrative purposes only.

Equity – Flexi Cap

Motilal Oswal Flexi Cap Fund

Dynamic allocation across market caps

1-Year Return 18.5%

3-Year CAGR 22.1%

5-Year CAGR 19.8%

Investment Strategy: Invests across large, mid, and small-cap stocks based on valuation and growth prospects

High Risk

Equity – Mid Cap

Motilal Oswal Midcap Fund

Focus on emerging leaders

1-Year Return 24.3%

3-Year CAGR 25.7%

5-Year CAGR 23.2%

Investment Strategy: Concentrated portfolio of 25-30 high-growth mid-cap companies

Very High Risk

FOF – International

NASDAQ 100 FOF

Global tech exposure

1-Year Return 32.5%

3-Year CAGR 28.4%

5-Year CAGR 26.7%

Investment Strategy: Invests in units of overseas funds tracking NASDAQ-100 Index

Very High Risk

Hybrid

Balanced Advantage Fund

Dynamic asset allocation

1-Year Return 15.2%

3-Year CAGR 17.8%

5-Year CAGR 16.5%

Investment Strategy: Dynamically shifts between equity and debt based on market valuations

Moderate Risk

Equity – Large & Mid

Large & Midcap Fund

Best of both worlds

1-Year Return 20.1%

3-Year CAGR 23.4%

5-Year CAGR 21.3%

Investment Strategy: Minimum 35% each in large and mid-cap stocks

High Risk

Debt

Liquid Fund

Parking short-term surplus

1-Year Return 7.2%

3-Year CAGR 6.9%

5-Year CAGR 7.1%

Investment Strategy: Ultra short-term debt instruments with high liquidity

Low Risk

Strategic Investment Recommendations

Choosing the right Motilal Oswal Mutual Fund scheme depends on your financial goals, risk appetite, and investment horizon. Here’s a guide to help you make informed decisions:

💰 For Long-Term Wealth Creation

Investor Profile: Young professionals (25-35 years), high risk appetite, investment horizon 10+ years

Recommended Schemes:
• Motilal Oswal Midcap Fund
• Motilal Oswal Flexi Cap Fund

Strategy: Start SIP with 70% in Midcap Fund and 30% in Flexi Cap Fund. Review annually.

🌍 For Global Diversification

Investor Profile: Experienced investors, looking for geographical diversification, 7+ year horizon

Recommended Schemes:
• NASDAQ 100 FOF
• Flexi Cap Fund (for domestic exposure)

Strategy: Allocate 20-30% of equity portfolio to NASDAQ FOF via SIP to benefit from US tech growth.

⚖️ For Balanced Risk Approach

Investor Profile: Middle-aged investors (40-50 years), moderate risk appetite, 5-7 year horizon

Recommended Schemes:
• Balanced Advantage Fund
• Large & Midcap Fund

Strategy: 60% in Balanced Advantage, 40% in Large & Midcap. Lump sum + SIP combination.

🏦 For Short-Term Parking

Investor Profile: All investors with surplus cash for 3-12 months

Recommended Scheme:
• Motilal Oswal Liquid Fund

Strategy: Park emergency funds and short-term goals. Better returns than savings account with high liquidity.

Frequently Asked Questions

What makes Motilal Oswal Mutual Fund different from other fund houses? +

Motilal Oswal MF distinguishes itself through its concentrated portfolio approach (typically 25-35 stocks vs industry average of 50+), strong focus on quality stocks through its Q-GLP framework, and thematic offerings like the NASDAQ 100 FOF that provide unique diversification opportunities not commonly found with other AMCs.

Is the NASDAQ 100 FOF suitable for conservative investors? +

No, the NASDAQ 100 FOF is suitable only for aggressive investors with high risk appetite. It carries additional risks including currency risk, geopolitical risk, and concentration risk in the US technology sector. Conservative investors should stick to domestic diversified funds or hybrid funds.

How has Motilal Oswal Midcap Fund performed during market corrections? +

Like all midcap funds, it experiences higher volatility during market corrections. However, its quality-focused approach helps it recover faster. During the 2020 correction, it fell approximately 35% but recovered completely within 8 months and delivered strong returns thereafter. Investors should have a minimum 7-year horizon.

What is the minimum investment required in Motilal Oswal schemes? +

For lump sum investments, the minimum is typically ₹500 for most schemes. For SIPs, the minimum is ₹500 per month. Some specific schemes may have different minimums, so always check the latest scheme information document.

How frequently should I review my Motilal Oswal investments? +

Review performance quarterly but avoid making changes based on short-term performance. Conduct a comprehensive review annually, checking if the fund still aligns with your goals, and if its performance is consistent with its category peers. Major life events (marriage, child’s education, retirement planning) should trigger reviews.

Are there any tax benefits in Motilal Oswal schemes? +

Equity funds qualify for long-term capital gains tax of 10% (without indexation) on gains above ₹1 lakh if held for more than 12 months. For holding periods less than 12 months, short-term capital gains are taxed at 15%. ELSS funds specifically offer Section 80C benefits, but Motilal Oswal currently doesn’t have an ELSS offering.

⚠️ Important Disclaimer

Mutual fund investments are subject to market risks. Read all scheme related documents carefully before investing. The information provided in this article is for educational purposes only and should not be construed as investment advice. Past performance is not indicative of future results. The author and publisher do not guarantee the accuracy or completeness of the information provided. Investors are advised to consult with a certified financial advisor before making any investment decisions. The examples and returns mentioned are illustrative and based on historical data. Actual returns may vary.