SIP KARO NISCHINT RAHO (For MOAMC Schemes)

January 2021
 Investment Return & Investor Return Relation

“Typically, the studies find that the returns investors have earned over time are much lower than the returns of the
average investment.”
― Carl Richards.
Focus On Music Not On Noise
Journey of Nifty 50 for 26 Years
Nifty 50 `
Years Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 Yr 20 Yr 21 Yr 22 Yr 23 Yr 24 Yr 25 Yr 26*
1995 -23% -13% -3% -7% 5% 1% -2% -1% 5% 6% 8% 11% 14% 7% 10% 11% 8% 9% 9% 10% 9% 9% 10% 10% 10% 10%
1996 -1% 9% -1% 13% 7% 3% 3% 10% 10% 12% 14% 17% 10% 13% 14% 11% 12% 11% 12% 11% 11% 12% 11% 11% 11%
1997 20% -1% 18% 9% 3% 3% 11% 11% 14% 16% 19% 10% 14% 15% 12% 12% 12% 13% 12% 12% 12% 12% 12% 12%
1998 -18% 17% 5% 0% 0% 10% 10% 13% 16% 19% 10% 14% 14% 11% 12% 12% 13% 12% 11% 12% 12% 12% 11%
1999 67% 20% 6% 5% 16% 15% 18% 21% 24% 13% 17% 18% 14% 15% 14% 15% 14% 13% 14% 13% 13% 13%
2000 -15% -15% -10% 6% 7% 11% 15% 19% 8% 13% 14% 10% 11% 11% 12% 11% 11% 12% 11% 11% 11%
2001 -16% -7% 14% 13% 18% 21% 25% 11% 17% 17% 13% 14% 13% 14% 13% 12% 13% 13% 13% 12%
2002 3% 33% 25% 28% 30% 34% 16% 22% 22% 16% 17% 16% 17% 15% 15% 15% 15% 15% 14%
2003 72% 38% 37% 38% 41% 18% 25% 24% 17% 18% 17% 18% 16% 15% 16% 15% 15% 15%
2004 11% 23% 28% 34% 9% 18% 18% 12% 14% 13% 14% 13% 12% 13% 12% 12% 12%
2005 36% 38% 43% 9% 20% 20% 12% 14% 13% 15% 13% 12% 13% 13% 12% 12%
2006 40% 47% 1% 16% 17% 8% 11% 10% 13% 11% 10% 12% 11% 11% 11%
2007 55% -14% 9% 12% 3% 7% 7% 10% 8% 8% 9% 9% 9% 9%
2008 -52% -8% 0% -7% -1% 0% 4% 3% 3% 6% 5% 6% 6%
2009 76% 44% 16% 19% 16% 19% 15% 14% 15% 14% 14% 13%
2010 18% -6% 4% 5% 10% 7% 7% 9% 9% 9% 9%
2011 -25% -2% 1% 8% 5% 5% 8% 7% 8% 8%
2012 28% 17% 21% 14% 12% 15% 13% 13% 12%
2013 7% 18% 10% 9% 12% 11% 11% 10%
2014 31% 12% 9% 14% 11% 12% 11%
2015 -4% -1% 8% 7% 8% 8%
2016 3% 15% 11% 11% 10%
2017 29% 15% 14% 12%
2018 3% 7% 7%
2019 12% 9%
2020* 7%

No of obs 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
% of Positive
69% 64% 83% 87% 95% 100% 95% 95% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
obs
No of
18 16 20 20 21 21 19 18 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Positive obs
Disclaimer: Past performance may or may not be sustained in future,
*2020 returns are as of 30th Nov
 What is an SIP?

A Systematic Investment Plan or better known as SIP is based on the simple idea of investing a
fixed amount at fixed intervals, for a long time to achieve long-term benefits.

• Lighter on the wallet.

• Makes market timing irrelevant.
• Enables rupee-cost averaging.
• Benefits from power of compounding.
• Helps in goal planning.
 Why SIP ?

1. Disciplined Savings: SIP keeps involving investors to contribute an amount to the pool at regular intervals.

This keeps investors more disciplined in their approach.

2. Rupee Cost Averaging: SIPs are based on Rupee Cost averaging. It removes the element of timing the

market from investing.

3. Compounding Effects: SIP helps getting compounding benefit. Those who start early get the maximum

advantage.

4. Reduces the average cost of investment: It helps in tapping the tops and bottoms of a stock market, thus,

average out the cost per unit.

5. Time value of money: SIP returns can meet up the raised cost of your dream in future. So that you can

meet up them with current saving.

^ Long term capital gain tax for equity MF – 10%, Debt products – as per tax slab.
How can we build a bigger corpus- By Starting to Invest Early

SIP in Sensex Early Starter Late Starter Early Starter Late Starter

Amount Invested (INR) 10,000 20,000 10,000 20,000

Date of Investment 01-01-2000 01-01-2010 01-01-1990 01-01-2005

No.of.SIP Installments 252 132 372 192

Total Amount Invested (In INR Lakhs) 25.20 26.40 37.20 38.40
Market Value of Investment in INR Lakhs
124.02 48.15 366.97 95.79
(As on 31st Dec,2020)
XIRR(%) 13.34 11.59 12.27 11.30

Cost of Delay(In INR Lakhs)

75.87 271.18

• By starting early, the Investor’s wealth grew 3.6 times that of the investor who started
late.
• Compounding helps to create wonders – So starting early even with a small amount
helps the wealth to grow in the long run.

Cost of Delay= Market Value of Investment of Early Starter-Market Value of Investment of Late Starter

* Data as on 31st December 2020.

How have SIP contributed in the MF AUM?

Financial Year Wise SIP(In Crs.)

1,20,000

1,00,084
1,00,000 92,693

80,000
67,190
62,929
60,000
43,921
40,000

20,000

-
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FYTD

The SIP contribution in the MF Industry have been quite impressive. The amount that has
been mobilised has more than doubled from 43,291 Crs in FY 2016-17 to 1,00,084 Crs in FY
2019-20
Fund Updates

o Motilal Oswal Multicap 35 Fund o Motilal Oswal Long Term Equity Fund

o Motilal Oswal Midcap 30 Fund o Motilal Oswal Equity Hybrid Fund

o Motilal Oswal Focused 25 Fund o Motilal Oswal Dynamic Equity Fund

o Motilal Oswal Large & Midcap Fund o Motilal Oswal Multi-Asset Fund
Motilal Oswal Multicap 35 Fund & Motilal Oswal Midcap 30 Fund

Why Motilal Oswal Multicap 35 Fund?

• Consistent Wealth Creation For Investors: generated 4% alpha since inception.

• Best Among Peers - 84% Strike Rate of Outperformance: outperformed benchmark
in 5 of 6 financial years
• Track record of picking multibaggers early drove outperformance.
• High Conviction reflected in Fewer Holdings Than Peers: F35 holds 25 stocks.
compared to category average of 55.
• Ahead on EPS Growth, ROE but similar valuation.

Why Motilal Oswal Midcap 30 Fund?

• Active Share-Least overlap with benchmark.

• Have concentrated portfolio.
• High risk adjusted returns.
• Key Sectors- Retail Financials,Consumer Durables,Pharma & diagnostics,Lifestyle,Rural plays and
chemicals and Auto.
 Motilal Oswal Focused 25 Fund & Motilal Oswal Large and MidCap Fund

Why Motilal Oswal Focused 25 Fund?

• Have concentrated portfolio.

• Index agnostic- Active Share-47% away from benchmark
• Low churn ratio.
• Focused funds have greater ability in identifying winners-they have minimum 80% allocation to largecap
stocks and minimum 65% allocation to focused segment.
• High conviction ideas with improved risk-adjusted return characteristics.
• F25 has outperformed the category average by 6.2% in 1 year,2.6% in 3 years,1.8% in 5 years,1.9% in 7
years & 2.1% Since inception

Why Motilal Oswal Large & MidCap Fund?

• Quality & Growth- Less volatile large caps and high growth midcaps.
• Large & Midcap :- A mix of quality and growth.
• Quality of large caps and growth potential of midcaps provides better risk adjusted returns.
• An optimal mix of Large Caps and Mid Caps which can deliver high growth with lower volatility.
• Concentrated portfolio of 25 stocks.
• It follows the buy right and sit tight principle, thereby holding quality companies for a long period of
time.
• It follows a discipline approach towards allocation - minimum allocation to both large and midcap
stocks.
 Motilal Oswal Long Term Equity Fund & Motilal Oswal Dynamic Fund

Why Motilal Oswal Long Term Equity Fund ?

• The investment objective of the Scheme is to generate long-term capital appreciation from a diversified
portfolio of predominantly equity and equity related instruments.
• MOFLTE would endeavor to construct such a portfolio that the product is best suited for medium and
long term investment.
• 5+ year track record with alpha of 3% since inception as on 30th Nov, 2020
• Invests across market caps in high conviction ideas with improved risk-adjusted return characteristics.
• ‘360 degree view’ of company to identify competitive advantages.

Why Motilal Oswal Dynamic Fund ?

• Motilal Oswal Value Index- Ensures Buy Low Sell High Discipline
• Rebalancing decisions are based on a well-defined and tested model that removes biases of any kind
• Risk adjusted returns are similar to investments in Equity and with low volatility across market
conditions
• The investment objective is to generate long term capital appreciation by investing in equity and equity
related instruments including equity derivatives, debt, money market instruments and units issued by
REITs and InvITs.
• The fund offers flexibility in investments between equity and debt based on appropriate market timings.
 Motilal Oswal Equity Hybrid Fund & Motilal Oswal Multi Asset Fund

Why Motilal Oswal Equity Hybrid Fund ?

• An ideal mix of Equities and Fixed Income instruments : aims to offer growth and stability.
• Fixed allocation Fund with 65-70%in equity and balance in debt
• Lower standard deviation of the fund is 16.2% V/s 21.0% of Nifty 50
• Best performer in the category since inception
• Outperformed peers since inception.

Why Motilal Oswal Multi Asset Fund ?

• Combination of four asset classes, namely equity, debt, gold and international equities which have a low
correlation with each other, tends to smoothen out volatility.
• Different asset classes move up and down the ranking of best performing asset class
• Chasing the best asset class of the last year can be detrimental to the wealth creation journey
• Better Risk Adjusted returns with 3YR Standard Deviation of 4.9% in the back test compared to 21% for
Nifty
• High Diversification into multiple asset classes with zero negative returns in 3YR daily rolling basis.
SIP Monthly Update

o Motilal Oswal Multicap 35 Fund o Motilal Oswal Long Term Equity Fund

o Motilal Oswal Midcap 30 Fund o Motilal Oswal Equity Hybrid Fund

o Motilal Oswal Focused 25 Fund o Motilal Oswal Dynamic Equity Fund

o Motilal Oswal Large & Midcap Fund o Motilal Oswal Multi-Asset Fund
 SIP Market Valuations and Recommendations

Monthly SIP Amount: INR 10,000/- Frequency: 1st of Every Month Returns as on: 31st December,2020
3 Years 5 Years 7 Years
Amount Amount Amount
Sub Asset Class Scheme Name Invested INR 3,60,000 Invested INR 6,00,000 Invested INR 8,40,000

Market Value XIRR% Market Value XIRR% Market Value XIRR%

Large Cap Motilal Oswal Focused 25 Fund 4,69,650 18.03 8,59,485 14.34 13,56,055 13.44
Multi Cap Motilal Oswal Multicap 35 Fund 4,25,752 11.19 7,74,632 10.15 N/A N/A
Mid Cap Motilal Oswal Midcap 30 Fund 4,29,448 11.79 7,39,584 8.29 11,42,789 9.6
ELSS Motilal Oswal Long Term Equity Fund 4,33,366 12.41 8,00,473 11.47 N/A N/A

All our MOAMC recommended schemes have generated positive returns 8 to 14% in the 5
Year bucket inspite of volatile market condition over last few years.

*Motilal Oswal Multi-Asset Fund, Motilal Oswal Large & Midcap Fund, Motilal Oswal Dynamic Equity Fund & Motilal Oswal Equity Hybrid
Fund have not completed 3 years so returns are not illustrated above.

* Data as on 31st December 2020.|”N/A” – indicates data not available

 Thank You !
Motilal Oswal Financial Services Limited (MOFSL)* Member of NSE, BSE, MCX, NCDEX CIN No.: L67190MH2005PLC153397.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi,
Mumbai-400025; Tel No.: 022-71934263; Website www.motilaloswal.com. Correspondence Office Address: Palm
Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 7188
1000. Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836. (BSE/NSE/MCX/NCDEX);
CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI: ARN - 146822; Investment Adviser:
INA000007100; Insurance Corporate Agent: CA0579. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS
(Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of
MOFSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through
MOWML, which is a group company of MOFSL. • Motilal Oswal Financial Services Limited is a distributor of Mutual
Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance Products and IPOs. • Real Estate is offered through Motilal Oswal
Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. • Private Equity is offered through
Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. • Research & Advisory
services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges
carefully before investing. There is no assurance or guarantee of the returns. PMS is not offered in Commodity
Derivatives segment. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact
No.:022-71881085. *MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August
21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law Tribunal, Mumbai Bench.
Customer having any query/feedback/ clarification may write to query@motilaloswal.com. In case of grievances for
Securities Broking write to grievances@motilaloswal.com, for DP to dpgrievances@motilaloswal.com

Investment in securities market are subject to market risks, read all the related documents carefully before investing.