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Sip Karo Nischint Raho (For Moamc Schemes) - January 2021
Sip Karo Nischint Raho (For Moamc Schemes) - January 2021
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.
1. Disciplined Savings: SIP keeps involving investors to contribute an amount to the pool at regular intervals.
2. Rupee Cost Averaging: SIPs are based on Rupee Cost averaging. It removes the element of timing the
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,
5. Time value of money: SIP returns can meet up the raised cost of your dream in future. So that you can
^ 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
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
• 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
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 Large & Midcap Fund o Motilal Oswal Multi-Asset Fund
Motilal Oswal Multicap 35 Fund & Motilal Oswal Midcap 30 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
• 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.
• 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
• 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.
• 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 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
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.
Investment in securities market are subject to market risks, read all the related documents carefully before investing.