Motilal Oswal Nifty 500 Momentum 50 ETF Units Exchange Traded Fund · NSE:MOMENTUM50
Motilal Oswal Nifty 500 Momentum 50 ETF Units Exchange Traded Fund — Motilal Oswal Asset Management Company — Investor Presentation (January 2023)
60 slides from Motilal Oswal Nifty 500 Momentum 50 ETF Units Exchange Traded Fund's investor presentation, Jan 31, 2023
Slide 1: Introducing Motilal Oswal Nifty 5 year Benchmark G-Sec ETF
Introducing Motilal Oswal Nifty 5 year Benchmark G-Sec ETF (Formerly known as Motilal Oswal 5Year G Sec ETF) (An open ended scheme replicating/tracking Nifty 5 yr Benchmark G-Sec Index) and Motilal Oswal 5 Year G-Sec FoF (An open ended fund of funds scheme investing in units of Motilal Oswal Nifty 5
Slide 2: Why Fixed Income securities
Why Fixed Income securities Diversification Capital Preservation • Higher quality fixed income securities are • Historically fixed income securities have ideal for capital preservation had lower correlation with equities • Although there is still risk to the capital in • Help reduce portfolio volati
Slide 3: Fixed Income- risk/return sources
Fixed Income- risk/return sources Sources of Return Sources of Risk Interest Rate Risk Capital Interest Inflation risk Gain/loss Payments Liquidity risk Reinvestment of interest earned Credit Risk The above list is illustrative and not exhaustive For Financial Professionals. Proprietary content- Per
Slide 4: Attributes of different asset classes
Attributes of different asset classes Asset Class Risk Role Cash Least risky Provides liquidity Provides periodic interest income but Fixed Income Low to medium may have credit risk Gold Low to medium Acts as inflation hedge Earns rental income and have potential for capital appreciation but have hi
Slide 5: Fixed Deposits lost sheen over last 5 years
Fixed Deposits lost sheen over last 5 years • Fixed Deposits (term deposits) has lost it’s share to Savings Deposits from the peak of 64% in 2015 to 58% in 2019; the trend is expected to continue due to prevailing low interest rate for fixed deposits environment. • Shift in preference may be attribu
Slide 6: Illustrative calendar year returns: Fixed Deposits and 5 yr. G-sec
Illustrative calendar year returns: Fixed Deposits and 5 yr. G-sec 5 Yr. G-Sec noted higher calendar year returns in comparison to Fixed Deposits Calendar Year Return Nifty 5 yr Benchmark G-Sec Index F.D Rate 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 7: Illustration: Indexation benefit makes G-Sec more attractive over Fixed Deposit
Illustration: Indexation benefit makes G- Sec more attractive over Fixed Deposit We compared pre & post tax CAGR of Fixed Deposits & Nifty 5 Year Benchmark G-Sec Index over three blocks of ‘5- year’ periods. Nifty 5 yr Benchmark G-sec index has noted higher pre and post tax returns. Pre Tax & Post T
Slide 8: Illustrative comparison of Fixed income instruments
Illustrative comparison of Fixed income instruments PPF NSC Bank FD Debt funds Returns 7.10% 6.80% 6.25% *5.51% Safety Very Safe Very Safe Safe Market Linked Deduction under Sec 80 C for both Deduction under Sec Tax Benefit Principal/ - - 80 C Reinvestment of interest Gains fully taxable Interest fu
Slide 9: Pros and Cons of Fixed Income Instruments
Pros and Cons of Fixed Income Instruments Instrument Pros Cons • Banking system struggling with poor asset quality and governance issues • No market related risk Fixed • Perception of F.D being 'safe' taken hit after • Overdraft facility against FD Deposits few private/co-operative banks placed • Ca
Slide 10: Sweet spot between short and long duration bond
Sweet spot between short and long duration bond Falling Interest rate scenario Rising Interest rate scenario % increase in bond price due to 1% decrease in % decrease in bond price due to 1% increase in interest rate interest rate Nifty 5yr Benchmark Short Long 8% G-sec Index (Duration 2 yr) (Durati
Slide 11: Performance of active debt schemes
Performance of active debt schemes Avg. Average Return Fund Category Regular TER 1 Year 3 Years 5 Years 10 Years Banking and PSU Fund 0.68 3.3% 5.6% 6.6% 7.4% Corporate Bond 0.64 3.0% 5.7% 6.5% 7.4% Credit Risk Fund 1.49 4.3% 5.8% 5.3% 7.2% Dynamic Bond 1.23 4.4% 5.3% 6.2% 7.5% Floating Rate 0.69 4.
Slide 12: Performance of top 5 active debt schemes
Performance of top 5 active debt schemes Avg. Average Return Fund Category Regular TER 1 Year 3 Years 5 Years 10 Years Banking and PSU Fund 0.68 5.3% 6.3% 7.2% 7.9% Corporate Bond 0.64 4.1% 6.3% 7.1% 7.9% Credit Risk Fund 1.49 6.5% 7.4% 6.8% 7.5% Dynamic Bond 1.23 11.4% 6.9% 7.6% 8.5% Floating Rate
Slide 13: Indices used for comparative analysis
Indices used for comparative analysis Composition AA Category Duration (in Approx No Index Name AAA rated yrs) Yield of securities Replication G-sec bonds CP CD bonds (AA+/AA/AA-) Nifty Short Duration a a a a a 1.6 7.52% ~150 Difficult Debt Index Nifty 5yr Benchmark a r r r r 3.7 7.14% 1 Easy G-sec
Slide 14: 3yr rolling return comparison short duration debt index
3yr rolling return comparison short duration debt index 14% 12% The Nifty Short Duration Debt 10% Index has approx. ~150 8% securities that are a 6% combination of G-Sec, 4% Excess return over Short Duration Corporate Bonds, CP and CD . 2% Nifty 5 yr Benchmark G-Sec Index 0% NIFTY Short Duration Deb
Slide 15: 3yr rolling return comparison with long duration debt
3yr rolling return comparison with long duration debt 16% 14% The Nifty Long Duration Debt 12% Index has approx. ~120 10% securities that are a 8% combination of G-Sec, 6% Excess return over Long Duration Corporate Bonds, CP and CD . 4% Nifty 5 yr Benchmark G-Sec Index 2% Nifty Long Duration Debt In
Slide 16: 3yr rolling return comparison with 10yr G-sec
3yr rolling return comparison with 10yr G- sec 14% 12% 10% Nifty 5yr Benchmark G-sec 8% Index has noted 6% Excess return over 10yr G-sec outperformance to Nifty 10yr 4% Benchmark G-sec Index for Nifty 5 yr Benchmark G-Sec Index 2% ~93% of times. Nifty 10 yr Benchmark G-Sec 0% -2% -4% 3 Year Rolling
Slide 17: Feature comparison - Motilal Oswal Nifty 5 year Benchmark G-Sec ETF
Feature comparison - Motilal Oswal Nifty 5 year Benchmark G-Sec ETF (Formerly known as Motilal Oswal 5Year G Sec ETF) Motilal Oswal Nifty 5 year Benchmark G-Sec ETF Corporate Bond Fixed Particulars (An open ended scheme replicating/tracking Maturity Plan Nifty 5 yr Benchmark G-Sec Index) No of secur
Slide 18: Feature comparison - Motilal Oswal 5yr G-sec FoF
Feature comparison - Motilal Oswal 5yr G- sec FoF Motilal Oswal 5yr G-sec Fund of Fund Corporate Bond Fixed Particulars (An open ended fund of funds scheme Maturity Plan investing in units of Motilal Oswal Nifty 5 year Benchmark G-Sec ETF) No of securities 1 Multiple Replication Easy Relatively diff
Slide 19: About Motilal Oswal Nifty 5 year Benchmark G-Sec ETF and 5 Year G-Sec FoF
About Motilal Oswal Nifty 5 year Benchmark G-Sec ETF (Formerly known as Motilal Oswal 5Year G Sec ETF) (An open ended scheme replicating/tracking Nifty 5 yr Benchmark G-Sec Index) and Motilal Oswal 5 Year G-Sec FoF (An open ended fund of funds scheme investing in units of Motilal Oswal Nifty 5 year
Slide 20: Motilal Oswal Nifty 5 year Benchmark G-Sec ETF
Motilal Oswal Nifty 5 year Benchmark G- Sec ETF (Formerly known as Motilal Oswal 5Year G Sec ETF) Investment Objective Type of Scheme The Scheme seeks investment return that An open ended scheme replicating/tracking corresponds to the performance of Nifty 5 Nifty 5 year Benchmark G-sec Index year Be
Slide 21: Motilal Oswal 5 year G-sec FoF
Motilal Oswal 5 year G-sec FoF Investment Objective Type of Scheme The investment objective of the scheme is An open ended fund of funds scheme to seek returns by investing in units of investing in units of Motilal Oswal Nifty 5 Motilal Oswal Nifty 5 year Benchmark G-Sec year Benchmark G-Sec ETF. ET
Slide 22: About: Nifty 5 yr Benchmark G-sec Index
About: Nifty 5 yr Benchmark G-sec Index Index Objective: The ‘Nifty 5 year Benchmark G-Sec Index’ is a single bond index that measures the performance of the most liquid Government of India bond in the 5 year maturity segment Index Methodology Snapshot: Eligible Universe All bonds issued by Governme
Slide 23: Historical index performance
Historical index performance Nifty 5 yr. Benchmark G-sec index has delivered superior returns over indices with longer tenor. It has also noted competitive returns in comparison to the Nifty Short Duration Debt Index 350 300 250 200 Nifty 5 yr Benchmark G-Sec Index NIFTY Short Duration Debt Index 15
Slide 24: Index ratio (relative performance)
Index ratio (relative performance) The upward sloping line indicates that the 5 Year G-Sec has outperformed, while a downward sloping line indicates underperformance 1.40 1.30 1.20 1.10 5yr G-sec/Short Duration Debt 5yr G-sec/Long Duration Debt 5yr G-sec/10yr G-sec 1.00 0.90 0.80 Data Source- www.ni
Slide 25: Risk-Return payoff
Risk-Return payoff Nifty 5 yr Benchmark G- Nifty Short Duration Nifty Long Duration Nifty 10 yr Benchmark Period Sec Index Debt Index Debt Index G-Sec 1 year 2.9% 3.9% 4.0% 2.4% 3 year 5.9% 5.8% 6.1% 3.5% Annualized Returns 5 year 7.3% 6.7% 7.4% 5.5% 7 year 7.5% 7.0% 7.6% 5.8% 10 year 8.0% 7.6% 7.7%
Slide 26: Index SIP Returns: Nifty 5 yr Benchmark G-sec Index
Index SIP Returns: Nifty 5 yr Benchmark G-sec Index Nifty 5 yr Benchmark G-sec Index 1 Year 3 Year 5 Year 7 Year 10 Year SIP Returns 4.9% 4.0% 6.0% 6.6% 7.4% Amount Invested 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 Market Value 1,23,181 3,82,519 6,99,043 10,61,495 17,58,302 Data as of close of
Slide 27: Drawdown
Drawdown Nifty 5 yr Benchmark G-sec has experienced lower drawdowns compared to indices except Nifty Short Duration Debt Index. Drawdown 0% -5% Nifty 5 yr Benchmark G-Sec Index -10% NIFTY Short Duration Debt Index NIFTY Long Duration Debt Index Nifty 10 yr Benchmark G-Sec -15% -20% Data Source: www.
Slide 28: Blending G-sec With Domestic Equities
Blending G-sec With Domestic Equities For Financial Professionals. Proprietary content- Permission to reprint or distribute any content from this presentation requires 28 the written approval of Motilal Oswal Asset Management Company.
Slide 29: Calendar year return
Calendar year return Nifty 50 TR Index Nifty 5 yr Benchmark G-Sec Index 100% 80% 60% 40% 20% 0% -20% -40% -60% Bonds experience a lower fluctuation of returns compared to equities Data Source: www.niftyindices.com. Performance Data from 31-Dec-07 to 31-Dec-22. Above analysis shows calendar year retu
Slide 30: Hypothetical portfolio allocations
Hypothetical portfolio allocations Historically Debt/Bonds (Government Securities) have had very low correlation of ~13% with domestic equities, which offers very good diversification opportunity Following Hypothetical Allocations between G- Sec and Domestic Equities studied: Domestic Equity Debt #
Slide 31: Blending Nifty 5 yr. with domestic equities helps increase portfolio returns
Blending Nifty 5 yr. with domestic equities helps increase portfolio returns The blended debt-equity portfolio helps reduce volatility and enhances portfolio risk adjusted returns Historical Blended Performance 500 450 400 350 Nifty 50 TR Index 300 Nifty 5 yr Benchmark G-Sec Index 250 200 Nifty 50 :
Slide 32: Risk-Returns profile of indices: blended portfolio
Risk-Returns profile of indices: blended portfolio Data Label 1 year 3 year 5 year 7 year 10 year 15 year Nifty 5 yr G-sec Index 2.4% 6.0% 7.1% 7.6% 8.1% 8.0% Annualised Returns Nifty 50: Nifty 5 yr G-sec (60:40) 4.4% 11.8% 10.6% 11.5% 11.3% 9.7% Nifty 50: Nifty 5 yr G-sec (40:60) 3.7% 9.9% 9.5% 10.
Slide 33: Returns during stress period
Returns during stress period During period of stress, blended portfolio noted relatively lesser drawdowns Nifty 5 yr Nifty 50:Nifty 5 yr Nifty 50:Nifty 5 yr Period of stress Nifty 50 TRI Benchmark G- G-sec (60:40) G-sec (40:60) sec Index Global Financial Crisis -54.4% 16.4% -27.0% -12.8% (01-Jan-200
Slide 34: Index performance- Covid 19 pandemic
Index performance- Covid 19 pandemic The blended portfolio experienced lesser drawdown as compared to pure equity portfolio Recent Performance- During COVID 19 Pandemic Nifty 5 yr Benchmark G-Sec Index Nifty 50 TR Index Nifty 50 : Nifty 5yr Benchmark G-sec Index (60 : 40) Nifty 50 : Nifty 5yr Benchm
Slide 35: 4 reasons to invest in Motilal Oswal Nifty 5 year Benchmark G-Sec ETF
4 reasons to invest in Motilal Oswal Nifty 5 year Benchmark G-Sec ETF ‘NO’ Low Cost Default Risk (Passively managed (G-secs backed by hence low cost) Government of India) Alternative to Diversification Fixed Deposits benefit (No Lock-in, Indexation (Low correlation with Benefit, Historical equities)
Slide 36: Key Take Away
Key Take Away 1. Motilal Oswal Nifty 5 yr Benchmark G-Sec ETF (Formerly known as Motilal Oswal M50 ETF) offers investors an opportunity to invest in most liquid G-sec in the 5 year segment 2. With no lock-in, indexation benefit, and historical higher pre & post tax returns over Fixed Deposits, the N
Slide 37: Motilal Oswal Nifty 5 year Benchmark G-Sec ETF performance
Motilal Oswal Nifty 5 year Benchmark G-Sec ETF performance (Formerly known as Motilal Oswal 5Year G Sec ETF) For Financial Professionals. Proprietary content- Permission to reprint or distribute any content from this presentation requires 37 the written approval of Motilal Oswal Asset Management Com
Slide 38: Scheme Performance – Regular Plan
Scheme Performance – Regular Plan Lumpsum Performance 1 Year 3 Year 5 Year 7 Year Since Inception Current Current Current Current Current Value of Value of Value of Value of Value of CAGR (%) Investment CAGR (%) Investment CAGR (%) Investment CAGR (%) Investment CAGR (%) Investment of Rs. of Rs. of
Slide 39: Performance of other schemes managed by Rakesh Shetty
Performance of other schemes managed by Rakesh Shetty Name of Fund Manager: Rakesh Shetty Period 1 year 3 year 5 year Scheme Benchmark Scheme Benchmark Scheme Benchmark Return (%) Return (%) Return (%) Return (%) Return (%) Return (%) Motilal Oswal Midcap Fund# 10.0 2.6 20.8 21.4 14.0 11.3 Motilal O
Slide 40: Motilal Oswal Nifty 5 Year G-sec FoF performance
Motilal Oswal Nifty 5 Year G-sec FoF performance For Financial Professionals. Proprietary content- Permission to reprint or distribute any content from this presentation requires 40 the written approval of Motilal Oswal Asset Management Company.
Slide 41: Scheme Performance – Regular Plan
Scheme Performance – Regular Plan Lumpsum Performance 1 Year 3 Year 5 Year 7 Year Since Inception Current Current Current Current Current Value of Value of Value of Value of Value of CAGR (%) Investment CAGR (%) Investment CAGR (%) Investment CAGR (%) Investment CAGR (%) Investment of Rs. of Rs. of
Slide 42: Performance of other schemes managed by Rakesh Shetty
Performance of other schemes managed by Rakesh Shetty Name of Fund Manager: Rakesh Shetty Period 1 year 3 year 5 year Scheme Benchmark Scheme Benchmark Scheme Benchmark Return (%) Return (%) Return (%) Return (%) Return (%) Return (%) Motilal Oswal Midcap Fund# 10.0 2.6 20.8 21.4 14.0 11.3 Motilal O
Slide 43: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings For Financial Professionals. Proprietary content- Permission to reprint or distribute any content from this presentation requires 43 the written approval of Motilal Oswal Asset Management Company.
Slide 44: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings For Financial Professionals. Proprietary content- Permission to reprint or distribute any content from this presentation requires 44 the written approval of Motilal Oswal Asset Management Company.
Slide 45: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings For Financial Professionals. Proprietary content- Permission to reprint or distribute any content from this presentation requires 45 the written approval of Motilal Oswal Asset Management Company.
Slide 46: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings For Financial Professionals. Proprietary content- Permission to reprint or distribute any content from this presentation requires 46 the written approval of Motilal Oswal Asset Management Company.
Slide 47: Product Suitability
Product Suitability Name of the This product is suitable for investors Scheme Riskometer Benchmark Riskometer Scheme who are seeking* Fund Nifty 50 TRI Motilal Oswal Nifty 50 • Return that corresponds to the performance Index Fund of Nifty 50 Index subject to tracking error (An open ended scheme • E
Slide 48: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund Nifty 500 TRI Motilal Oswal Nifty 500 • Return that corresponds to the Index Fund performance of Nifty 500 Index subject to tracking error (An open ended scheme
Slide 49: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund S&P 500 TRI (INR) Motilal Oswal S&P 500 • Return that corresponds to the Index Fund performance of S&P 500 Index subject to (An open ended scheme tracking error
Slide 50: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund 50% Nifty 500 TRI + 20% S&P 500 TRI (INR) + 10% Domestic Price of Gold + 20% Motilal Oswal Asset Nifty 5 Yr Benchmark G-Sec Index • To generate long term growth/
Slide 51: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Motilal Oswal 5 Year G-sec Fund Nifty 5 yr Benchmark G-Sec Index • Long term capital appreciation FoF • Return that corresponds generally to the (An open ended fund o
Slide 52: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund Nifty 200 Momentum 30 TRI Motilal Oswal Nifty 200 Momentum 30 ETF • Return that corresponds to the total (An open ended fund returns of the Nifty 200 Momentum 30
Slide 53: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Motilal Oswal S&P BSE Fund S&P BSE Financials ex Bank 30 Total Return Index Financials ex Bank 30 Index • Return that corresponds to the total Fund returns of the S&P
Slide 54: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund S&P BSE Quality Total Return Index Motilal Oswal S&P BSE Quality Index Fund • Return that corresponds to the total returns of the S&P BSE Quality Total (An open
Slide 55: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Motilal Oswal Gold and Fund LBMA Price of Gold and Silver Silver ETFs Fund • Return that corresponds generally to the of Funds performance of the underlying Schemes o
Slide 56: Annexure
Annexure For Financial Professionals. Proprietary content- Permission to reprint or distribute any content from this presentation requires 56 the written approval of Motilal Oswal Asset Management Company.
Slide 57: Assumptions
Assumptions • There is new bond issued at the end of every year with a maturity of 5 year • It is assumed that the bond is purchased at auction and it is issued at par (coupon=YTM) • The coupon on the newly issued bond would be equal to the yield on the outgoing old bond as on that day. The coupon i
Slide 58: Simulated impact of yield movement
Simulated impact of yield movement Rising yield scenario Performance of 5yr bond subject to Performance of 5yr bond subject to Exhibit 1 Exhibit 2 10bps yield rise every 6m 25bps yield rise every 6m 6m 1y 2y 3y 6m 1y 2y 3y Yield 5.10% 5.20% 5.40% 5.60% Yield 5.25% 5.50% 6.00% 6.50% Simulated perform
Slide 59: Disclaimers & Risk Factors
Disclaimers & Risk Factors This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material f
Slide 60: Thank You
Thank You “You should have a strategic asset allocation mix that assumes that you don’t know what the future is going to hold” - By Ray Dalio Contact Us - Speak: +91-22 40548002 | 8108622222 Write: mfservice@motilaloswal.com Visit: www.motilaloswalmf.com
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