Motilal Oswal Nifty Alpha 50 ETF · NSE:MOALPHA50
Motilal Oswal Nifty Alpha 50 ETF — Motilal Oswal Focused Fund — Investor Presentation (February 2023)
31 slides from Motilal Oswal Nifty Alpha 50 ETF's investor presentation, February 2023
Slide 1: Motilal Oswal Focused Fund
Motilal Oswal Focused Fund (formerly known as Motilal Oswal Focused 25 Fund) Focused LargeCap Fund February 2023
Slide 2: Industry Categorization of Large Cap, Mid Cap and Small Cap stocks
Industry Categorization of Large Cap, Mid Cap and Small Cap stocks Large Cap Top 100 Companies Scheme focused on investing in Large Mid Cap Cap stocks 101st to 250th Companies Small Cap 251st Company and beyond Source: As compiled by AMFI - As on 31st December 2022
Slide 3: Why Large Caps
Why Large Caps Strong balance sheet Experienced management teams, quality board and better stand of governance/disclosures Resilient as they can survive through different market cycles Relatively stable and less volatile Source: Internal MOAMC Research. Disclaimer:This data should not used for devel
Slide 4: Why Large Caps: Room for growth
Why Large Caps Room for growth. Nifty 100 constituents combined have a smaller market cap than the world’s largest company Market cap of Top 5 International companies Market cap of Top 5 Indian companies Market cap in Lakh Crs (INR) Market cap in Lakh Crs (INR) 171 156 148 95 71 17 12 9 6 6 Stock 1
Slide 5: Why Focused Portfolio
Why Focused Portfolio Weights 3 Year Returns Stock A 10% 25% 20% Returns Stock B 10% 20% from top 3 stocks Stock C 10% 15% Focusing on Stock D 10% 8% few quality Stock E 10% 7% 13% higher stocks can Stock F 10% 5% returns from greatly Focused Stock G 10% 5% Portfolio enhance the Stock H 10% 2% perfo
Slide 6: Does “less (Stocks)” mean “more Risk”?
Does “less(Stocks)” mean “more Risk”? Non-systemic risk decreases with increasing number of stocks, but only up to a limit Risks whish are For example: Systematic applicable to all Inflation, war, Risk (Market players of the interest rates, Risk) market recession, etc. Risks Management risk, Unsyste
Slide 7: Does “less (Stocks)” mean “more Risk”? Portfolio Risk
Does “less(Stocks)” mean “more Risk”? Key Question to ask: To what extent does having more stocks in a portfolio reduce Diversifiable risk? Having 20 -30 stocks in a portfolio, reduces non-systematic risk • Based on Unsystematic / Diversifiable Risk Modern Portfolio Portfolio Risk Theory, Unsystemat
Slide 8: Introducing: Motilal Oswal Focused Fund
Introducing: Motilal Oswal Focused Fund A Large Cap oriented fund. Highly Concentrated Portfolio. Large Mid Cap Cap 17.9% 56% Top 10 63% Top 5 79.7% Small Cap stocks Sector 2.3% Source: Internal MOAMC Research. Data as on 28th February’23 Disclaimer:This data should not used for development or imple
Slide 9: Why Invest in Motilal Oswal Focused Fund?
Why Invest in Motilal Oswal Focused Fund? High Conviction Concentrated Portfolio • Concentrated Portfolio of not more than 30 stocks Large Cap Oriented • Large cap oriented focused portfolio Benchmark Agnostic • Least overlap with the benchmark Strong Stock Picking Process • QGLP framework for botto
Slide 10: #1 Concentrated portfolio - True to mandate Focused Fund
#1 Concentrated portfolio - True to mandate Focused Fund No. of stocks in the last 6 months 31 29 29 27 27 25 25 24 23 23 23 21 19 17 15 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Data as on February 28 , 2023 The Stocks/Sectors mentioned above are used to explain the concept and is for illustration
Slide 11: #2 Large cap oriented focused fund – Greater flexibility
#2 Large cap oriented focused fund – Greater flexibility in portfolio structure Large Cap Mid Cap Small Cap (Top 100) (101- 250) (Below 250) Large Cap > 80% 0 – 20 % Focused Fund > 65% 0 – 35 % • Minimum allocation to Large cap should be 65% • Higher flexibility in portfolio construction; thus the f
Slide 12: #3 Benchmark agnostic
#3 Benchmark agnostic Benchmark agnostic portfolio is testament to bottoms up stock picking of high conviction companies • Active weights Top 5 Stocks with least overlap with Benchmark means having Weightage (%) in Weightage (%) in portion of the Script portfolio portfolio Index 63% which does not h
Slide 13: #4 QGLP Framework
#4 QGLP Framework Quality of business x Quality of management Growth in earnings • Stable business, preferably consumer facing • Volume growth • Huge business opportunity • Price growth • Sustainable competitive advantage • Mix change • Competent management team • Operating & Financial leverage • He
Slide 14: QGLP Exemplified
QGLP Exemplified Quality FY25E RoE of 16% 22% EPS Growth Expected over Growth FY22-25 Longevity High Price PE: 20x FY25E, PEG 2 Years: 1.4x Data as on 31st January 2023 Source: MOAMC Internal Research
Slide 15: Portfolio buckets: Essential Goods, Essential Services, Economy Proxies
Industry Categorization of Large Cap, Mid Cap and Small Cap stocks Essential Goods Essential Services Economy Proxies ~13% ~53% ~33% 1. HDFC Bank 11. IDFC First 1. Maruti 2. ICICI Bank 12. Kfin Tech 2. Concor 1. Abbott 3. HDFC Life 13. Bajaj Finance 3. ABB 2. PI Industries 4. ICICI Lombard 14. Globa
Slide 16: Market Cap Mix
Market Cap Mix 100.0 10.0 LHS 1.3 1.9 2.3 RHS MCAP CASH 90.0 9.0 23.1 24.2 22.8 23.3 24.6 20.3 18.8 17.8 27.9 29.2 29.1 80.0 21.3 8.0 70.0 7.0 60.0 6.0 50.0 5.0 40.0 79.2 4.0 75.3 75.1 76.0 76.2 74.7 76.9 77.2 69.6 71.2 69.7 70.3 30.0 3.0 20.0 2.0 10.0 1.0 0.0 0.0 Mar-22 Apr-22 May-22 Jun-22 Jul-22
Slide 17: High Conviction Portfolio
High Conviction Portfolio A high concentration portfolio consisting of 27 stocks. Banks 27.5% Retailing 12.1% Top 10 Equity Holdings IT - Software 9.3% Electrical Equipment 7.9% Script Weightage (%) Insurance 6.0% HDFC Bank Limited 10.39% Automobiles 5.0% Pharmaceuticals & Biotechnology 5.0% ICICI B
Slide 18: Scheme Performance
Scheme Performance 1 Year 3 Years 5 Years Since Inception Point to Point Returns (%) CAGR (%) Rs. 10000 CAGR (%) Rs. 10000 CAGR (%) Rs. 10000 CAGR (%) Rs. 10000 Motilal Oswal Focused Fund 3.3 10,333 10.3 13,430 8.2 14,865 12.4 31,451 (Formerly known as Motilal Oswal Focused 25 Fund) Nifty 500 TRI (B
Slide 19: Introducing FAB Plan
MOTILAL OSWAL Introducing FAB PLAN Motilal Oswal Fixed Amount Benefit Plan
Slide 20: A Plan which aims to get you
A Plan which aims to get you Regular Withdrawal Amount for expense management
Slide 21: Key Specs
Key Specs What is FAB Plan? Motilal Oswal Fixed Amount Benefit Plan (FAB) enables you to withdraw a regular sum of your investments at a fixed percentage and predefined frequency of your original investment, irrespective of the movement in the market value of the investment, subject to availability
Slide 22: Motilal Oswal Focused Fund FAB illustration
Motilal Oswal Focused Fund Investment / Withdrawals (C) Returns Closing Balance Tax on Year Opening Balance (B) (A+B-C) Withdrawals (A) Out of Capital From Gains Total 2014 1,00,00,000 44,23,562 - - - 1,44,23,562 2015 1,44,23,562 8,50,523 2,76,237 5,23,763 8,00,000 1,44,74,085 17,624 2016 1,44,74,08
Slide 23: Nifty 500 TRI FAB illustration
Nifty 500 TRI Investment / Withdrawals (C) Returns Closing Balance Tax on Year Opening Balance (B) (A+B-C) Withdrawals (A) Out of Capital From Gains Total 2014 1,00,00,000 44,23,562 - - - 1,44,23,562 2015 1,44,23,562 8,50,523 2,76,237 5,23,763 8,00,000 1,44,74,085 17,624 2016 1,44,74,085 4,10,037 2,
Slide 24: Now that’s a FAB Plan
Now that’s a FAB Plan Tax efficient returns eo Ie Legacy planning for family Fixed withdrawals, independent of market movements Aims to provide enhanced investment experience relative to traditional instruments f Great tool for expense and lifestyle management Suitable for several goals including re
Slide 25: Annexure
EQUITY. MOTILAL OSWAL. M BUY RIGHT SIT TIGHT
Slide 26: Fund Managers
Fund Managers For Equity Component: Mr. Siddharth Bothra • Rich Experience: Mr Siddharth Bothra has an experience of more than 13 years in the field of research and investments • Experience across sectors: Prior to joining Motilal Oswal AMC he had an extensive stint with Motilal Oswal Securities Ltd
Slide 27: Fund Managers
Fund Managers For Debt Component: Mr. Rakesh Shetty • Rich Experience: Mr Rakesh Shetty has an experience of more than 13 years in debt and equity markets • Prestigious past experience: Prior to joining Motilal Oswal AMC he has worked with multiple organizations such as Zyfin Capital, Derivium Tradi
Slide 28: Fund Facts
Fund Facts Type of the Scheme An open ended equity scheme investing in maximum 30 stocks intending to focus on Large Cap stocks Category of the Scheme Focused Fund intending to invest in large cap stocks The investment objective of the Scheme is to achieve long term capital appreciation by investing
Slide 29: Product Labelling
Product Labelling For Risk-o-meter and PRC of Other Schemes Managed, please refer to the Factsheet: https://www.motilaloswalmf.com/download/factsheets
Slide 30: Disclaimer
Disclaimer DISCLAIMER: 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 fact
Slide 31: Thank you
EQUITY. MOTILAL OSWAL. M BUY RIGHT SIT TIGHT
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