Motilal Oswal Nifty Alpha 50 ETF · NSE:MOALPHA50
Motilal Oswal Nifty Alpha 50 ETF — Motilal Oswal Focused Fund — Investor Presentation (October 2022)
29 slides from Motilal Oswal Nifty Alpha 50 ETF's investor presentation, Oct 31, 2022
Slide 1: Motilal Oswal Focused Fund
Motilal Oswal Focused Fund (Formerly known as Motilal Oswal Focused 25 Fund) 31st October, 2022 Focused large cap fund
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 Cap Mid Cap stocks 101st to 250th Companies Small Cap 251st Company and beyond Source: As compiled by AMFI - As on 30thJune 2022
Slide 3: Why Large Caps?
Why Large Caps? Quality with relative stability and resilience. 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 Researc
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) 204 169 143 101 86 17 12 9 7 6 Stock
Slide 5: Why Focused Portfolio?
Why Focused Portfolio? Focusing on few quality stocks can greatly enhance the performance of a portfolio Weights 3 Year Returns Stock A 10% 25% 20% Returns Stock B 10% 20% from top 3 Stock C 10% 15% stocks Stock D 10% 8% Stock E 10% 7% 13% higher Stock F 10% 5% returns from Stock G 10% 5% Focused Po
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 Risk applicable to all Inflation, war, (Market Risk) players of the interest rates, market recession, etc. Risks Management Unsystematic
Slide 7: 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 Modern Unsystematic / Diversifiable Risk Portfolio Theory, Unsystematic risk reduces
Slide 8: Introducing: Motilal Oswal Focused Fund
Introducing: Motilal Oswal Focused Fund A Large Cap oriented fund. Highly Concentrated Portfolio. Large Mid Cap 30% 62% Cap 59% Top 10 Top 5 70% stocks Sector Source: Internal MOAMC Research. Data as on 31st October’22 Disclaimer:This data should not used for development or implementation of an inve
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 25 25 25 25 24 24 24 23 23 22 21 20 19 18 17 16 15 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Data as on October 31, 2022 The Stocks/Sectors mentioned above are used to explain the concept and is for illustrat
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 Top 5 Stocks with least overlap with Benchmark • Active weights Weightage (%) in Weightage (%) in means having Script portion of the portfolio Index 65% portfolio 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 FY24E RoE of 18% Growth 27% EPS Growth Expected over FY22-24 Longevity High Price PE: 24x FY24E, PEG 2 Years: 1.4x Data as on 31st October 2022 Source: MOAMC Internal Research
Slide 15: Portfolio Positioning
Portfolio Positioning Essential Goods Essential Services Economy Proxies ~17% ~49% ~33% 1. HDFC Bank 2. ICICI Bank 3. HDFC Life 1. Maruti 1. Abbott 4. ICICI Lombard 2. Concor 2. PI Industries 3. ABB 5. Infosys 3. Avenue Supermarts 4. L&T 6. TCS 4. Coal India 7. Zomato 5. Vedant Fashions 5. Havells I
Slide 16: High Conviction Portfolio
High Conviction Portfolio A high concentration portfolio consisting of 23 stocks. Sector Allocation Banks 25.8% Top 10 Equity Holdings Retailing 12.4% Script Weightage (%) IT - Software 8.2% HDFC Bank Limited 9.2% Insurance 8.1% ICICI Bank Limited 7.8% Electrical Equipment 7.3% ABB India Limited 7.3
Slide 17: 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 0.3 10,026 12.6 14,297 10.3 16,313 13.8 34,015 (Formerly known as Motilal Oswal Focused 25 Fund) Nifty 500 TRI (
Slide 18: Annexure
Annexure
Slide 19: 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 20: Fund Managers
Fund Managers For Debt Component: Mr. Abhiroop Mukherjee • Rich Experience: Over 11 years of experience in the Debt and Money Market Instruments Securities trading and fund management • Prestigious past experience: His past experience includes stint at PNG Gilts as AVP-WDM dealer • Excellent academi
Slide 21: 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 22: 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 23: Motilal Oswal Mutual Funds
Motilal Oswal Mutual Funds Performance of other schemes managed by Siddharth Bothra Name of Fund Manager: Siddharth Bothra 1 year 3 year 5 year Since Inception Inception Period Scheme Benchmark Scheme Benchmark Scheme Benchmark Scheme Benchmark Date Return (%) Return (%) Return (%) Return (%) Return
Slide 24: Motilal Oswal Mutual Funds
Motilal Oswal Mutual Funds Performance of other schemes managed by Abhiroop Mukherjee Name of Fund Manager: Abhiroop Mukherjee 1 year 3 year 5 year Since Inception Inception Period Scheme Benchmark Scheme Benchmark Scheme Benchmark Scheme Benchmark Date Return (%) Return (%) Return (%) Return (%) Re
Slide 25: Riskometers of Other Schemes Managed
Motilal Oswal Mutual Funds Riskometers of Other Schemes Managed THINK EQUITY THINK MOTILAL OSWAL
Slide 26: Riskometers of Other Schemes Managed
Motilal Oswal Mutual Funds Riskometers of Other Schemes Managed THINK EQUITY THINK MOTILAL OSWAL
Slide 27: PRC of Other Schemes Managed
Motilal Oswal Mutual Funds PRC of Other Schemes Managed THINK EQUITY THINK MOTILAL OSWAL
Slide 28: 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 29: Thank you
Thank you
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