Motilal Oswal Nifty Alpha 50 ETF · NSE:MOALPHA50
Motilal Oswal Nifty Alpha 50 ETF — Motilal Oswal Asset Management — Investor Presentation (August 2023)
41 slides from Motilal Oswal Nifty Alpha 50 ETF's investor presentation, August 2023
Slide 1: Asset Management: Thought Leaders in Equity
ve ASSET MANAGEMENT THOUGHT LEADERS IN EQUITY Focused, Process Driven, Ideas Powerhouse EQUITY. MOTILAL OSWAL.
Slide 2: Veritable Ecosystem in Financial Services
Veritable Ecosystem in Financial Services
Slide 3: Risk Management Framework for Consistency & Sustainability of Performance
Risk Management Framework for Consistency & Sustainability of Performance
Slide 4: Disciplined Investing following Q-G-L-P Investment Process
Disciplined Investing following “Q-G-L-P” Investment Process
Slide 5: Motilal Oswal Group – Thought – Philosophy - Action
Motilal Oswal Group – Thought – Philosophy - Action What is at stake? ~4,500+ Cr Source: MOAMC Internal, Data as on 31st July 2023
Slide 6: Motilal Oswal Equity Hybrid Fund: The Power of Debt and Equity
Motilal Oswal Equity Hybrid Fund The Power of Debt and Equity August 2023
Slide 7: Investors' Dilemma – Where to Invest?
Investors’ Dilemma – Where to Invest? We want to build wealth but short term movements in equity markets cause sleepless nights.
Slide 8: Investors' Dilemma – Where to Invest?
Investors’ Dilemma – Where to Invest? Should we just stick to conservative asset classes? Should we invest in equities? Can equity investing be less risky? Let us analyse if it is possible
Slide 9: Equity Markets are Choppy in the Short Term
Equity Markets are Choppy in the Short Term Equity movement V/S Fixed Income Movement 50% Equities are volatile in 40% the short term. However… 30% 20% 10% 0% -10% -20% -30% -40% Mar-06 Mar-11 Mar-16 Mar-21 Jun-07 Jun-12 Jun-17 Jan-07 Jul-09 Nov-07 Feb-09 Jan-12 Nov-12 Feb-14 Jul-14 Jan-17 Nov-17 Fe
Slide 10: However Equity helps build Wealth over a Long Term
However Equity helps build Wealth over a Long Term Equities help build wealth. Equity V/S Fixed Income – Growth of Rs. 1,000/- Equities have created 3x more wealth compared Rs to Debt securities 12,811 Equity Equivalent Rs 3,607 Rs 1,000 Debt Equivalent Oct’04 Dec’22 Source: Internal MOAMC Research.
Slide 11: Equity and Debt perform during different Periods
Equity and Debt perform during different Periods CRISIL Short Term Gilt Index Nifty 50 No asset class performs 80% 76% all the time. There are periods where 60% 55% equity has outperformed 40% debt and vice versa. 40% 36% 28% 31% 29% 24% 18% 15% 20% 11% 10% 9%12% 11% 6% 8% 7% 9% 8%7% 9% 9% 7% 6% 5%
Slide 12: Equity yields and Debt yields are Inversely related
Equity yields and Debt yields are Inversely related Equity Yields out- perform when debt 10.00 Nifty Yield 10-Year India G-Sec Yield yields are subdued and vice versa 9.00 8.00 Inverse relationship between equity & bond 7.00 yields 6.00 5.00 4.00 3.00 Jul-06 Aug-10 Jul-13 Aug-17 Jul-20 Feb-07 Sep-07
Slide 13: Factors affecting Equity and Debt
Factors affecting Equity and Debt Equity Debt • Economy • Prevailing interest rates Factors Affecting Price • Company fundamentals • Credit ratings • Cash flows • Duration • Favourable macro economic factors • Falling Interest Rates Positive Factors • Growth in company • Credit Upgrades • Favourable
Slide 14: A mix of Debt and Equity: Best of both worlds!
A mix of Debt and Equity: Best of both worlds! Equity Debt Equity Debt Hybrid Bonds, Debentures, Stocks of listed Instruments Money market Equity + Debt companies instruments & G-Secs Volatility High in short term Low to moderate Moderate to High Equivalent to Inflation or Long Term Returns Beats In
Slide 15: Equity and Fixed Income: Better returns at Low risk
Equity and Fixed Income: Better returns at Low risk Returns/Volatility Ratio (Higher the Returns (%) Volatility (%) better) Crisil Hybrid 35+65 Crisil Hybrid 35+65 Crisil Hybrid 35+65 Period Nifty 50 TRI Nifty 50 TRI Nifty 50 TRI - Aggressive Index - Aggressive Index - Aggressive Index 1 Year 58.5 3
Slide 16: A mix of Debt and Equity: Best of both worlds!
A mix of Debt and Equity: Best of both worlds! Equity V/S Fixed Income – Growth of Rs. 1,000/- Captures ~80% of equity Rs returns 12,811 Rs 8,200 Rs 3,607 Rs 1,000 Oct’04 Dec’22 Source: Internal MOAMC Research. Quarter on quarter data as of March 31, 1996 till Sep 30, Dec’22 Disclaimer: Equity Porti
Slide 17: Introducing: Motilal Oswal Equity Hybrid Fund
Introducing: Motilal Oswal Equity Hybrid Fund It is an investment portfolio • Equity Aims to benefit from with an ideal mix of Equities Powers wealth creation both, equities and foxed and Fixed Income income across market instruments, thus it aims to • Fixed Income cycles offer both, growth and Prot
Slide 18: Introducing: Motilal Oswal Equity Hybrid Fund
Introducing: Motilal Oswal Equity Hybrid Fund H Hybrid Scheme investing in equity and debt Y Yet reap the benefits of equity taxation B Best quality equity portfolio following the QGLP framework Right mix which makes the fund less volatile compared to broader equity market indices at the same giving
Slide 19: Asset Allocation
Asset Allocation 65% 35% 100% 0% Equity Allocation : 65% to 100% Debt Allocation: • Motilal Oswal Equity Hybrid Fund invests in a mix of equity and debt securities • It belongs to the aggressive hybrid category, investing more than 65% in equities Source: Internal MOAMC Research.
Slide 20: Broad Framework – QGLP Philosophy
Broad Framework – QGLP Philosophy 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 Q G • Operating lever
Slide 21: Additional Framework within the QGLP Philosophy
Additional Framework within the QGLP Philosophy Size of Opportunity Growth of Industry Market Share Gain - Glassdoor scores Focus on Cash flow Read annual reports of - Inhouse checklist statement more than P&L last 3 years in forensic - middle level management and BS way - ex-employees Source: MOAMC
Slide 22: Industry Leaders: Pricing Power for Sustainability of Growth
INDUSTRY LEADERS : PRICING POWER FOR SUSTAINABILITY OF GROWTH HDFC Bank Vedant Fashions Infosys Category Emerging One 97 Communication Leaders Leaders L&T Technologies Metro Brands HDFC Life Zomato ABB India KFintech Duopoly/ Specialists PI Industries Oligopoly Bharti Airtel UltraTech Cement Relianc
Slide 23: Fixed Income Portion: Portfolio Themes
Fixed Income Portion: Portfolio Themes Medium Term Maturity: 1 -3 years maturity profile Invest in fixed income securities of pristine quality, stable companies (Only AAA and AA+ rated companies) Low Risk: No aggressive Credit or Duration Calls Source: MOAMC internal analysis
Slide 24: Historical Asset Allocation
Historical Asset Allocation Active Asset Allocation 100% 90% 80% 70% 60% Equity portion is 50% more than 65% at all times 40% 30% Investors get the 20% benefits of equity taxation 10% 0% Jun-19 Oct-19 Jun-20 Oct-20 Jun-21 Oct-21 Jun-22 Oct-22 Jun-23 Jan-19 Mar-19 May-19 Nov-19 Jan-20 Mar-20 Apr-20 M
Slide 25: Historical Market Cap Mix
Historical Market Cap Mix 100.0 5.5 3.5 3.51 4.5 5.0 5.0 5.0 3.1 3.6 3.9 6.5 14.9 90.0 19.4 19.5 19.0 18.4 23.3 23.6 22.2 23.7 25.1 25.1 22.6 80.0 70.0 31.4 60.0 50.0 40.0 76.0 75.5 76.1 76.6 73.7 73.8 70.9 71.4 71.4 72.8 70.9 30.0 53.7 20.0 10.0 0.0 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
Slide 26: What are the fund holdings?
What are the fund holdings? Retailing 13.1% Top 10 Equity Holdings Banks 10.5% Finance 8.7% Script Weightage (%) Insurance 6.1% Zomato 5.2% Electrical Equipment 4.5% Pharmaceuticals & Biotechnology 4.2% Religare Enterprises 5.0% Petroleum Products 4.1% ABB India 4.5% Capital Markets 4.0% ICICI Bank
Slide 27: What are the fund holdings?
What are the fund holdings? Debt Quant Indicators Asset Allocation Average Maturity 0.70 yrs Instruments Weightage (%) YTM 7.72% Equity & Equity Related 76.7% Macaulay Duration 0.67 yrs Bonds & NCDs 18.9% Modified Duration 0.62 yrs Money Market Instrument 1.2% (CD,CBLO & Treasury Bill) Cash 3.3% Tot
Slide 28: Scheme Performance
Scheme Performance 1 Year 3 years Since Inception Point to Point Returns (%) CAGR (%) Rs. 10,000 CAGR (%) Rs. 10,000 CAGR (%) Rs. 10,000 Motilal Oswal Equity Hybrid Fund 10.5 11,054 14.5 15,002 11.5 17,168 CRISIL Hybrid 35+65 - Aggressive Index 8.8 10,878 16.1 15,659 11.6 17,269 Nifty 50 TRI 9.5 10,
Slide 29: Introducing FAB Plan: Motilal Oswal Fixed Amount Benefit Plan
MOTILAL OSWAL Introducing FAB PLAN Motilal Oswal Fixed Amount Benefit Plan
Slide 30: A Plan which aims to get you Regular Withdrawal
A Plan which aims to get you Regular Withdrawal Amount for expense management
Slide 31: 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 32: Motilal Oswal Equity Hybrid Fund
Motilal Oswal Equity Hybrid Fund Investment / Withdrawals (C) Returns Closing Balance Tax on Year Opening Balance (B) (A+B-C) Withdrawals (A) Out of Capital From Gains Total 2019 1,00,00,000 15,83,757 - - - 1,15,83,757 2020 1,15,83,757 17,76,003 1,50,890 4,49,110 6,00,000 1,27,59,759 5,089 2021 1,27
Slide 33: Nifty 500 TRI
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 34: Now that's a FAB Plan
Now that’s a FAB Plan Tax efficient returns oe yy 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 a Suitable for several goals including
Slide 35: Fund Manager – Equity Component
Fund Manager – Equity Component For Equity Component: Mr. Santosh Singh Rich Experience: Mr. Santosh Kumar Singh has over 16 years of experience across his tenure. Experience: Mr. Singh was associated with Haitong International Securities Ltd. as Head of Research and Lead Analyst where he was respon
Slide 36: 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 37: Fund Facts
Fund Facts Type of the Scheme An open ended hybrid scheme investing predominantly in equity and equity related instruments Category of the Scheme Aggressive Hybrid Fund The investment objective is to generate equity linked returns by investing in a combined portfolio of equity and equity Investment
Slide 38: Fund Facts
Fund Facts Plans Regular Plan and Direct Plan Options (Under each plan): Dividend (Payout and Reinvestment) and Growth Minimum Application Amount: Rs. 500/- and in multiples of Re. 1/- thereafter Additional Application Amount: Rs. 500/- and in multiples of Re. 1/- thereafter Weekly SIP Fortnightly S
Slide 39: Product Labelling
Product Labelling Kindly refer to the one pager for details of other schemes managed by the fund managers: https://www.motilaloswalmf.com/CMS/assets/uploads/Documents/53dbb-motilal-oswal-equity-hybrid- fund-product-note-31st-august-2023.pdf
Slide 40: 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 and terms an
Slide 41: Thank You
THANK YOU THINK EQUITY. THINK MOTILAL OSWAL.
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