Motilal Oswal 25-for-25 Strategy

The Motilal Oswal 25-for-25 Strategy is a discretionary equity PMS built around a distinctive long-term investment objective: investing in 25 good businesses for the next 25 years. The approach focuses on long-term compounding, business quality and the potential to create wealth through patient ownership.

The strategy was registered on 22 February 2021 and carries a historical minimum investment requirement of ₹50 lakh. Its stated objective makes it different from conventional equity strategies that frequently adjust holdings based on short-term market movements.

However, the strategy's latest reported AUM is ₹0 crore, and its published performance feed currently displays zero returns. It is not included in the AMC's current publicly displayed PMS offerings. Accordingly, this page presents its investment philosophy and historical details, not a confirmation of fresh subscription availability.

Motilal Oswal 25-for-25 Strategy: Fund Snapshot and Key Terms

What Is Motilal Oswal 25-for-25 Strategy?

Motilal Oswal 25-for-25 Strategy is a discretionary PMS that seeks long-term compounding by investing in 25 good businesses for the next 25 years. Its investment philosophy centres on identifying businesses with the potential to create lasting shareholder value.

The name captures two central ideas:

• 25 businesses: A focused investment approach built around a select group of businesses.
• 25 years: A long-term ownership philosophy that gives businesses time to grow and compound.

The strategy aims to benefit from the long-term compounding effect of investments in businesses managed by capable leaders.

Instead of treating every market correction as a reason to trade, the approach emphasises patience and business fundamentals. The underlying idea is that meaningful wealth creation can take time.

The Motilal Oswal 25-for-25 PMS is relevant to investors researching concentrated equity strategies and long-term investment approaches. It may be of interest to investors who understand the risks of holding a relatively focused equity portfolio through different market cycles.

However, a 25-year investment objective is not a guaranteed holding period or a promise of returns. Actual portfolio decisions, liquidity requirements and applicable exit provisions remain subject to the investment agreement.

The strategy's current subscription availability is not established.

How Does the 25-for-25 Strategy Work? Long-Term Compounding with Low Churn

The 25-for-25 investment philosophy revolves around owning good businesses for an extended period. It aims to give selected companies sufficient time to grow rather than frequently changing portfolio positions.

The 25 Businesses, 25 Years Idea

The strategy's objective is to benefit from the long-term compounding effect of investments in 25 good businesses over the next 25 years.

The idea is rooted in the relationship between business growth and shareholder wealth creation. A company that consistently expands its operations, improves profitability and allocates capital effectively may create value over several business cycles.

A focused portfolio also encourages deeper attention to individual businesses. Investors can examine the underlying economics of each holding rather than relying only on broad market exposure.

However, the stated objective does not establish that the portfolio will always contain exactly 25 stocks. The actual number of holdings and permitted deviations depend on the applicable investment mandate and portfolio disclosures.

Why the Strategy Aims for Little or No Churn

Frequent buying and selling can increase transaction costs and interrupt long-term investment theses.

A low-churn philosophy instead gives portfolio managers room to hold businesses through temporary market volatility. The emphasis remains on the underlying investment case rather than short-term price movements.

The reported portfolio turnover is 0% over one year and 0% over one month. These figures reflect the latest reported portfolio data and should not be interpreted as a guarantee that the portfolio will never change.

What a 25-Year Horizon Means for Investors

A long investment horizon requires patience and financial flexibility.

Investors should be comfortable with periods of market weakness, business setbacks and temporary portfolio underperformance. They should also avoid allocating money that may be required for near-term expenses.

The 25-year concept describes the strategy's investment philosophy. It does not mean investors are legally required to remain invested for exactly 25 years.

How Does Motilal Oswal Select the 25 Businesses?

The Motilal Oswal 25-for-25 Strategy focuses on identifying good businesses with the potential to compound wealth over the long term. Its stated objective highlights business quality and the importance of capable management.

The investment philosophy is informed by studying businesses that have created substantial wealth over extended periods. The purpose is to understand the characteristics behind sustainable wealth creation.

Learning from Long-Term Wealth Creators

Historical wealth creators offer useful lessons about business longevity, competitive advantages and earnings growth.

Companies that create lasting value often demonstrate the ability to expand their operations, reinvest profits and strengthen their market position.

Studying these businesses can help investors understand the factors that support long-term compounding.

However, historical winners are examples for learning, not predictions of future portfolio holdings. Past success does not guarantee that another company will follow the same growth path.

Business Quality, Longevity and Valuation

A long-term investment approach requires more than identifying companies with rapidly growing revenue.

The quality and sustainability of the underlying business matter equally.

Important considerations in evaluating a potential long-term wealth creator include:

Valuation remains important even when the investment horizon is long. Paying an excessive price can reduce the potential returns from an otherwise attractive business.

A margin of safety can help investors account for uncertainty in business projections and market valuations.

What the Selection Framework Does Not Promise

The 25-for-25 philosophy does not eliminate business risk or guarantee that selected companies will become long-term wealth creators.

A company may lose its competitive advantage, face regulatory challenges or experience management changes. Industry disruption can also weaken an investment thesis.

Similarly, a long holding period cannot compensate for every mistake in stock selection.

The strategy's objective should therefore be understood as an investment approach, not a return commitment.

Motilal Oswal 25-for-25 Portfolio Construction: Concentration and Market-Cap Exposure

The strategy's central investment idea is a focused portfolio of 25 businesses. It is positioned within listed equity and uses BSE 500 TRI as its declared benchmark.

Concentration makes individual stock selection particularly important. A portfolio with fewer holdings can experience a greater impact from adverse developments in any one company.

The BSE 500 TRI provides a broad equity-market reference. However, benchmark selection does not mean the strategy must replicate the index's sector or market-cap weights.

Investors evaluating the Motilal Oswal 25-for-25 portfolio should distinguish between its stated investment objective and actual portfolio construction. The latest factsheet and portfolio disclosures are necessary to understand individual holdings and their weights.

Motilal Oswal 25-for-25 Returns vs BSE 500 TRI

The BSE 500 TRI is the declared benchmark for the Motilal Oswal 25-for-25 Strategy. It provides a reference for comparing the portfolio's performance with a broad basket of Indian equities, including reinvested dividends.

The performance module should be read alongside the reporting date and benchmark period. Investors should compare matching periods rather than comparing a fund's one-year return with a benchmark's three-year CAGR.

The latest APMI-linked performance feed displays 0.00% returns. This does not establish that the strategy generated zero economic returns throughout its investment history. The available reporting does not provide a reliable current performance series for an independent comparison.

The strategy's AUM is also reported as ₹0 crore. Its published turnover figures are 0% over one month and one year.

Performance interpretation: Historical performance, where available, should be considered alongside volatility, drawdowns, portfolio concentration and benchmark-relative performance. Past performance is not indicative of future results.

Motilal Oswal 25-for-25 Minimum Investment, Fees, Exit Load and Tenure

The historical minimum investment for Motilal Oswal 25-for-25 was ₹50 lakh. Its investment philosophy is designed around long-term ownership, while the reported fee and exit-load fields are currently unavailable.

Minimum Investment

The minimum investment requirement is ₹50 lakh, in line with the regulatory minimum for PMS investments in India.

PMS investments may be funded through cash or eligible securities, subject to the portfolio manager's acceptance and applicable documentation.

Fees and Charges

The strategy's reported profile does not establish its fixed management fee, variable fee or exit load.

PMS providers generally offer different fee arrangements:

The actual fee structure depends on the PMS agreement. Investors should also account for brokerage, custody, statutory levies and other applicable expenses.

Investment Tenure

The strategy's defining feature is its 25-year investment philosophy. This represents the intended period for long-term business compounding, not a guaranteed lock-in period.

Investors should assess their liquidity needs and financial commitments before choosing a concentrated long-term equity PMS.

Motilal Oswal 25-for-25 vs Other Motilal Oswal Strategies and Mutual Funds

The Motilal Oswal 25-for-25 Strategy focuses on concentrated, long-term ownership of businesses. Other Motilal Oswal PMS approaches may follow different investment themes, holding periods and market-cap preferences.

25-for-25 PMS vs Motilal Oswal Focused 25 Fund

The Motilal Oswal 25-for-25 Strategy and Motilal Oswal Focused 25 Fund should not be treated as the same investment product.

The 25-for-25 Strategy is a discretionary PMS with an objective built around 25 businesses over 25 years.

A mutual fund, by contrast, is a pooled investment vehicle. Its portfolio, scheme documents, investment restrictions and redemption provisions are governed by its own regulatory framework.

The similarity in their names does not establish identical holdings, managers or investment mandates.

25-for-25 vs Emerging Business Strategy

The difference lies mainly in the investment objective.

The 25-for-25 approach centres on long-term compounding through a focused group of businesses. The Motilal Oswal Emerging Business Strategy focuses on mid-cap companies and sectors that may benefit from India's growth.

The latter's stated objective includes opportunities in IT, telecom, media, oil and gas. These approaches therefore represent different ways of accessing equity-market opportunities.

PMS vs Mutual Fund for Long-Term Investors

Both PMS and mutual funds can support long-term equity investing, but their ownership structures differ.

A PMS may suit investors seeking individual portfolio ownership and a defined investment mandate. Mutual funds generally provide a more accessible pooled structure.

Read how PMS differs from mutual funds for a broader comparison.

Risks of the Motilal Oswal 25-for-25 Strategy

A concentrated long-term PMS carries risks beyond general equity-market volatility. The 25-for-25 philosophy also makes business selection, valuation and holding-period decisions particularly important.

Concentration Risk

A focused portfolio can have meaningful exposure to individual companies.

If a major holding underperforms, its impact may be greater than in a widely diversified portfolio. Sector concentration can further increase this exposure.

Long Holding-Period and Investment Thesis Risk

A 25-year investment philosophy requires patience, but a business's fundamentals can change.

A company may lose market share, face technological disruption or struggle to maintain profitability. Continuing to hold a business despite deteriorating fundamentals can affect portfolio outcomes.

Long-term ownership should not mean ignoring material changes in the investment thesis.

Valuation Risk

Strong businesses can still become expensive investments.

If investors pay valuations that already reflect ambitious earnings expectations, future returns may be affected even when the company continues growing.

Company-Specific Risk

Corporate governance issues, management changes, debt problems and regulatory developments can affect individual holdings.

These risks become more relevant when a portfolio is concentrated in a limited number of businesses.

Liquidity Risk

Some equity holdings may experience lower trading volumes, particularly during market stress.

Selling a large position may take time or involve an unfavourable execution price.

Market and Benchmark Risk

The BSE 500 TRI provides a comparison with a broad market index. The strategy may underperform this benchmark during particular periods.

A focused portfolio does not necessarily move in line with the wider equity market.

Key-Person Risk

Investment decisions depend partly on the judgement and continuity of the portfolio management team.

Changes in fund management or investment philosophy can affect portfolio construction and decision-making.

How Are Returns from Motilal Oswal 25-for-25 PMS Taxed?

PMS taxation in India generally follows the tax treatment of the underlying securities because investors hold those securities directly in their demat accounts.

Capital gains are generally recognised in the investor's hands when securities are sold. Their tax treatment depends on the type of security, holding period and applicable tax provisions.

For qualifying listed equity transactions meeting the relevant STT conditions:

Applicable surcharge and cess are additional. Different rules may apply to certain transactions and securities.

Investors should consult a qualified tax advisor before making decisions involving PMS taxation, capital gains or cross-border investments.

How to Invest in Motilal Oswal 25-for-25 Strategy?

The strategy is not listed among the AMC's current publicly displayed PMS offerings. Fresh investment availability is therefore not established.

For an active PMS offering, the usual onboarding process involves:

• Eligibility: Meeting the applicable PMS investment minimum and investor requirements.
• KYC: Completing PAN, identity, address and other required documentation.
• Risk Profiling: Assessing investment objectives, financial commitments and tolerance for equity-market volatility.
• PMS Agreement: Understanding the investment mandate, charges, exit conditions and reporting arrangements.
• Demat and Bank Setup: Completing the required account and settlement formalities.
• Funding: Transferring cash or eligible securities, subject to the portfolio manager's terms.

NRIs may also explore Indian PMS investments, subject to FEMA, RBI, SEBI, KYC and applicable tax requirements.

See PMS for NRI investors for further information.

How Can ALTPORT Help You Explore Motilal Oswal 25-for-25 Strategy?

Evaluating a concentrated PMS requires an understanding of the investment philosophy, portfolio manager, business selection and potential risks.

ALTPORT is an APMI-registered investment platform (APRN00074) that provides HNIs, UHNIs, family offices and NRIs with access to investment information and product comparisons.

Investors can use ALTPORT to:

• Explore available PMS investment strategies.
• Understand investment objectives and portfolio mandates.
• Compare fund managers and available performance information.
• Access relevant product documentation.
• Understand minimum investments, fee structures and associated risks.

ALTPORT provides an independent investment discovery and selection layer. It is not the issuer or investment manager of Motilal Oswal products and does not guarantee investment outcomes.

Explore PMS strategies on ALTPORT to compare available investment approaches.