About Company
Motilal Oswal Asset Management Company Limited
MOFSL was founded in 1987 with 2 employees as a sub-broking unit with their main focus of customer-first attitude, ethical and transparent business practices, and many more. Today Motilal is a diverse firm that is working on a range of financial products and services such as Private Wealth, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Home Finance, etc. Motilal has clients of retail customers, mutual funds, foreign institutional investors, financial institutions, corporate clients, etc. They have more than 44,00,000+ customers across the globe. They make every decision with solid research at present they have 25+ research analysts researching over 250 companies across 20 sectors.
Motilal Oswal Multifactor Equity PMS
Fund Snapshot
| Date of Inception | 6 May 2021 |
| Number of Stocks | 20-30 |
| Name of Fund Manager | Sankaranarayanan Krishnan |
Investment Objective
The Multifactor Equity PMS from Motilal Oswal aims to build a portfolio that outperforms the overall market over the cTheirse of the investment cycle by taking diversified exposure to several investing factors using a methodical, rules-based methodology.
Portfolio Strategy
The quantitative portfolio construction methodology of Motilal Oswal’s Multifactor Equity PMS tries to allocate to firms that rate well on common investing characteristics, including quality, value, momentum, and low volatility.
The Investment Factors
- Any quality that contributes to an asset’s long-term risk and returns performance is a factor.
- Factors serve as the basic building elements of all investing processes.
- E.g.: Momentum, Quality, Value, Low Vol, etc.
Commonly used Factors
- Momentum: 12 M Returns, 6 M Returns
- Quality: Leverage, Profitability
- Value: Price / Book, Price / Earnings, Dividend Yield
- Volatility: Beta, Standard, Deviation
MFE PMS Stock Selection Framework
- Opportunity Universe: Restrict Universe from 51-300 by Market Capitalization
- Apply Quality Filter: ~75 companies selected based on Quality Filter
- Choose businesses based on their value and momentum: a portfolio of 20–25 companies based on value and momentum
- Quarterly Portfolio Rebalancing
Unique Characteristics of the Portfolio
- Style diversification – use of multiple factors simultaneously
- Elimination of fund manager bias – rule-based portfolio creation
- Adaptive portfolio – Quarterly churn leading to portfolio positioning for changing market conditions (Churn Rate: ~140% p.a.)
- Higher consistency of performance
- Low correlation & exposure to Nifty 50
Buy Right. Sit Tight
The only 100% equities fund manager in India with a clear investing philosophy, An asset management organization with a strong point of differentiation, we aim to provide targeted mutual funds, PMS, and AIF strategies based on our primary competencies in equities research and investing. Our sponsor, Motilal Oswal Financial Services Limited, which has over 30 years of experience under the direction of our founder and thought leader, Raamdeo Agrawal, provides us with equity expertise. Our unique investing methodology has grown and is continually being enhanced by the application, insights, and practical lessons of our seasoned equities investment and research team through his 25 Annual Wealth Creation Studies series.
Our equity offerings have been based on our investment tenet, Buy Right: Sit Tight, where Buy Right refers to purchasing high-quality, growth-oriented businesses at a fair price and Sit Tight refers to maintaining investment in them for a considerable amount of time in order to realize the full growth potential of the underlying business. We aim to manage portfolios with about 20–25 high conviction holdings and little portfolio churn, along with a “Buy and Hold” approach.
Learning from the Cockroach
Survive
Killing cockroaches is challenging. They are capable of surviving even nuclear apocalypses.
Compound
Cockroaches multiply quickly. They can quickly increase in number.
Investors may benefit from a portfolio that may profit from market declines and multiply during market expansion times.
Track how the fund has performed against its benchmark over time through a comparative line graph analysis.
Motilal Oswal Multifactor Equity Strategy
Benchmark: BSE 500 TRI
Compare fund returns and benchmark performance across multiple investment periods using a visual bar graph.
Review and compare fund returns against benchmark performance across different investment periods in a detailed tabular format.
Motilal Oswal Asset Management Company Limited - Portfolio Managers
| AUM(Cr.) | 1M | 3M | 6M | 1Y | 2Y | 3Y | 4Y | 5Y | Ince. | |
| Performance | ₹57.92 | -9.73 | -10.23 | -5.25 | -0.82 | -1.81 | 18.38 | 11.18 | NA | 12.20 |
| Benchmark | NA | -11.37 | -13.94 | -9.62 | -3.12 | 1.32 | 12.88 | 9.27 | NA | 11.80 |
Learn about the experienced fund managers responsible for investment decisions, portfolio strategy, and long-term fund performance.
Sankaranarayanan Krishnan
Sankaranarayanan Krishnan works with Motilal Oswal Asset Management Company Ltd. as a quant fund manager for PMS and AIF schemes. Along with overseeing the firm’s factor and quantitative research, he is also in charge of managing the funds, which is his main role. He has more than 9 years of expertise in the capital markets, with much of that time spent on developing, analysing, and administering quantitative investing methods. He previously worked as a multifactor model portfolio manager for an alternative investment company called Alpha Alternatives. He worked as a senior quantitative researcher at Morgan Stanley Capital International before that, where he designed multi-factor and ESG solutions for customers who were global pension and sovereign wealth funds. Sankaranarayanan has an MBA from the Indian Institute of Management in Indore and a degree in engineering from the National Institute of Technology in Nagpur.
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Disclaimer: Investing in AIF, PMS, Gift City or Mutual Fund is subject to market risk. Please read the related documents carefully. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. Actual portfolios may differ as a result of account size, client-imposed investment restrictions, the timing of client investments and market, economic, and individual company factors. We at ALTPORT do not guarantee any returns in the hands of investors, nor do we take any sort of accountability for the performance of the scheme.