Fund Snapshot
| Year of Inception | 2002 |
| Number of Stocks | 26 |
| Investment Horizon | Long Term |
| Fund Managers | Manish Sonthalia |
Investment Philosophy
By investing in shares from various industries, the strategy aims to outperform the market. MOTILAL OSWAL Value Strategy plans to invest in equities across the market capitalisation spectrum, focusing on identifying potential winners who will participate in successive stages of GDP growth.
Identifies emerging stocks or sectors that guarantee above-average growth and focuses on sectors and companies. The development of themes is emphasised. The “Buy and Hold” strategy.
The strategy’s direction is to invest in equity and equity-related funds across large corporations’ entire market capitalisation spectrum. The strategy seeks to benefit from the long-term compounding effect of investments in good businesses run by great business managers to create superior wealth.
Their portfolios are elevated conviction portfolios, with an ideal number of 25 to 30 stocks. We presume adequate diversification, but excessive diversification dilutes returns for our investors and increases market risk.
Concentrate on Return on Net Worth: Companies are likely to earn 20-25% on their net worth in the future.
- The margin of safety: Buying a good business for a fraction of its true value.
- Balance of growth and value:
- The emphasis is on purchasing undervalued companies.
- Investing in assets with stable earnings/cash flows at a reasonable price.
- Long-term commitment View: “Money is made by investing for the long term,” in my opinion.
- Bottom-Up Approach: Focus on individual companies and their management bandwidth to identify potential long-term wealth creators.
- Concentrated Strategy Construct: There should be no more than 15 to 20 stocks.
Unique Feature
Investing using the buy-right, tsit-tight approach
Investment Objective
The strategy seeks to benefit from the long-term compounding effect of investments in good businesses run by great business managers to create superior wealth.
Importance of The ‘Buy Right: Sit Tight’
Real wealth is created by riding out most of a quality company’s growth curve rather than trading in and out in response to buy, sell, and hold recommendations. This philosophy lets investors and managers stay focused on their businesses rather than distracted by share price movements.
A strategy of purchasing high-quality stocks and holding them for long-term wealth creation results in significant cost savings for the end investor. Long-term wealth multiplication is only possible by sticking with the winners and abandoning the losers.
While Buy Right is primarily the responsibility of the portfolio manager, Sit Tight necessitates the participation of both the portfolio manager and the investor. It requires greater accountability from the manager and greater involvement and understanding from the investor, resulting in better learning for the latter.
Buy And Hold Strategy
- The strategy results in low churn, lower costs, and higher returns.
- A company is wisely chosen for investment after thoroughly examining its underlying hidden long-term potential.
- Motilal Oswal strictly buys and holds investors. We believe that selecting the right business requires skill, as does holding onto these businesses to allow our investors to stand to gain from the entire growth phase.
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Learn about the experienced fund managers responsible for investment decisions, portfolio strategy, and long-term fund performance.
Mr. Manish Sonthalia
Since its establishment, Manish has been overseeing the Strategy and acting as the Director of the Motilal Oswal India Fund, Mauritius. He has worked at Motilal Oswal PMS for more than 14 years and has over 25 years of expertise in equities research and fund management. He has overseen the management of different PMS strategies and AIFs at MOAMC and served as the foundational pillar of the PMS investing process. Manish has many postgraduate degrees, such as an MBA in Finance, an FCA, a CS (Company Secretary), and a cost and works accounting (CWA).
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Raamdeo Agrawal
Raamdeo Agrawal is the Chairman and Co-founder of Motilal Oswal Financial Services Limited (MOFSL), which he established with Motilal Oswal in 1987. He also serves as Chairman of Motilal Oswal Asset Management Company (MOAMC). His contribution to Indian equity investing is closely associated with the QGLP investment framework, the principle of Buy Right, Sit Tight, and the annual Motilal Oswal Wealth Creation Study.
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