Motilal Oswal Vision 2030 Fund

Value Migration

• Transfer financial and shareholder value from ineffective company models to more effective ones that better meet consumer needs.
• Jewellery, Wedding Garment: Migration from Unorganized to Organized
• FMCG: Shift towards traditional/herbal players (customer preference)
• Telecom: Disruption by new players (voice to data)

Trillion Dollar

• Linear growth in the GDP = Exponential growth in opportunities
• Key drivers – Middle and High Segment Expansion, Rising per capita income fuelling consumption growth exponentially, Govt. capex (e.g. PLIs) can have a multiplier effect on other sectors

Disruption

• Modern technological startups are competing with established companies

Examples – Renewable energy changing the dynamics of the power industry, EV journey in the Auto sector, rise in On the back of food delivery services, Cloud Kitchen is set up.

New Business Models Emerge on Back of Shift in Economic Landscape.

• Technology
• Lower switching cost
• Cost
• Easier Access to Funding
• Innovation
• Convenience

Value migration occurs when there is a disconnect between customer priorities & existing business designs

Intercountry migration

• Interindustry migration in the same country
• Inter-company migration in the same industry
• One segment to another in the same company

Top 10 Holdings:

• HDFC Bank Ltd.
• Infosys Ltd.
• Axis Bank Ltd.
• Housing Development Finance Corporation Ltd.
• Larsen & Toubro Ltd.
• RBL Bank Ltd.
• Maruti Suzuki India Ltd.
• IndusInd Bank Ltd.
• Bajaj Finance Ltd.
• Tata Consultancy Services Ltd.

Today’s India: More Aspirational in its Consumption Pattern

Income Growth

• Middle and High Segment Expansion
• Reduction of Poverty
• Consumption Growth and Composition

Urbanization

• Steady and Dispersed Urbanization
• Breakdown of UrbanRural divide

Favourable Demographics

• Working age Majority
• Millennials and Gen Z

Technology and Innovation

• Existing Technology Backbone
• New Technology and Business Model Innovations

Evolving Consumer attitudes: Income, Demographics, Technology adoption led preferences

• ‘Q’uality denotes the quality of the business and management.
• ‘G’rowth denotes growth in earnings and sustained RoE.
• ‘L’ongevity denotes the longevity of the business’s competitive advantage or economic moat.
• ‘P’rice denotes our approach of buying a good business for a fair price rather than buying a fair business for a good price.

Buy and Hold: As buy-and-hold investors, we firmly believe that selecting the correct company requires talent. Maintaining these companies so our investors can profit from the development cycle requires even greater skill.

Focus: Our recommended number of equities for our high-conviction portfolios is 20 to 25. Although we think proper diversity is important, excessive diversification reduces investment returns and increases market risk.

To make money in stocks, you must have –

• The Vision to see them
• The Courage to buy them
• The Patience to hold them

Patience is the rarest of the three.

• Spend in businesses with solid QGLP and be willing to invest up to 20% of your capital in further bottom-up stock possibilities.
• When submitting the DRHP, invest in early-stage firms before they become public. Close to their IPO, use anchor allocation.
• Utilize your bargain sourcing skills MOPE

• The NAV is continuously adjusted for taxes on realised and unrealized profits. It is a post-tax, post-management fee NAV as a result.
• The trust, acting as the investor’s representative assessee, pays tax.
• Investors do not have to pay additional tax individually since the fund will pay the tax on their behalf.
• This is accurate for local individual investors. Investors with various legal entities want to speak with their tax advisors.
• The investor does not obtain a TDS certificate for the Cat III fund.
• Following the conclusion of the audit for the pertinent financial year, the fund distributes a tax letter.

Motilal Oswal Mutual Fund is a Multi Cap Equity product from Motilal Oswal Flexi Cap Fund Direct-Growth. This fund was established on July 4, 2014, making it 8 and 6 months old. As of September 30, 2022, Motilal Oswal Flexi Cap Fund Direct-Growth has assets under management (AUM) totalling $9,491 Crores, making it a medium-sized fund in its sector. The fund’s cost ratio, which is 0.93%, is greater than what most comparable Multi Cap funds charge.

The 1-year returns for Motilal Oswal Flexi Cap Fund Direct-Growth are -3.91%. It has generated returns of 16.74% on average every year since the start. Every seven years, the fund has quadrupled the amount invested in it.

• Mr Oswal Motilal The Flexi Cap Fund Direct-Growth plan has a lower return consistency than the majority of funds in its category. In a declining market, it has little power to limit losses.
• The financial, automotive, energy, consumer discretionary, and healthcare sectors are where the fund has the majority of its investments. Compared to other funds in the category, it has acquired less exposure in the financial and automotive industries.
• The top 5 holdings of the fund are Reliance Industries Ltd., Maruti Suzuki India Ltd., ICICI Bank Ltd., HDFC Bank Ltd., and TI Financial Holdings Ltd.

The right stock selection can help you create a well-diversified equity portfolio that will help you reach your financial objectives. This is due to the fact that multicap funds invest in equities with a wide range of market caps, allowing them to benefit from opportunities across contexts. Investing in our Motilal Oswal Multicap Fund may benefit from your stock portfolio’s growth potential. This is due to our firm belief in our distinctive investment strategy, “Buy Right: Sit Tight,” which calls for the purchase of high-quality equities with long lifespans and growth potential (QGLP).