The funds belonging to multi-cap category have a diversified portfolio which invests in companies across market capitalisation. Unlike, other category funds, these funds are market capitalization agonistic. Funds from the large, small, and multi-cap category have a restricted mandate and are forced to stick to the businesses that are characterize by their market capitalization. Multi-cap funds are able to take the benefit of both the worlds, i.e., growth and value investing style because they have a large investment scope. One scheme that has been performing well in the multi-cap space is Motilal Oswal Multicap 35 Fund which was earlier known as Motilal Oswal MOSt Focused Multicap 35 Fund.
This is an open-ended scheme with a sector diversified portfolio which invests in equity and equity related securities of large, mid, and small-cap companies. The fund invests in a maximum of 35 stocks spread across the market spectrum.
Who Should Buy?
MySIPonline suggests that those investors who are looking for achieving capital growth in a long-term and want to invest in a mix of stocks belonging to different sectors can invest in this fund. Also, it must be noted that one must be ready to deal with moderately high risk. Investors must have medium to long investment horizon to cherish the gains from the investments in this fund.
Motilal Oswal Multicap 35 Fund G- Details
The scheme was launched on April 28, 2014 and has NIFTY 500 as its benchmark to keep a measure of its performance. It has successfully proffered 28.71% returns since its launch. Minimum investment in SIP is Rs.1000 and in lump sum mode is Rs.5000. Presently, the fund has a mix of 26 stocks in the portfolio out of which top 10 stocks account for the 55.96% of the portfolio composition. Contrary to its benchmark’s investment behavior, the fund is overweight in the sectors such as financial, automobile, energy, healthcare, etc. Top stock holdings consist of HDFC, Maruti Suzuki India, HDFC Bank, IndusInd Bank, etc. Average market capitalization amounts to Rs.73,643 with 52.16%, 25.27%, 20.8.%, and 1.78% investment in giant, large, mid, and small-cap businesses.
Performance of the Fund
Because the fund is a late comer in the industry, it has not seen the major market crash or market high. Its past three year annual returns can be used to see how it is keeping up with the market and its walk on the growth trajectory. It has continuously outperformed its benchmark in all the three years by proffering 14.6%, 8.45% ,and 43.05% returns in 2015, 2016, and 2017.
Why Should You Invest in This Fund?
The fund has been awarded a five-star rating by Value Research because of its outstanding performance and its ability to deliver benchmark-beating returns consistently. Just like all the other funds of Motilal Oswal Mutual Fund, it also follows QGLP approach, i.e., Quality, Growth, Longevity and Price in order to pick a stock. It is being managed by ace fund manager Mr. Gautam Sinha Roy since its inception. Mr. Roy has no problem in making the portfolio a little concentrated in some sectors if the economic growth favors.
Picking this player from the multi-cap space will be beneficial as it will allow you to cherish sector diversification and gain risk-adjusted returns.
To invest in Motilal Oswal Multicap 35 Fund, visit MySIPonline, register yourself on the web portal, and complete your profile. If you require assistance while making investment, you can talk to our experts and know more about the fund in detail.
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