Motilal Oswal Mutual Fund was launched in 2008 and has managed AUM of approximately Rs. 19,640.11 crore at present (June, 2019). Motilal Oswal Asset Management Company Ltd. believes in ‘Buy Right, Sit Tight’ idea in order to invest in quality companies that are well-researched and analysed as well as stay focussed to keep a track of performance in order to book more returns.
Motilal Oswal Mutual Fund has performed consistently and given high returns through some schemes. Leading funds include Motilal Oswal Long Term Equity Direct Plan and Motilal Oswal Multi-Cap 35 Direct Plan.
Abhiroop Mukherjee, Siddharth Bothra, Akash Singhania and Niket Shah are the Vice President-cum-Fund Managers who manage different types of funds who believe in adequate diversification that enables benefits for the investors from the entire growth cycle but doesn’t dilute returns through over-diversification.
How to Complete Your Mutual Fund eKYC
KYC (Know Your Customer) is a one-time customer identification process and a mandatory compliance requirement for investors who wish to invest in mutual funds. It has been made compulsory by the capital markets regulator SEBI (Securities and Exchange Board of India) for mutual fund investments in order to curb fraudulent activities.
The KYC Process can be initiated and completed with any of the following SEBI-registered intermediaries:
- The Fund House (Asset Management Companies)
- KYC Registration Agency (KRA) such as CAMS, Karvy, CSDL (Central Depository Services Limited) Ventures, NSDL (National Securities Depository Limited) and NSE-owned (National Stock Exchange) DotEx International Limited
To complete your Mutual Fund eKYC online, follow these steps, and you’ll be good to go:
Step 1: Visit the website of a fund house or any of the above-mentioned KRA’s website and create an investor account by filling in your personal details and your Aadhaar-linked mobile number so that you can verify the account using that OTP.
Step 2: Upload self-attested copies of your Identity Proof and Address Proof.
That’s all. Your eKYC process is done!
Documents Required for Mutual Fund Investment
Here is a list of official documents required to validate the identity and address of an investor:
1. Identity Proof
- Aadhaar Card
- PAN Card
- Driving License
2. Address Proof
- Aadhar Card
- Driving License
- Recent Utility Bill
- Rental/Lease Agreement
How to Invest in Mutual Funds via Paisabazaar.com?
Step 1: Go to Paisabazaar.com
Step 2: Select the ‘Mutual Fund’ option.
Step 3: If you are a registered user, login onto the platform using your mobile number and password/OTP. Or create a new account.
Step 4: Choose ‘Invest’ > ‘Explore All Funds’ on the left side bar.
Step 5: Select the Motilal Oswal Mutual Fund of your choice. Now, all the details of the fund including NAV, risk level, etc. will appear.
Step 6: Enter the amount you wish to invest, select the investment type – SIP or Lumpsum, and click on the ‘Confirm & add to cart’ option.
Step 7: You can complete the payment using net banking of major Indian banks.
The mutual fund units will be allotted to you within 5 working days.
Motilal Oswal Equity Funds
A mutual fund which invests a minimum of 65% of its assets in shares/stocks is known as an equity fund. It can invest the balance 0-35% in debt or money market securities. You can read more about equity funds here.
Motilal Oswal Debt Funds
A mutual fund which predominantly invests i ecurities, certificate of deposit, etc is known as a debt fund. According to the Income Tax Act, a fund which invests below 65% of its total assets in equities is categorised as a debt fund. You can read more about debt funds here.
Motilal Oswal Hybrid Funds
A mutual fund which invests in two or more asset classes is called a hybrid fund. You can read more about hybrid funds here.
Motilal Oswal Long term Equity Fund is a relatively recent entrant in the ELSS category but has posted 3 year returns of over 14% as of 30th September 2018. This represents outperformance of the Nifty 500 TRI Benchmark returns of around 12% for the same period. This ELSS has high large cap exposure (around 72% of total assets) with additional mid cap and small cap equity allocation of 24% and 2% of assets respectively as of 30th September 2018. The debt, cash and cash equivalent holdings of this tax saver fund is around 2.5% of total assets which may limit the scheme’s ability to benefit from reasonable equity valuations following a market correction. With respect to sector specific investments, financial equities including banking stocks make up almost 40% of scheme assets followed by software (18% of total assets) and automotive (11% of total assets) as of 30th September 2018. Top 3 individual equity investments of this ELSS as of 30th September 2018 were Infosys (approx. 9% of assets), HDFC Bank (approx. 9% of assets) and HDFC (approx. 8% of assets).
The high exposure of this ELSS to the financial segment has been a key driver for its growth till date but in recent months this sector has witnessed correction which has led to this scheme posting lackluster 1 year returns of around -1.6% as compared to benchmark returns of around 7% for the same period. That said, the financial sector as a whole has started showing initial signs of recovery and further growth in the segment will definitely be a positive for this scheme. Motilal Oswal Long Term Equity Fund is thus recommended for investors who are risk tolerant and bullish on the domestic financial sector.
Frequently Asked Questions
Q. What is an Asset Management Company (AMC)?
A. AMC is an organisation which manages the pooled funds from numerous investors and invests them in various financial securities to generate returns.
Q. What is Net Asset Value (NAV)?
A. Net Asset Value measures the performance of an individual mutual fund scheme of an AMC. In essence, it is the market valuation of the securities the fund has invested in. So, the NAV per unit is derived from dividing the total market value of all the invested securities by total number of units issued. Since, the number of unit holders and valuation of securities change everyday, the NAV of a mutual fund also changes accordingly.
Q. What is Expense Ratio?
A. Expense Ratio refers to a small amount of fee charged by Asset Management Companies annually to manage investors’ assets. It covers the operating and managing cost incurred by the AMC. It is a percentage of the total assets invested by the investor.
Q. What is Entry Load?
A. When an investor purchases units of a mutual fund scheme for the first time, s/he is charged a small amount of processing fee by the Asset Management Company which is known as an Entry Load.
Q. What is Exit Load?
A. When investors redeem their investment from a mutual fund scheme, s/he is charged a small amount of processing fee which is known as an Exit Load. It is also charged when investors choose to switch between different mutual fund schemes of a specific AMC.