Motilal Oswal Consumption

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1–7 yearsInvestment Horizon

HNI,MATarget Segments

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Motilal Oswal Consumption Fund Growth focuses on Indian consumer and retail companies for growth.

What This Strategy Does

Motilal Oswal Consumption Reg Gr is an equity fund which captures India's ₹50 trillion consumption opportunity through a portfolio focused on consumer cyclicals, technology, and healthcare, deploying capital to achieve broad-based earnings growth.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated resilient benchmark-relative behavior, outperforming in 1 out of the last 12 years, highlighting its ability to deliver consistent earnings and downside protection across market cycles.

Differentiated Positioning

The fund's distinct market-cap and sector positioning, with a tilt towards mid-cap and consumer cyclical stocks like Titan Company and Jubilant Foodworks, reflects a differentiated investment process and conviction in capturing India's consumption growth story.

Structural Growth Catalyst

With a valuation profile in line with historical norms, the fund is well-positioned to capitalize on India's favorable demographics and rising disposable incomes, key catalysts underpinning the secular consumption growth thesis, while managing risks from inflationary pressures and policy uncertainty.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Risk Profile

Maximum Drawdown-21.3% | Oct 2024

Upside Capture98%

Detailed Risks

Market Risk

Potential recession driven by high inflation could dampen consumer spending, impacting consumption-focused holdings.

Disclaimer: Products compared like fixed deposits may provide fixed guaranteed returns. Mutual Funds investments are subject to market risk, read all scheme related documents carefully before investing. Past performance is not an indicator of future returns.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Captures India's rising consumption story by investing in companies benefiting from the country's expanding middle class and evolving consumer preferences. This theme provides exposure to businesses positioned to capitalize on increasing disposable incomes and aspirational spending.

Broader Market View

Market Outlook

The global economy faces headwinds from elevated inflation and tightening monetary policies. However, opportunities exist in sectors benefiting from secular trends like digitalization and sustainability.

Why This Strategy is Attractive Now

This strategy aims to capitalize on long-term structural trends by investing in companies with robust business models and sustainable competitive advantages, potentially offering resilient returns amid market volatility.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, robust profitability, and consistent earnings growth across market cycles.

Why it Makes Sense

In the current environment of moderating economic growth and elevated valuations, a Quality Growth approach focused on market-leading franchises with pricing power and recurring revenue streams could offer a compelling risk-return profile.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of quality companies across market capitalizations and sectors, with a tilt towards secular growth areas. Selection: The selection process suggests a preference for businesses with sustainable competitive advantages, healthy balance sheets, robust free cash flow generation, and attractive reinvestment opportunities. Construction: Portfolio construction is consistent with a multi-cap core approach, maintaining a diversified set of high-conviction holdings with a long-term investment horizon and moderate turnover.

Portfolio Holdings Overview

SectoralAllocation

Energy & Infra3.38%

Services17.68%

Technology13.8%

Capital Goods11.5%

Consumers53.65%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Bharti Airtel LtdServices6.98%

Sky Gold and Diamonds LtdConsumers5.79%

Eternal LtdConsumers5.62%

Kalyan Jewellers India LtdConsumers5.50%

HealthCare Global Enterprises LtdServices5.27%

One97 Communications LtdTechnology5.21%

Mahindra & Mahindra LtdConsumers4.74%

Triparty RepoUtilities3.49%

SPR Auto Technologies LtdConsumers3.43%

Leap India LtdCapital Goods3.34%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Swapnil Mayekar

Lead Portfolio Manager

Mr. Swapnil Mayekar has experience of 22 years. Manages 227 funds at Motilal Oswal Asset Management Company Limited - Portfolio Managers with an AUM of approximately ₹9,582 Cr Holds a M.com degree.

Rakesh Shetty

Co-Portfolio Manager

Mr. Rakesh Shetty has experience of 4 years. Manages 287 funds at Motilal Oswal Asset Management Company Limited - Portfolio Managers with an AUM of approximately ₹10,161 Cr

CW Expert Take

Motilal Oswal's consumption strategy reflects their focus on domestic demand drivers. Their investment philosophy centers on identifying companies benefiting from India's rising income levels and evolving consumer preferences. The fund house maintains disciplined frameworks for analyzing business models and competitive advantages within the consumption basket. Their research capabilities span both consumer staples and discretionary segments, translating insights into concentrated equity portfolios.

44 years

Combined Team Experience

₹ 19,743 Cr

Assets Under Management

Firm Overview

AMCMotilal Oswal Asset Management Company Limited - Portfolio Managers

Investment Philosophy & Approach

Disciplined Approach

Motilal Oswal AMC follows a disciplined investment approach focused on quality growth.

Rigorous Research

The fund house emphasizes rigorous bottom-up research to identify sustainable growth opportunities.

Long-Term Perspective

Motilal Oswal AMC maintains a long-term investment perspective to capitalize on structural trends.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)2.46%

Regulatory & Tax Information

INF247L01GD6

ISIN

DailyDealing Frequency

BSE 500 India TR INRBenchmark

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)