Motilal Oswal Nifty Next 50 Index Gr

All Cap

Diversified

Equity

India Defensive

Others

Empty

1–7 yearsInvestment Horizon

Empty

What This Strategy Does

Motilal Oswal Nifty Next 50 Index Reg Gr is an India equity fund which captures the ₹20 trillion large-cap opportunity through index replication, deploying capital across industrials, financials, and consumer sectors to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Benchmark Tracking

The fund exhibits benchmark-relative behavior, delivering consistent performance across market cycles by closely tracking the Nifty Next 50 Index.

Sector-Neutral Exposure

The fund's investment process adheres to a sector-neutral approach, maintaining sector allocations aligned with the Nifty Next 50 Index, providing diversified exposure across industries.

Low-Cost Index Replication

As an index fund, the strategy offers a low-cost approach to replicating the performance of the Nifty Next 50 Index, potentially serving as a core portfolio holding for exposure to mid-cap Indian equities.

Performance and Risk Analysis

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

Fund Performance

0.0% AnnuallyAlpha

+13.5% vs +9.8% benchmarkSince Inception

+15.1% vs +5.7% benchmark3Y Annualized

+9.2% vs +4.7% benchmark5Y Annualized

Motilal Oswal Nifty Next 50 Index Gr

Benchmark Index

Benchmark Performance Comparison

Motilal Oswal Nifty Next 50 Index Fund

NIFTY 50

Given the product’s limited performance history, the assessment considers the fund house’s track record and the historical performance of comparable strategies managed by the same fund house, which follow similar investment approaches. Such comparisons provide historical context only and do not represent the performance of the new product or indicate its future returns.

Risk Profile

Standard Deviation22.8%

Maximum Drawdown-25.9% | Oct 2024

Sharpe Ratio-0.02

Detailed Risks

Market Risk

Prolonged economic slowdown in India could dampen consumer demand, impacting earnings of mid-cap companies.

Liquidity Risk

Elevated volatility in mid-cap stocks could strain liquidity, hindering efficient rebalancing.

Concentration Risk

Concentrated exposure to consumer discretionary sector poses risks from rising inflation.

Specific Strategy Risk

Regulatory changes impacting specific sectors could disproportionately impact fund performance.

Strategy Details

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

Core Investment Theme

Captures the growth potential of India's next generation of market leaders. By tracking the Nifty Next 50 Index, this fund provides exposure to companies poised to graduate into the Nifty 50 as their earnings and market capitalizations expand.

Broader Market View

Market Outlook

Equity markets appear to be entering a recovery phase following the recent correction, presenting an opportune entry point. Macro tailwinds such as consumption revival, earnings normalization, and capex growth are aligning with the strategy's tilt towards consumer, financial services, and technology sectors. While competitive pressures and cyclicality pose risks, the present backdrop seems conducive.

Why This Strategy is Attractive Now

The strategy's balanced exposure across consumer cyclicals, defensives, financials, and technology appears well-positioned. The portfolio's diversification across around 70 holdings, including market leaders, moderate beta, and flexibility to adapt could allow it to capitalize on the recovery. With its risk-adjusted approach, the strategy seems differentiated from benchmarks to potentially benefit from cyclical tailwinds.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations across a mix of large and mid-cap market segments.

Why it Makes Sense

This approach appears well-suited for an environment of moderating economic growth and elevated uncertainty, as quality businesses with pricing power and recurring revenue models may prove more resilient amid potential volatility.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas through a combination of quantitative screening for quality metrics like high returns on capital, stable cash flows, and attractive growth prospects, complemented by fundamental research into business models and competitive positioning. Selection: The selection process suggests an emphasis on companies with durable competitive advantages, proven management execution, and reasonable valuations relative to growth potential, favoring those positioned for long-term compounding. Construction: Portfolio construction appears aimed at balancing diversification across sectors and market capitalizations while allowing higher conviction in select holdings, with a focus on managing overall risk exposures.

Portfolio Holdings Overview

SectoralAllocation

Utilities11.97%

Financial Services19.84%

Energy & Infra7.69%

Services8.81%

Consumers26.59%

Capital Goods23.44%

Technology1.66%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Divi's Laboratories LtdServices4.84%

TVS Motor Co LtdConsumers3.95%

Hindustan Aeronautics Ltd Ordinary SharesCapital Goods3.63%

Tata Motors LtdConsumers3.61%

Adani Power LtdUtilities3.48%

Samvardhana Motherson International LtdConsumers2.96%

Torrent Pharmaceuticals LtdServices2.89%

Cholamandalam Investment and Finance Co LtdFinancial Services2.88%

Vedanta Aluminium Metal LtdCapital Goods2.87%

Cummins India LtdCapital Goods2.63%

Fund House Management

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

Fund Manager Track Record

Dishant Mehta

Lead Portfolio Manager

Dishant Mehta has experience of 2 years. Manages 101 funds at Motilal Oswal Asset Management Company Limited - Portfolio Managers with an AUM of approximately ₹9,582 Cr

Rakesh Shetty

Co-Portfolio Manager

Mr. Rakesh Shetty has experience of 4 years. Manages 297 funds at Motilal Oswal Asset Management Company Limited - Portfolio Managers with an AUM of approximately ₹10,161 Cr

Swapnil Mayekar

Co-Portfolio Manager

Mr. Swapnil Mayekar has experience of 22 years. Manages 237 funds at Motilal Oswal Asset Management Company Limited - Portfolio Managers with an AUM of approximately ₹9,582 Cr Holds a M.com degree.

CW Expert Take

Motilal Oswal's Nifty Next 50 Index fund offers exposure to the next rung of large-cap companies. Their passive strategy tracks the Nifty Next 50 Index, providing diversified equity participation beyond the Nifty 50 leaders. The fund maintains a disciplined approach to replicating the benchmark, offering investors a rules-based way to access this segment of the market.

28 years

Combined Team Experience

₹ 29,325 Cr

Assets Under Management

Firm Overview

AMCMotilal Oswal Asset Management Company Limited - Portfolio Managers

Investment Professionals49+

Global Offices250 Cities

Investment Philosophy & Approach

Disciplined Approach

Motilal Oswal AMC follows a disciplined, rules-based investment approach.

Systematic Execution

Portfolio construction adheres to systematic, quantitative models and processes.

Risk Management

Risk management is embedded through diversification and passive indexing.

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)1.15%

Regulatory & Tax Information

INF247L01AD9

ISIN

DailyDealing Frequency

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

STCG | <1Year 20%%

Tax Implications (India)