Motilal Oswal Mutual Fund, one of the premier fund houses in the country, has seen some of its schemes topping the charts in their respective categories based on their last one-year returns. Its large-cap scheme — Motilal Oswal Large Cap Fund — has not only outperformed peers in its category but also emerged as a leader across all categories. This large-cap fund has delivered more than a 29% return in the last one year.
In addition to the large-cap fund, two other schemes — Motilal Oswal Small Cap Fund and Motilal Oswal Flexi Cap Fund — topped their respective categories. Both have generated over 20% returns each. This stellar performance by all three schemes comes at a time when the Indian equity markets have faced significant volatility over the last one year, restricting gains in benchmark indices like the Sensex and Nifty to around 11% each during this period.
What’s more, all three Motilal Oswal funds have not only beaten their respective category averages but have also outshone their benchmarks over the past year. Here’s how the category averages compare:
Large Cap Fund category average: 9.12%
Small Cap Fund category average: 6.74%
Flexi Cap Fund category average: 9.38%
Below is a comparison of the top-performing Motilal Oswal funds and their one-year returns against the benchmarks of their respective categories.
1. Motilal Oswal Large Cap Fund
1-year return: 29.12%
Benchmark: Nifty 100 TRI
Benchmark return in 1 year: 10.39%
2. Motilal Oswal Small Cap Fund
1-year return: 20.99%
Benchmark: Nifty Smallcap 250 TRI
Benchmark return in 1 year: 5.70%
3. Motilal Oswal Flexi Cap Fund
1-year return: 20.79%
Benchmark: Nifty 500 TRI
Benchmark return in 1 year: 9.93%
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Besides these three funds, there are two more Motilal Oswal offerings that have performed well in the past one year and came second in their respective categories. These funds are Motilal Oswal Midcap Fund and Motilal Oswal Large & Midcap Fund.
1. Motilal Oswal Midcap Fund
1-year return: 22.36%
Benchmark: Nifty Midcap 150 TRI
Benchmark return in 1 year: 10.63%
2. Motilal Oswal Large & Midcap Fund
1-year return: 18.44%
Benchmark: Nifty 100 TRI
Benchmark return in 1 year: 10.67%
(Source: AMFI, Value Research)
Barring Motilal Oswal Large Cap Fund, which is unrated, all other funds discussed above are top-rated schemes by Value Research. Motilal Oswal Flexi Cap Fund is rated 4-star and all other funds are five-star rated by Value Research.
What does a 5-star rating of a fund mean?
Now you must be wondering what does ‘top rated’ mean? These funds have been given a 5-star rating by a reputed platform like Value Research. This does not mean that these funds will give similar returns in future as well. However, it definitely shows that these funds have performed well so far, have managed the risk well and the fund manager’s strategy has been strong.
Ratings, especially for new investors, are a kind of indication of which funds are working with a better track record.
Do not invest just by looking at the past returns!
Many people look at the chart of the fund, find the returns good and immediately invest. But it is not necessary that the fund which is doing well today will do the same tomorrow. Market direction, policy changes, economic conditions – all these affect the performance of the fund.
So do not take a decision just by looking at the past returns. Do some research – what is the objective of the fund, in which companies has the money been invested, and what has been the strategy of the fund manager.
Keep these things in mind while investing in mutual funds
Mutual funds can be a great way to build wealth, but they are subject to market risks. Everyone has a different risk-taking ability. If you are investing for the first time, start with a SIP (Systematic Investment Plan) and think for the long term.
Don’t take too much risk in pursuit of returns – invest only as much as you can withstand the market fluctuations.
Summing up…
These top-rated funds from Motilal Oswal have performed well so far in the last one year, but don’t make any investment just by looking at the returns. Your financial needs, goals and risk profile matter the most. Remember – only investment made with wisdom and information gives real benefits in the long run.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.