Motilal Oswal Focused 25 mutual fund review: Needs to prove credentials

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

How the fund has performed

Where the fund invests

Basic facts

• Date of launch: 13 May, 2013
• Category: Equity
• Type: Large cap
• AUM (As on 31 Oct, 2021): Rs 1,830 cr
• Benchmark: NIFTY 50 Total Return Index

What it costs
NAV (As on 9 Nov, 2021)

• Growth option: Rs 34.66
• IDCW: Rs 20.34
• Minimum Investment: Rs 500
• Minimum SIP amount: Rs 500
• Expense ratio (As on 30 Sep, 2021) (%): 2.20
• Exit load: 1% for redemption within 15 days

Fund Manager: Siddharth Bothra
Tenure: 5 years

Top 5 sectors in portfolio (%)

Top 5 stocks in portfolio (%)

Recent portfolio changes

• Complete Exits: Indian Railway Catering & Tourism Corporation.
• Increasing allocation: ABB India, Bajaj Auto, SBI Cards & Payments Services, Tata Consultancy Services, Zomato, Bajaj Auto. ICICI Lombard General Insurance Company, ABB India, Bajaj Auto.

How risky is it?

Source: Value Research

Should you buy?
This fund that takes a focused approach to stock selection, with a concentrated portfolio comprising not more than 25 stocks. Although a large-cap biased fund, its mid-cap presence is high compared to peers. Currently housing 20 stocks, the fund sports large positions in its top bets. The fund primarily targets long term compounders in the form of quality, growth oriented businesses for bulk of its portfolio. A smaller portion is deployed in aggressive bets on economy proxies that may be plays on recovery. In its short running history, the fund has exhibited alternating bouts of outperformance and underperformance, delivering modest alpha since inception. With its aggressive positioning, the fund needs to prove its credentials over longer time frames.