Motilal Oswal Long Term Equity mutual fund review: Has exhibited bouts of sharp outperformance

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: 21 Jan, 2015
Category: Equity

Type: ELSS
AUM (As on 31 July 2021): Rs 2,280 crore
Benchmark: Nifty 500 Total Return Index

What it costs
NAV (As on 7 Sep, 2021)
Growth option: Rs 27.36
IDCW: Rs 21.49
Minimum Investment: Rs 500
Minimum SIP Amount: Rs 500
Expense ratio (As on 31 July 2021) (%): 2.06
Exit load: NA

Fund manager: Aditya Khemani
Tenure: 1 year, 11 months

Top 5 sectors in portfolio (%)

Top 5 stocks in portfolio (%)

Recent portfolio changes
New Entrants: Zomato
Complete Exits: Muthoot Finance, Maruti Suzuki India
Increasing allocation: State Bank of India, Max Healthcare Institute, Dalmia Bharat, Torrent Pharmaceuticals, Cholamandalam Investment & Finance Company, State Bank of India

How risky is it?

Source: Value Research

Should you buy?
This tax-saving fund takes a flexi cap approach but retains a slight tilt towards large-caps, like many of its peers. However, it prefers to maintain sizeable mid-cap presence over small-caps in the rest of the portfolio. The fund manager runs a very compact portfolio with no more than 30 high conviction bets. The portfolio construct is highly index agnostic even in sector positioning. The fund manager prefers high quality, strong cash flow generating companies with long growth runway. The fund does not have a long track record, but in slightly over five years it has exhibited bouts of sharp outperformance interspersed with occasional underperformance. Its aggressive stance lends for higher volatility compared to peers in its category.