Motilal Oswal Midcap mutual fund review: Better returns than its peers; should you invest?

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.

BASIC FACTS
DATE OF LAUNCH
24 FEBRUARY 2014
CATEGORY

EQUITY
TYPE
MID CAP
AUM*
Rs.4,508 crore
BENCHMARK
NIFTY MIDCAP 150
TOTAL RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.57.83
IDCW
Rs.30.17
MINIMUM INVESTMENT
Rs.500
MINIMUM SIP AMOUNT
Rs.500
EXPENSE RATIO* (%)
1.85

*AS ON 31 MAY 2023
**AS ON 20 JUNE 2023

FUND MANAGER
NIKET SHAH
5 YEARS, 3 MONTHS

Recent portfolio changes
New Entrants
Zomato (April)
Complete Exits
AU Small Finance Bank, Clean Science And Technology, Godrej Properties, Gujarat Gas, ICICI Bank, IDFC First Bank, Suven Pharmaceuticals (April). AIA Engineering, Kirloskar Oil Engines, The Indian Hotels Company (May).
Increasing allocation
Astral, Balkrishna Industries, Coforge, Deepak Nitrite, Globus Spirits, Mphasis, Persistent Systems, Vedant Fashions, Zomato (May).

Should you buy?
This fund adopts a differentiated approach to its mid-cap peers. It runs a highly compact portfolio of up to 30 high conviction stocks. It is comfortable taking outsized positions in its top bets. Its sector positioning is also far different from others and its own index. The preference is for businesses fitting its framework of quality, growth and longevity. It also shows a bias for momentum in its stock picks, which is reflected in a high portfolio turnover. This stance results in alternating bouts of sharp outperformance and underperformance. The fund has been riding a wave of outperformance for the past three years. More consistent showing will solidify its position as a worthy bet in its category.

(Source: Value Research)