Motilal large and midcap fund
this fund is superior returns and super downward protection
i invested this - i will take for long term to next generation
any review
your review
The fund manager played very well in ups and down
1 Like
Can you elaborate specifically what suggests this about the fund ?
Hi @cvs Let me summarise the fund for you.
The Motilal Oswal Large and Midcap Fund is an equity mutual fund that primarily invests in large and mid-cap stocks, aiming for medium to long-term capital appreciation.
Key Details:
Launch Date: October 17, 2019.
Fund Size: Approximately â‚ą9,001 crore as of December 31, 2024.
Expense Ratio: 1.73% for the Regular Plan.
Risk Profile: Very High.
Performance:
1-Year Return: 29.31%.
Since Inception: 26.06% average annual returns.
Portfolio Allocation: The latest can be found on the website.
Sector Allocation: Capital Goods, Services, Consumer Discretionary, Financial, and Energy sectors.
Suitability:
This fund is suitable for investors seeking high returns over a medium to long-term horizon and who are comfortable with a very high-risk profile. A minimum investment of â‚ą500 is required, with a minimum SIP investment of â‚ą500.
Tax Implications:
Short-Term Capital Gains (STCG): 15% tax if units are redeemed within 1 year.
Long-Term Capital Gains (LTCG): Exempt up to â‚ą1 lakh; gains above this are taxed at 10%.
Dividend Income: Taxed according to the investor’s tax slab; TDS of 10% applies if dividend income exceeds ₹5,000 in a financial year.
Conclusion:
The Motilal Oswal Large and Midcap Fund has demonstrated strong performance since its inception, making it a compelling option for investors with a high-risk tolerance seeking substantial returns over the medium to long term.
The OP might be influenced by the current portfolio holdings, future outlook and historical returns. Even I was looking into it recently.
i still do not get how we go from any of these statistics to “super downward protection”.
For example,
if there was a chart comparing over the same time period
- the drawdowns of this fund
- and the drawdowns of the benchmark LargeCap and Midcap indices,
that might have been a justification for this claim of “downward protection”.
I don’t see that above or in the source page.
What else is involved in this “downward protection” ?
How to arrive at that conclusion from these stats? 
To evaluate the claim of “downward protection” and justify it using available statistics or charts, consider the following points for evaluation:
Understanding “Downward Protection”
Basically means a fund’s ability to minimize losses during market downturns compared to its benchmark indices.
Key Metrics:
Drawdowns: The maximum percentage loss from a peak to a trough over a specific period.
Volatility: Lower volatility often indicates better control over downward movements.
Beta: A measure of the fund’s sensitivity to market movements (Beta < 1 suggests lower sensitivity).
Analyzing the Claim
- Comparison with Benchmarks:
Drawdown Chart: A chart comparing the fund’s drawdowns with those of benchmark LargeCap and MidCap indices during the same periods would illustrate whether the fund consistently experienced smaller declines.
-
Historical Performance: Review data from significant market downturns (e.g., bear markets or corrections) to identify patterns of outperformance.
-
Quantitative Evidence: Statistics like maximum drawdown, downside deviation, or Sharpe ratio could support the claim.
Check calendar-year returns or rolling-period returns to assess if the fund had better downside performance compared to benchmarks during turbulent times.
What Else is Involved in Downward Protection?
Asset Allocation: The fund’s allocation to defensive assets (e.g., bonds, cash) or sectors may contribute to resilience.
Risk Management Strategies: Active management such as selling losers to limit losses during declines.
Quality of Holdings: Investments in low-beta or high-quality companies can cushion downturns.
How to Arrive at This Conclusion
-
Drawdown Comparison: Plotting a chart showing the drawdowns of the fund and benchmarks over the same period. Smaller drawdowns for the fund support the claim.
-
Beta and Correlation Analysis: the fund’s beta and correlation to benchmark indices. A lower beta supports “downward protection.”
-
Volatility Analysis: Calculate downside deviation and compare it with benchmarks to highlight reduced risk.
-
Scenario Analysis: Examine specific market downturns (e.g., 2008 crisis, COVID-19 crash) to see if the fund outperformed benchmarks during these periods.
The claim of “downward protection” could be justified through a comparative analysis of drawdowns between the fund and its benchmarks. However, this is not evident in the provided data or source page. To substantiate this claim, I recommend presenting a chart comparing the drawdowns of the fund and benchmarks (LargeCap and MidCap indices) over the same period.
Additionally, including metrics such as beta, downside deviation, and performance during major downturns would strengthen the argument. Other contributing factors to downward protection might include the fund’s asset allocation, risk management strategies, and investment in high-quality or defensive holdings.
Without such comparisons or data, it is challenging to conclusively attribute “downward protection” to the fund’s performance.
1 Like