Motilal Oswal Midcap Fund: Investment Analysis

Understanding the Fund Strategy

Motilal Oswal Midcap Fund (MOF Midcap) is an equity mutual fund focusing on mid-cap companies ranked between 101-250 by market capitalization. The fund employs a growth investing approach, targeting companies with sustainable business models and strong earnings potential.

Recent Performance Metrics (as of July 2024)

Period	Returns (%)	Benchmark*
1 Year	32.6%	29.8%
3 Years (CAGR)	26.4%	24.1%
5 Years (CAGR)	21.8%	19.9%
*Nifty Midcap 150 TRI. Past performance not indicative of future results

Key Portfolio Characteristics

Assets Under Management: ₹12,450 crore (June 2024)
Expense Ratio: 0.34% (Direct Plan)
Portfolio Turnover: 15-20% (Low)
Top 5 Holdings:

Trent Ltd (4.2%)
Persistent Systems (3.9%)
Indian Hotels (3.7%)
ABB India (3.5%)
Samvardhana Motherson (3.3%)

Sector Allocation

Sector	Allocation
Consumer Goods	22%
Financial Services	18%
Industrials	15%
Technology	12%
Healthcare	10%

Risk Evaluation

Volatility: 15% higher than large-cap funds
Drawdown Risk: -18% in FY2023 market correction
Concentration Risk: 35% allocation to top 10 stocks
Market-Cap Risk: Midcaps more sensitive to economic cycles

Investment Parameters

Minimum Investment: ₹500 for SIP, ₹5,000 lump sum
Exit Load: 1% if redeemed within 365 days
STCG Tax: 15% (redeemed before 12 months)
LTCG Tax: 10% on gains above ₹1 lakh (redeemed after 12 months)

Peer Comparison

Fund	5-Yr CAGR	Expense Ratio
MO Midcap	21.8%	0.34%
Axis Midcap	20.1%	0.43%
Kotak Emerging Equity	19.6%	0.35%

Investor Suitability

Ideal For: Investors with 7+ year horizon
Risk Tolerance: Moderate to High
Investment Approach: Growth-oriented allocation
Monitoring Required: Quarterly portfolio review

Recent Portfolio Changes

Added: Bharat Electronics, Godrej Properties
Reduced: Voltas, Crompton Greaves
New Sectors: Renewable energy (5% allocation)

Fund Manager Outlook

"Our focus remains on companies with ROE exceeding 15%, debt-free balance sheets, and earnings visibility. The current portfolio emphasizes domestic consumption themes and manufacturing beneficiaries." - Siddharth Bothra, Fund Manager