Equity mutual funds invest in large cap, mid cap, small cap and global companies based on the investment objective of the fund. The large cap component of the fund gives stable returns while the other categories can generate high returns but involve high risks. Did you know that this equity mutual fund has generated positive returns every month for the past 12 months. It is also one of the most consistently performing mutual funds for the past decade. In this article, Motilal Oswal FlexiCap Fundits portfolio, its performance, a comparison to benchmark returns and our view on the fund.
Earlier we Top 20 stock mutual funds that have generated positive returns every year for the past 10 years. Continuing this trend, in this article we will focus on mutual funds that have generated positive returns every month over the past 12 months.
How did you filter this equity fund?
- We have considered all equity mutual funds in India, excluding sector funds and thematic funds.
- We filtered for funds that have generated positive returns every month over the past 12 months (June 2023 to May 2024).
- We were able to get hold of only one fund – Motilal Oswal Flexi Cap Fund – which has been generating positive returns every month (irrespective of value) for the last 12 months.
About Motilal Oswal FlexiCap Fund
The scheme aims to achieve long-term capital appreciation by investing primarily in equity and equity related instruments across various sectors and market capitalisation levels.
In simple terms, the fund will invest in large, mid and small cap stocks.
Motilal Oswal FlexiCap Fund – Portfolio
The fund is currently 96% invested in equities and the rest in other financial instruments.
The company’s top 10 stock portfolio comprises Jio Financial Services, Persistent Systems, Tube Investments, Polycab, Zomato, Kalyan Jewellers, Coforge, Indus Towers, Cholamandalam Investments and Finance and Bharti Airtel.
As part of its other investment category, the firm currently invests in Treasury Bill Repurchase Securities (TREPS).
Motilal Oswal FlexiCap Fund – Performance Details
Below is a breakdown of performance over the past 10 years, and it pertains to direct plans.
#1 – Monthly Revenue for the Last 12 Months
| Month | Return value |
|---|---|
| June 23 | 3.8% |
| July 23 | 2.6% |
| August 23 | 4.7% |
| September 23 | 1.0% |
| October 23 | 0.1% |
| November 23 | 6.7% |
| December 23 | 5.6% |
| January 24th | 3.1% |
| February 24th | 3.7% |
| March 24th | 2.8% |
| April 24th | 4.2% |
| May 24 | 0.2% |
#2 – Absolute Fund Return
- 1-year return: 39.8%
- 2-year return: 57.3%
- 3-year return: 47.6%
- Five-year return: 80%
- Return over 10 years: 400% (from Rs 100,000 to Rs 500,000)
#3 – Annual return of the fund
- 1-year return: 39.8%
- 2-year annualized return: 25.3%
- 3-year annualized return: 13.8%
- Five-year annualized return: 12.5%
- 10-year annualized return: 15.9%
#4 – SIP Fund Returns
- 1 year: 32.8%
- 2 years: 29.8%
- 3 years: 21.1%
- 5 years: 17.8%
- 10 years: 13.5%
#5 – A lump sum investment of Rs.
- 1 year: 140,000 rupees
- 2 years: 1.57 million rupees
- 3 years: 1.47 million rupees
- 5 years: 18 lakhs
- 10 years: 400,000 rupees
#6 – 10K SIP Investment
- 1 year: 1.2 Lakhs invested, now worth 1.40 Lakhs
- Year 2: Invested Rs 24 lakh, now worth Rs 3.18 lakh
- Year 3: 36 lakhs invested, now worth 49 lakhs
- 5 years: You invested Rs 6 lakh and today it is worth Rs 93.7 lakh.
- 10 years: 12 lakhs invested, now worth 2.43 lakhs
#7 – Rolling Return Perspective:
3-Year Rolling Returns:
- 20%+ return – 1% probability
- 15% to 20% return – 29% probability
- 12% to 15% return – 26% probability
- 0% to 12% return – 44% probability
- Negative return – zero times
Five-year rolling returns:
- 20% or more return – 0 times
- 15% to 20% return – 12% probability
- 12% to 15% return – 34% probability
- 0% to 12% return – 56% probability
- Negative return – zero times
How has Motilal Oswal Flexi Cap Fund performed compared to its benchmark?
One of the best ways to check how a fund is performing is to look at its benchmark, and the benchmark is the Nifty 500 TRI.
Annualized return over 5 years
- Nifty 500 TRI – 17.8% (May 31, 2024)
- Motilal Oswal FlexiCap Fund – 14.4%
Past year return
- Nifty 500 TRI – 35.1% (May 31, 2024)
- Motilal Oswal FlexiCap Fund – 57.6%
Conclusion and our take:
- It is a flexi-cap fund that invests 96% in equities and the remaining in other financial instruments.
- The stock mix is 17% large caps, 7% mid caps, 19% small caps and the rest are other stocks.As I have said in my previous article, if you want high returns you need to take risk. 7 high-yield mutual funds to invest in in 2024 Here I have listed the name of the fund.
- The fund’s beta is 0.94. It is a measure of the fund’s sensitivity to market movements. A beta less than 1 indicates that the fund’s fluctuations are smaller compared to the rise and fall of the benchmark. A beta greater than 1 indicates that the fund’s fluctuations are larger compared to the benchmark.
- The alpha is 0.43, which is a measure of the additional return the fund provides compared to the benchmark. Investors should prefer high alpha funds that can generate higher returns.
- You can invest in this fund as a lump sum investment of Rs 500 or SIP for 12 months starting from Rs 500. There is no lock-in period, but the fund has an exit load of 1% if you redeem within 15 days from the date of investment.
- The fund size, AUM, is 10,021 crore.
- The fund has generated 17% annualized returns since inception, outperforming the benchmark Nifty500 in the past year but underperforming in the past five years.
- check The 12 worst performing mutual funds over the past three years.
- The large cap component of this fund gives stable returns while the mid and small cap components are riskier and at the same time generate high returns. There are better funds in this flexi-cap category but high risk investors who are willing to invest for more than 5 years can invest in this fund. Low or medium risk investors should avoid such funds.
Suresh KP is the Founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and NISM Certified Research Analyst. He has been involved in analyzing financial markets for the last 20 years. He can be reached at suresh@myinvestmentideas.com.
