Top 4 Mutual funds from Motilal Oswal – Buy Right Sit Tight – Should you invest?

Top 4 Mutual funds from Motilal Oswal - Buy Right Sit Tight - Should you invest-minTop 4 Mutual funds from Motilal Oswal – Buy Right Sit Tight


We are seeing lot of advertisements about Motilal Oswal Buy Right – Sit Tight Mutual fund schemes. Motilal Oswal AMC has launched mutual fund scheme in 2013 i.e. just 3.5 years back. It gradually added various mutual fund schemes. Currently it has top 4 mutual fund schemes which it indicates that these are for long term and one should hold them to get good returns. Should you invest in these Buy Right sit Tight Motilal Oswal Mutual Fund Schemes? How these Top 4 Mutual Funds are performing now in the last 1-4 years? Should you invest in such mutual fund schemes which have short term history of 2-4 years?

Also Read: Best Liquid Mutual Funds to invest for your idle money

What is Motilal Oswal – Buy Right Sit Tight Concept is all about?


Motilal Oswal launched its mutual fund schemes in 2013. It believes in QGLP Concept i.e. Quality, Growth, Longetivity and Price. Motilal Oswal MF says that investors should “Buy Right and Sit Tight” and ignore short term stress and focus on long term to get good gains. Currently it has 4 Mutual Fund Schemes which it says are top performing funds with this concept.

Top 4 Mutual funds from Motilal Oswal – Buy Right Sit Tight – Should you invest?


Top#1 – MOSt Focused Midcap 30


MOSt focussed midcap fund - Top 4 Mutual funds from Motilal Oswal - Buy Right Sit Tight-min

Overview: The scheme aims to generate long term capital appreciation by investing in a maximum of 30 quality mid cap companies having long-term competitive advantages and potential for growth.

Performance: This fund was launched on 24-Feb-2014, means this is just 3 years old scheme. This mutual fund scheme gave 27% returns in last 1 year and 32% returns since its launch. Its benchmark NIFTY free float midcap 100 gave 38% returns in last 1 years compared to this scheme of 27% which indicates underperformance of the scheme.

Should you invest: This is 3 years old MF scheme. This fund claims that it performed well since launch, however it is underperformer compared to its benchmark. If you would have invested Rs 1,000 per month through SIP for 3 years, your investment would have been Rs 36,000 and your investment value would have grown to Rs 47,000 if you have invested in this scheme. There are better funds like HDFC midcap opps fund, Mirae Emerging Blue Chip funds which are performing well and are consistent performers in long run. You should avoid this fund.

Top#2 – MOSt Focused Multicap 35


MOSt focussed multicap 35 fund - Top 4 Mutual funds from Motilal Oswal - Buy Right Sit Tight-min

Overview: The Scheme objective is looking for long term capital appreciation by primarily investing in a maximum of 35 equity & equity related instruments across sectors and market-capitalization levels.

Performance: This fund was launched on 28-Apr-2014, means this has not completed 3 years. This mutual fund scheme gave 39% returns in last 1 year and 31% returns since its launch. Its benchmark NIFTY 500 gave 28% returns in last 1 years compared to this scheme of 39% indicating strong performance.

Should you invest: This is less than 3 years old scheme. It invests in diversified portfolio. Its performance is good compared to its benchmark. If you would have invested Rs 1,000 per month through SIP for 3 years, your investment would have been Rs  36,000 and your investment value would have grown to Rs 45,000 if you have invested in this scheme. Its peers like Kotak Select Focus is in par with this fund, however in longterm, you should invest in consistent performers. You can make a try in this mutual fund scheme.

Top#3 – MOSt Focused 25 Fund


MOSt focussed 25 fund - Top 4 Mutual funds from Motilal Oswal - Buy Right Sit Tight-min

Overview: The Scheme seeks to achieve long term capital appreciation by investing in upto 25 companies with long term sustainable competitive advantage and growth potential.

Performance: This fund was launched on May-2014, means it completed 3.5 years. This mutual fund scheme gave 27% returns in last 1 year and 17% returns since its launch. Its benchmark NIFTY 50 gave 11% returns in last 1 years compared to this scheme of 27%. Majority of the returns came in last 4-5 months post demonetization.

Should you invest: This is 3.5 years old scheme. This fund gave 17% returns since its launch. Performance is good in the last 1-3 years. If you would have invested Rs 1,000 per month through SIP for 3 years, your investment would have been Rs  36,000 and your investment value would have grown to Rs 44,000 if you have invested in this scheme. One can consider investing in such scheme if you wish to take risk and invest in new schemes that are less than 5 years old.

Also Read: Which are the Top Performing Multicap Mutual Funds to invest?

Top#4 – MOSt Focused Long Term Fund


MOSt focussed Long Term fund - Top 4 Mutual funds from Motilal Oswal-min

Overview: The Scheme seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments.

Performance: This fund was launched on 15-Jan-15, means it completed 2 years. This mutual fund scheme gave 42% returns in last 1 year and 28% returns since its launch. Its benchmark NIFTY 500 gave 28% returns in last 1 years compared to this scheme of 42% indicating very strong performance.

Should you invest: This is just 2 years old MF scheme. This fund gave 18% returns since its launch. Performance is good in the last 1-2 years. If you would have invested Rs 1,000 per month through SIP for 2 years and 1 month, your investment would have been Rs 25,000 and your investment value would have grown to Rs 31,000 if you have invested in this scheme. It has short history, however one can consider investing in such scheme if you wish to take some risk.

Also Read: Best Tax Saving ELSS Mutual Funds 2017

Summary of these Top 4 Mutual Funds of Motilal Oswal


List of Top 4 Mutual funds from Motilal Oswal - Buy Right Sit Tight-min

Disclaimer: This article is not to recommend or criticize about any mutual fund scheme. Since the concept is attracting investors, we are highlighting the fund performance and our view about these funds. Investors should review these points and take their own decisions.

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Suresh

Top 4 Mutual funds from Motilal Oswal – Buy Right Sit Tight

6 comments

  • Prashant

    Hello sir/madam,

    I wants to start sip for short term and long term too. Plz provide me guidance. I am new to SIP. how and where to start. I live in far flang area where no such facilities available.

    • first open MF account with any broker like icicidirect or fundsindia. Start investing in large cap funds (say 2-3 funds) through SIP every month. Check our top 10 mutual funds article and pickup large cap funds

  • jrc

    Hello Sureshji,

     

    many thanks for for such good MF articles and comparative analysis.

     

    i am holding midcap n multi cap funds.

     

    motilal n NJ also have schemes like mars which invest in equity n debt MF based on current market conditions 

    if you get chance to look at the mars scheme, please review it. I would highly interested 

    thanks

    jrc

     

     

  • Harsh Patel

    Thanks you sirji

  • b.k.vaghela

    sir,

    u r very correct. one should see/observe so many points before selecting the scheme. mere advertisement is not important. perfomance is main thing to consider.

    -b k vaghela

  • Yogesh

    Good Analysis.They are advertising too much.

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