Mutual funds are one of the safest and easiest ways for the investors to grow their wealth.
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What Is A Mutual Fund And How Does It Work
Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities, managed by professional fund managers. These expert money managers research the market and invest on your behalf to generate better returns on the investment.
For Example, Motilal Oswal Midcap Mutual Fund has about ₹7,410 Crore AUM (Assets Under Management). This is the amount invested by multiple investors in this mutual fund. The fund manager invests this pooled amount into various stocks, bonds etc., after thorough research.
Mutual fund industry is regulated by the Securities and Exchange Board of India (SEBI). SEBI establishes & enforces rules and regulations to safeguard the interests of investors.
How To Benefit From A Mutual Fund
When you are investing in a Mutual Fund, you are essentially buying its NAV (Net Asset Value). You can learn more about NAV clicking the link below. 👇👇👇
Once Mutual Fund received money, it will be invested into stocks, bonds etc., When NAV of the Mutual Fund increases, your investment valve increases.
What Is A Midcap Mutual Fund
Market capitalization is calculated by multiplying the current stock price by the total number of outstanding shares.
Largecap companies have a high market capitalization, typically more than ₹20000 Crore. Midcap stocks usually fall in the range of ₹5000 to ₹20000 Crore market cap. Stocks with market cap below ₹5000 Crore can be treated as smallcap stocks.
Midcap stocks are those stocks that have evolved in business cycles over a period of time and grown from smallcap category to midcap category. As the business grows further, the midcaps would become largecaps. Midcap stocks are characterized by strong growth and volatility (fluctuations in stock price).
A Midcap Mutual Fund invests primarily in midcap stocks. Staying invested for a longer time in Midcap stocks or Mutual funds, is sure to provide better returns over the investment.
Why Motilal Oswal Midcap Mutual Fund
About The Fund
Motilal Oswal is a reputed name in the Mutual Fund Industry and is backed by veteran Investor Mr. Ramdeo Agarwal. Their In-house grown QGLP (Quality, Growth, Longevity, Reasonable Price) model for stock selection, is proven to be generating alpha returns.
The investment objective of the Scheme is to achieve long-term capital appreciation by investing in quality mid-cap companies having long-term competitive advantages and potential for growth.
Details of Motilal Oswal Midcap Mutual Fund:
| Parameter | Value |
|---|---|
| AUM | ₹7410 Crore |
| Total Expense Ratio (TER) | 0.65% |
| No. of Stocks | Not more than 30 Nos |
| Current NAV (₹) | 83.05 As on 04.02.2024 |
| Entry load | Nil |
| Exit load | 1% – If redeemed on or before 15 days from the date of allotment. Nil – If redeemed after 15 days from the date of allotment. Exit load is the fees charged by AMCs for premature redemption of mutual funds units. |
| Minimum Investment | ₹500 |
| Lock-in period | Not applicable |
| Fund Manager | Mr. Niket Shah |
Have a look at the following web stories on Mutual Funds:
Sector Allocations and Past Returns
Top 5 sectors that the Motilal Oswal Midcap Mutual Fund invests in:
| Sector | %Allocation |
|---|---|
| Information Technology | 17.92% |
| Finance & Investments | 14.37% |
| Consumer Discretionary | 14.18% |
| Industrials | 10.16% |
| Materials | 9.93% |
List of companies Motilal Oswal Midcap Mutual Fund invested in (>6% allocation):
| Company | %Allocation |
|---|---|
| Persistent Systems Limited | 9.57% |
| Jio Financial Services Limited | 9.27% |
| Zomato Limited | 8.35% |
| Tube Investments of India Limited | 7.23% |
| Coforge Limited | 6.77% |
| Prestige Estates Projects Limited | 6.76% |
| CG Power and Industrial Solutions Limited | 6.13% |
| Deepak Nitrite Limited | 6.08% |
The Fund delivered 35.57% CAGR returns over a period of 3 years.
One lakh invested in this fund 3 years ago, would have more than doubled to become 2.5 Lakhs.
However, Fund performance depends on market conditions and on the performance of the stocks that the Mutual fund invested in. Therefore, past fund performance may or may not repeat in the future years.
You can calculate mutual returns using the calculator below:
Mutual Fund Calculator
How To Invest In Motilal Oswal Midcap Mutual Fund
(i) Open an account with Zerodha using the link below.
Click on the picture below to Open Demat account with Zerodha
(ii) Download “COIN” App and login with Zerodha login credentials.
(iii) Under “Discover” section, search for Motilal Oswal Midcap Fund and start investing.
(iv) Investment can be done either in lumpsum method (desired full amount at a time) OR through monthly SIPs (Systematic Investment Plans)
(v) Hold the investment for a minimum period of 3 years.
Disclaimer:
The above content provided regarding Motilal Oswal Midcap Mutual Fund, in this web post is for informational purposes only and should not be construed as financial advice. Readers are encouraged to consult with financial professionals before making any significant financial decisions.
