Motilal Oswal Financial Services Limited is an India-based financial services company. It provides a wide range of services such as investment banking, wealth management, asset management, and stockbroking. The company is listed on the stock exchanges of the BSE and NSE.
Motilal Oswal Company Overview
Motilal Oswal is an Indian financial services company. In 1987, Motilal Oswal and Ramdeo Agarwal founded it. The company works with many banks like the State Bank of India, Punjab National Bank, and Axis Bank. The company offers services such as
- Equity trading
- Commodity trading
- Investment advisory services
- IPOs and SIPs investment
- Portfolio management services
- Mutual Fund investment.
| Industry | Financial Services |
| Founded | 1987 |
| Founders | Motilal Oswal and Ramdeo Agarwal |
| Current CEO | Motilal Oswal |
| Headquarters | Prabhadevi, Mumbai |
| Revenue (2023) | ₹4,178 crore |
| Profit (2023) | Standalone net profit of ₹56,891 lakhs |
| Market Cap (2024) | ₹43,690 crore |
| Employees | 7,303 |
Let’s take a look at the CEO in different sectors of the company-
| CEO | Motilal Oswal |
| Chairman | Ramdeo Agarwal |
| CEO of Investment Banking | Amit Ramchandani |
| CEO of Institutional Equities | Rajat Rajgarhia |
| CEO of Broking | Ajay Menon |
Motilal Oswal Mid-cap Fund
The Motilal Oswal Midcap Fund is an open-ended equity fund that primarily invests in mid-cap firms. The Motilal Oswal Midcap Fund Direct Growth is a noteworthy offering from the company’s mutual fund division. The fund had ₹23,704 crore in assets under management (AUM) as of February 2025. Its main objective is to leverage the development potential of startups by concentrating on mid-cap firms. With a total investment of only Rs 13.5 lakhs, your investment would have increased in value to about Rs 47 lakhs as of April 30, 2025, if you had invested Rs 10,000 per month in Motilal Oswal Midcap Fund under a Systematic Investment Plan. The Nifty Midcap 150 TRI is the fund’s benchmark scheme. The return on SIP is 20.8%.
| Launch Date | 2nd February, 2014 |
| Category | Mid-Cap Equity Fund |
| Benchmark | NIFTY Midcap 150 Total Return Index (TRI) |
| Expense Ratio | 1.58% (as of January 2025) |
| Assets Under Management | Rs. 2,448.8 crore (as of January 2025) |
Against the Benchmark
The Motilal Oswal Midcap Fund’s five-year rolling returns since the scheme’s launch are displayed in the chart below against its benchmark index. As you can see, the plan has produced alphas over five-year investment tenures and continuously exceeded its benchmark index following a period of underperformance.
Risks and Returns
The Sharpe Ratio measures the risk-adjusted returns of mutual fund schemes. Here is a comparison of the Sharpe Ratios of every midcap fund with at least three years of history. The blue-colored Motilal Oswal Midcap Fund has higher Sharpe Ratios than its peers.
Annualized Returns
| Period | Motilal Oswal Mid-cap fund | Nifty Mid-cap 150 TRI |
|---|---|---|
| 1 year | 16.33% | 2.72% |
| 3 year | 30.32% | 21.74% |
| 5 year | 27.20% | 25.44% |
| 10 years | 16.02% | 16.11% |
| Since inception | 21.99% | 17.08% |
Because of the market volatility sometimes linked to mid-sized businesses, the midcap group has a higher risk, even though it has a history of producing better returns. Nonetheless, this fund has a fantastic chance for wealth growth for investors with a long-term investing perspective and a strong tolerance for risk.
Performance Against Peers
The following chart compares the Motilal Oswal Midcap Fund’s five-year rolling returns (rolled daily) to the average for the midcap fund category since the scheme’s launch. The most objective way to assess a fund’s performance is to look at its rolling returns. As you can see, throughout five-year investment tenures in a variety of market circumstances (bull and bear), the Motilal Oswal Midcap Fund was able to continuously outperform the midcap funds category average.
Asset Allocation
As of April 30, 2025, the Motilal Midcap Fund’s asset allocation is heavily biased towards stocks, which account for 99.97% of the portfolio. The majority of the allocation,91.93%, is made up of mid-cap stocks with lesser shares in large caps (5.01%) and small caps (3.02%). Debt and other assets make up a comparatively tiny amount. Suzlon Energy (2.04%), Max Healthcare (2.49%), and BSE Ltd. (2.63%) are the top holdings. The fund’s sector allocation indicates a diversified mid-cap growth strategy with the fund’s primary investments being in Financials (16.2%), Healthcare (11.72%), Capital Goods (11.58%), and Services (9.79%)
Consistency
The Motilal Oswal Midcap Fund’s annual (calendar year) performance over the previous ten years is displayed in the chart below for both the midcap fund category and its benchmark index, the Nifty Midcap 150 TRI. As you can see, during the past ten years, the fund has been in the top two quartiles seven times, including six times in the top quartile. This demonstrates consistent performance and high outperformance. The fund has spent the last four years in a row in the top quartile.
Performance During Market Declines
The drawdowns of the Motilal Oswal Midcap Fund in comparison to the benchmark, Nifty Midcap 150 TRI, are displayed in the chart below. As you can see, as compared to the benchmark index, the fund saw comparatively fewer drawdowns.
Why Invest in Mid-Caps
With the Midcap 150 TRI down more than 20% from its 52-week high (as of the end of the previous quarter), the severe correction in the previous quarter pushed midcap companies into the bear market zone. A severe drop has softened values across various market cap groups to more acceptable levels, but it has also brought valuations to fair levels (see the figure below). Current valuations are still well below their high values, even if the market bounced back after the Trump Administration put a 90-day delay on proposed tariffs (see the chart below).
Reasons to Invest in Motilal Mid-caps
Motilal Oswal was created by pioneering early discovery and investing in midcaps and drawing on ten years of financial expertise. Approximately 35 well-selected and highly conviction midcap equities make up the portfolio. Motilal Oswal mid-caps help in utilising an investment strategy to invest in quality management. It is renowned for spotting topics with significant growth.
Who ought to put money into this fund?
The ideal investors for the Motilal Oswal Midcap Fund are those who:
- Possess a strong tolerance for risk and the ability to manage the volatility of mid-cap equities.
- Are prepared to remain invested for a minimum of five years and are seeking long-term capital growth.
- Desire to learn more about India’s expanding mid-cap firms that might rise to prominence in the future.
- For investors who want to take advantage of mid-cap firms’ growth potential and are prepared to withstand brief market swings in exchange for long-term rewards, this fund is perfect.
Meet the Fund Managers
A group of seasoned fund managers handles the fund:
Mr. Niket Shah
Mr. Niket Shah, a 38-year-old finance MBA holder, has been overseeing the equity component of several funds since July 1, 2020. He has 14 years of expertise and is in charge of several funds, such as the Motilal Oswal Flexi Cap Fund and the Motilal Oswal Large and Midcap Fund.
Mr. Rakesh Shetty
Mr. Rakesh Shetty, 43, has a Bachelor of Commerce and has been in charge of the debt components since November 22, 2022. He has been managing funds like the Motilal Oswal Liquid Fund and the Motilal Oswal UltraShort-Term Fund for more than 15 years.
Mr. Ankush Sood
The 27-year-old Mr. Ankush Sood, who has a B.Tech and an MBA in finance, has been handling international securities since November 11, 2022. He oversees products like the Motilal Oswal Nasdaq 100 ETF and the Motilal Oswal S&P 500 Index Fund and has expertise in institutional sales and trading.
FAQs
Ans. Motilal Oswal has been the CEO since its inception.
Ans. This equity mutual fund mostly makes investments in mid-sized businesses with significant room for expansion. It usually employs the “Buy Right, Sit Tight” approach and maintains a concentrated portfolio of 25–30 stocks.
Ans. Motilal Oswal was founded in 1987.
Ans. Motilal Oswal’s headquarters are in Prabhadevi, Mumbai
Ans. Mid-cap funds have moderate risk.
Disclaimer- All the information mentioned in the above blog is based on our understanding. It only has one purpose, which is to provide information to the readers. We do not take any responsibility for any action taken by any reader after reading our blog.
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