Investment Product Guide August 2018 | Issue...

August 2018 | Issue 28

Investment Product Guide

MOFSL- Overview

Market Update

Product Update

A strengthened global economy is giving central banks’ opportunity to withdraw stimulus. Following the Fed, the ECB has

indicated its intent to end its bond-buying program. This indicates the end of easy money era and this clearly reflects as

consequences in the emerging market. Higher interest rates means liquidity flowing out of the emerging market to be

parked back at home and this is reflecting currently. As an effect of these global developments, most emerging market

currencies have taken a hit and the rupee hit the all-time low of 69 on 19th July 2018. Meanwhile, a trade war playing out

between US & China is keeping everyone on their toes.

In line with the global economy, India’s economy continues to remain robust. The same evident various high frequency

data points. The country’s latest GDP number & composite PMI no., infrastructure growth jumped 7 months high are

testament to this. We believe that pick up in corporate profitability is the next immediate progression of this increased

economic activity. All this while earnings have been mirage, this time it is finally started reflecting in the reality. There is

confidence to be gained in the widespread nature of the same. Instead of few sectors pulling the weight, we have

witnessed a recovery across the spectrum. The building blocks of a domestic economic recovery seem to be falling in

place. This appears to be led by both structural and cyclical factors.

Our newly launched strategy “Renaissance India Next AIF” aims to capture growth through companies and sector which

have been head winded in the past but will see good uptick in the coming years. We continue to advise a staggered

approach to investing in equities with a view to commit more during any sharp correction.

In the fixed income space, we continue to recommend low maturity high accrual portfolios as they are provide strong

visibility of returns.

Risk reward continues to favour multi cap strategies

MOFSL- Overview

o Group Profile & Structure

o Business Evolution

o Business Update

Group Profile and Structure

Affordable Housing Loan Families

Retail Broking and Distribution Clients

Institutions

AMC Distributors

Corporates

638+

100+

48,000+

870,000+

2,300+

● Well-diversified, financial services company offering a range of financial products and services

● Focused on wealth creation for all its customers, such as institutional clients, HNWIs and retail customers

● Network spread over 500+ cities comprising 2200+ business locations operated by our business partners

and us with 1 Million+ total registered customers

● Shares listed on the Bombay Stock Exchange and National Stock Exchange in Mumbai

Motilal Oswal

Securities Ltd.

Institutional

Equities

Broking &

Distribution

Motilal Oswal

Investment

Advisors Pvt. Ltd.

Investment

Banking

MOPE Investment

Advisors Pvt Ltd.

Private Equity

Real Estate

Motilal Oswal Financial Services Ltd.

Motilal Oswal

Wealth Management

Ltd.

Financial

Strategy

Wealth

Management

Motilal Oswal Asset

Management

Co. Ltd.

PMS

AIF

Mutual Funds

Offshore Funds

Aspire Home

Finance

Corporation Limited

Housing Finance

Motilal Oswal

Commodities

Broker Private Ltd.

Commodity

Broking

Evolution

Institutions

Corporates

638+

100+ Mutual Fund

Retail broking

Institutional Equities

PMS

DistributionMF, IPO, Insurance

Investment Banking

Retail broking


DistributionMF, IPO

Retail broking


Private Equity

Lending(LAS)

PMS

Wealth Management

Broking Integrated Financial Services

1987 - 95 1996 - 2005 2006 - 2007 2010

Retail broking


Investment Banking

Private Equity

Lending(LAS)

PMS

Wealth Management


Mutual Fund

Retail broking


Investment Banking

Private Equity

Lending(LAS)

PMS

Wealth Management


Housing Finance

2014

FY18 update- Achieving a high, sustainable RoE

Notes: • # Treasury gains in Agency business P&L have been classified under Fund based business• Does not include unrealised gain on our quoted equity investments (Rs 7 bn as of December 2017).• Post-tax XIRR of these investments (since inception): ~25%; other treasury investments are valued at cost

Group RoE Segment-wise RoE*, with % of net worth employed (NWE)

Capital

Markets#

156% in FY18

Asset

Management

200% in FY18

Housing

Finance

4% in FY18

Fund based

business

5% in FY17

Capital

Markets#

61% in FY17

Asset

Management

206% in FY17

Housing

Finance

17% in FY17

Fund based

business

12% in FY18

MOFSL

Consolidated

27% (Inc-Unrealised Gain is 31%) in FY18

MOFSL

Consolidated

22% in Q3FY17

(5% of NWE) (6% of NWE) (34% of NWE) (55% of NWE)

(7% of NWE) (4% of NWE) (34% of NWE) (55% of NWE)

Business Snapshot

Trusted by 1 Million+ customersCustomised advice for various Investing Styles & Risk Profiles

● One stop solution provider for all financial needs: We offer our customer a range of products to ensure that

all the needs are met under one roof.

● One of the largest broking companies in India with presence across 2,200+ locations and AUM of 8,000+

Cr* in investment products.

● Award-winning research covering 95% of market capitalization.

● We offer 100% paperless trading and demat account in 15 minutes.

● Real-time portfolio monitoring and restructuring tools which help you to make investment decisions on

the move & Ability to get recommendations across asset classes at your fingertips.

● Feature rich execution options for customers through MOBILE | TAB | DESKTOP | WEB | Call & Trade

*AUM Mentioned here is combined AUM of MOSL in all investment Products ( PMS, MF,

fixed income, Alternate Investment Product)

Market Update

o Macro Update

o Equity Market Update

o Fixed Income Update

Current Account Deficit & wholesale Inflation widening

India’s current account deficit (CAD) widened sharply to $13 bn in

Q4FY18 from just $2.6 bn (0.4% of GDP) in the corresponding

quarter last year. This rise in CAD was largely led by a 110 bps Y0Y

surge in the non-oil non-gold merchandise trade deficit.

Overall, the merchandise trade widened by $11.9 bn Y0Y to $41.6

bn (5.9% of GDP) in Q4FY18. Import frowth (+15.7%) continued

outspacing exports growth (+6.3%). Invisible earnings rose 5.2% Y0Y

to $28.6 bn in Q4FY18, partially offsetting the higher merchandise

trade deficit.

Capital inflows stood at $24.6 bn (3.5% of GDP) in Q4FY18, much

higher than $10.4 bn (1.4% of GDP) in Q4FY17. While FDI inflows

dipped slightly to $7.4 bn from an average of $8bn for the first three

quarters of FY18, FPI inflows declined sharply to $2.4 bn from an

average of $6.6 bn.

Retail inflation inched upwards to 5 months high of 5.00% (which is

slightly lower than Dec 2017 CPI no.) in June 2018 as compared to

4.87% in May 2018. Inflation based on wholesale prices shot up to a

15 month high of 5.77% in June 2018 from 4.43% in May 2018.

Similar to retail inflation, unfavourable base, fuel and food inflation

were the main driver for the surge in wholesale inflation.

Source: Trading Economics, RBI & MOPWM | Data as on 31st July 2018

1.2

1.7

1.4

0.1 0.1

0.6

1.4

0.4

2.5

1.1

2.11.9

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY16 FY17 FY18

CAD (% of GDP)

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec

-17

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

CPI WPI

Equity Market: Large Cap hold up, while mid & small caps continue to remain volatile

Equity markets (represented by NIFTY 50) ended month on higher note

after flat two consecutive month. Trade tension between US & China had

negative impact on the market sentiment. Moreover, rupee depreciation

against dollar, rising 10 year G-Sec yield and surge in oil prices further

dampened market sentiment. However, easing in rupee valuation, 10

year G-Sec yield and better corporate earnings have supported the

market sentiment in the month of June 2018. Our NIFTY EPS for FY19

have been cut by 3.6% to INR 559 and for the FY20 are largely stable at

INR 694. From valuation standpoint, NIFTY’s forward PE is 20.32x is

trading above the long term average. Currently valuation levels are on

the back of depressed earnings growth over the last few years. Earnings

recovery from here on shall provide the necessary support to the

market. We expect strong earnings recovery supported by demand

recovery in consumption sectors, low base of demonetization and

commodity price inflation. In the near term, markets are likely to remain

under pressure due to strong USD, boiling crude prices and weak global

developments, however, progression of better monsoon could provide

some respite to the markets.

Given the performance of last 5 years and from the valuation

perspective, large cap offers valuation comfort as compared to

midcaps given the high visibility on earnings provided by large caps.

Also, we believe there are various opportunities in certain mi & small

cap space which can benefit from broad based recovery in the

economy. Thereby, we continue to favour multicap and focused midcap

strategies.Source: MOSL & Bloomberg | Data as on 31st July 2018

5%

-5%-4%

6%

0% 0%

6%

9%

-2%

-5% -5%

8%

-7%

-4%

4%

-11%

-3%-5%

-7%

8%

-7%-8%

4%

-19%

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

CYT

D

NIFTY 50 CNX Mid Cap CNX Small Cap

5

9

7

12

7

11

13

17

22

3

9

0

65

10

14

1

3

Q1

FY1

7

Q2

FY1

7

Q3

FY1

7

Q4

FY1

7

Q1

FY1

8

Q2

FY1

8

Q3

FY1

8

Q4

FY1

8

Q1

FY1

9

NIFTY Sales growth NIFTY PAT growth

Debt Market: RBI Rate hiked, stay invested with “Accruals”

RBI monetary policy committee decided to raise the repo rate by

25 bps to 6.50% &

The MPC is targeting to maintain inflation in a band of 4 (+/-

2)%, however the inflation projection is raised of 4.6% CPI in H1

and 4.8% in H2. Meanwhile, MPC is in say that risk of forecast is

evenly balance. In lieu of the domestic & global uncertainties,

yields across the curve, especially on the front end, inched up

inflation at 5% in the month of June 2018.

To give the perspective, in last one year, AAA yield curve has

shifted upwards and is currently trading at levels above the

levels of AA yield curve respectively prevailing at that time. A

case in point is that over the last one year the quantum of rise in

yield of lower rated assets, thus leading to spread compression

between AAA & high yielding assets. Such compression has been

largely owing to transmission of interest rate rise to AAA

segment due to its liquid and better price discovery attribute

and not owing to any credit prospects of lower rated bonds.

Keeping in mind that there are various factors affecting the

bond market, we believe that volatility would persist and the

yield would hover in a range bound manner. The investors are

expected to remain on sidelines due to the lack of any positive

fresh cues.

Source: Bloomberg | Data as on 31st July 2018

6.73 6.78

7.05

7.48

8.03

7.507.67

7.807.90

8.057.94

7.77

8.06

1M 2M 3M 6M 1Yr 2Yr 3Yr 4Yr 5Yr 7Yr 9Yr 10Yr 15Yr

Yield curve

Current 1 mth back 6 mth back 1 yr back

88.97

54.25

127.09

76.49

47.5

145.54

83.11

50.75

148.29

AAA to G Sec AA to AAA A to AA

Credit spreads

10 yr maturity 5 yrs maturity 3 yrs maturity

Product Update

o Portfolio Management Services

o Private Equity- IBEF-III

o Mutual Fund

o Fixed Income

A comprehensive basket of products to meet all financial needs

*Alternate Assets are not available for regular subscription.

MOSL Product Offerings

Mutual Fund

• Equity Mutual Fund

• ELSS Funds

• Balanced Funds

• Arbitrage Funds

• Short term Debt Funds

• Accrual & Credit Funds

• Duration Funds

• Fixed Deposits

• Preference Shares

• Perpetual Bonds

• High Credit Bonds &

NCDs

• Capital Gain Bonds

• Government of India

Bond

• MOAMC Value

Strategy

• MOAMC NTDOP

• MOAMC IOP

• MOAMC IOP V2

• MOAMC BOP

• ASK IEP

• Invesco DAWN

PMS Fixed IncomeAlternate Assets*

• IBEF (Private Equity)

• AIF Funds (Cat III)

• MOAMC AIF

• Renaissance AIF

• IREF (real estate)

• Structured Product

Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed

Income & Alternate Assets

New Product Offering

o Renaissance India Next Fund (category-III Alternate Investment Fund)

New Fund- Renaissance India Next Fund AIF (exclusive for Motilal Oswal)

• Focus on sustainable & durable business model

• Superior quality businesses as demonstrated by competitive edge, pricing power, ROE, FRC.

• Good quality & competent management teams.

• Identify ideas that can deliver superior growth over medium term to long term.

• Ability to invest at reasonable valuations.

• Focus on economic value of business.

Investment Philosophy

• Over two decades of experience in Equities fund management.

• Ability to leverage his Private Equity experience at RARE Enterprises.

• Known for identifying business leaders early and buy them at reasonable valuations.

• Emphasis on Risk management and Bottom up selection.

• Fund management skill honed through prior stints at UTI AMC, Axis AMC, DSP Merill Lynch, Motilal Oswal.

• Last stint was with Axis AMC as Head of Equities.

Managed by

Pankaj Murarka

• Dominant Market players & companies in Industries that have gone through consolidation.

• Focused on companies that will get benefited from India’s Economic Recovery.

• Companies with a healthy balance sheet to ensure margin of safety.

• Mutlicap fund with bottom up stock selection.

Theme of the Fund

New Fund- Renaissance India Next Fund AIF (exclusive for Motilal Oswal)

Category of Fund Key features of Fund

Portfolio Name Renaissance India Next Fund

Minimum Investment Rs. 1 Crore & multiple of Rs. 1 lac

Reference Index Nifty 50

Tenure 3 year + 1 year extendable

Share Class

F1 F2 A1 (Rs.1Crs – 5Crs) A2 (Rs.1Crs – 5Crs)

100% Upfront

30% with application

100% Upfront

30% with application

40% 1st Drawdown 40% 1st Drawdown

30% 2nd Drawdown 30% 2nd Drawdown

Set up Fees Upto 2% Upto 2%

Management Fees 2.5% p.a. 1.75 % p.a.

Hurdle Rate N/A 10%

Performance Linked Fee (to be charged at the end of the tenure or redemption)

N/A 15% (with out catch up)

Exit Load

F1 / A1 F2 /A2

24 to 36 months - 3% 18 to 36 months - 3%

36 months to Fund Closure - Nil 36 months to Fund Closure - Nil

Portfolio Management Services

o MOAMC Value

o MOAMC NTDOP

o MOAMC IOP

o MOAMC IOP V2

o MOAMC BOP

o ASK IEP

o Invesco DAWN

Value Strategy

• Buy Right & Sit Tight approach to stock investing

• Value PMS has delivered 23.70% annualized returns since

inception versus 17.05% of Nifty 50; INR 1 Cr. invested in Value

PMS in March 2003 is worth INR 26.24 Cr versus INR 11.23 Cr. in

Nifty 50.

• Focused portfolio approach, currently strategy has 20 stocks in its

portfolio.

Performance(%ge) Value of 1 cr. Invested

PeriodValue

StrategyNifty 50

ValueStrategy

Nifty 50

1 Month 2.70 5.99 1.03 1.06

3 Months -0.99 5.75 0.99 1.06

6 Months -0.67 2.98 0.99 1.03

1 Year 3.41 12.70 1.03 1.13

2 Years 8.89 14.66 1.19 1.31

3 Years 6.84 10.00 1.22 1.33

4 Years 13.23 10.13 1.64 1.47

5 Years 18.57 14.61 2.34 1.98

Since Inception 23.70 17.05 26.24 11.23

Inception Date Benchmark Fund Manager

25-Mar-03 Nifty 50 Index Mr. Shrey Loonker

Source: MOAMC | Data as on 31st July 2018

Portfolio (Top 5 Stocks)

Scrip Name (%) of Market value

HDFC Bank Ltd. 11.67

Kotak Mahindra Bank Ltd. 9.65

Bajaj Finserv Ltd. 7.30

Bharat Petroleum Corporation Ltd.

6.56

AU Small Finance Bank Ltd. 6.38

Market Cap

Sector Allocation %of Assets

Large Cap 89

Mid Cap 9

Small Cap 1

Top 3 sectors

Sector Name (%) of Market value

Banking & Finance 50.32

Auto & Auto Ancillaries 22.64

Oil and Gas 9.62

Next Trillion Dollar Opportunity Strategy (NTDOP)

• The strategy aims to deliver superior returns by investing in

focused themes which are part of the next trillion dollar GDP

growth opportunity. It aims to predominantly invest in Multi Cap

stocks with a focus on identifying emerging stocks/ sectors.

• Have successfully completed 10 years.

• The portfolio consist of 24 stocks.

• In last 5 years, NTDOP PMS has delivered positive return of 31.35%

versus 17.12% of Nifty 500.


Period NTDOP NIFTY 500 NTDOP NIFTY 500

1 Month 5.99 5.33 1.06 1.05

3 Months 2.80 1.62 1.03 1.02

6 Months 5.53 -0.49 1.06 1.00

1 Year 9.73 9.75 1.10 1.10

2 Years 15.06 14.74 1.32 1.32

3 Years 14.34 10.74 1.49 1.36

4 Years 26.90 11.72 2.59 1.56

5 Years 31.35 17.12 3.91 2.20

Since Inception 18.45 6.20 6.08 1.90


5-Dec-07 NIFTY 500 Index Mr. Manish Sonthalia




Kotak Mahindra Bank Ltd. 12.17

Bajaj Finance Ltd. 11.94

Page Industries Ltd. 10.05

Voltas td. 8.39

Eicher Motors Ltd. 5.77

Market Cap


Large Cap 45

Mid Cap 50

Small Cap 5

Top 3 sectors



FMCG 17.70


India Opportunity Portfolio (IOP)

• The Strategy aims to generate long term capital appreciation by

creating a focused portfolio of high growth stocks having the

potential to grow more than the nominal GDP for next 5-7 years

• The Strategy at present has a concentration in 24 stocks.

• Focus Theme for Next Five year: REVIVAL IN CAPEX CYCLE | MAKE

IN INDIA | THIRD TRILLION DOLLAR OPPORTUNITIES

• In last 4 years, IOP PMS has delivered positive return of 18.01%

versus 10.21% of Nifty Midcap100.


Period IOPNIFTY Small

Cap100IOP

NIFTY SmallCap100

1 Month 1.94 4.01 1.02 1.04

3 Months -9.67 -11.01 0.90 0.89

6 Months -15.09 -15.32 0.85 0.85

1 Year -11.50 -4.29 0.89 0.96

2 Years 14.06 10.76 1.30 1.23

3 Years 11.32 9.27 1.38 1.30

4 Years 18.01 10.21 1.94 1.48

5 Years 20.38 22.99 2.53 2.81

Since Inception 14.53 9.48 3.15 2.15


15-Feb-10Nifty Smallcap 100

IndexMr. Manish Sonthalia




Development Credit Bank Ltd. 8.98

Birla Corporation Ltd. 8.24

AU Small Finance Bank Ltd 7.78

Aegis Logistics 7.27

Gabriel India Ltd. 6.06

Market Cap


Large Cap --

Mid Cap 25

Small Cap 75

Top 3 sectors



Pharmaceuticals 13.36

Oil and Gas 12.64

India Opportunity Portfolio V2 (IOP V2)


5-Feb-18Nifty Smallcap 100

IndexMr. Manish Sonthalia

• The Strategy aims to deliver superior returns by investing in stocks

from sectors that can benefit from India's emerging businesses.

• It aims to predominantly invest in Small and Midcap stocks with a

focus on identifying potential winners.

• Focus on Sectors and Companies which promise a higher than

average growth by focusing on four basic themes.


• Concentration on emerging Themes.

• Investments with Long term perspective.

• Four basic themes- affordable housing, market share gain by

NBFCs & Private Sector banks from PSU banks, growth in rural

economy, shift from unorganized to organized sector

• Investment Approach: “Buy & Hold” strategy

• IOP V2 has delivered 4.28% vs NIFTY Midcap 100 has delivered

4.01% in the last 1 month.




Heg Ltd 10.64

Gruh Finance Ltd. 7.68

Cholamandalam Investment And Finance Company Ltd.

7.53

Godrej Agrovet Ltd 7.23

Bajaj Electricals Ltd 6.69

Market Cap


Large Cap --

Mid Cap 47

Small Cap 52

Top 3 sectors



Electricals & Electronics 20.69

Agriculture 11.39

Business Opportunities Portfolio (BOP)


16-Jan-18 Nifty 500 Index Mr. Manish Sonthalia

• The Portfolio will be constructed based on in-depth research leading

to bottom-up stock picking with a view of equities from 3-4 years

perspective.

• It aims to predominantly invest in Small and Midcap stocks with a

focus on identifying potential winners.


• Concentration on emerging Themes.


• Five basic themes- Affordable Housing, market share gain by NBFCs &

Private Sector banks from PSU banks, Rise in Consumer

Discretionary, Agriculture & GST beneficiaries.

• Investment Approach: “Buy & Hold” strategy

• BOP has delivered 5.23% vs NIFTY 500 has delivered -0.49% in the

last 6 months.




Hindustan Unilever Ltd. 8.68

HDFC Bank Ltd. 7.77


Godrej Agrovet Ltd. 6.11

Exide Industries Ltd. 6.07

Market Cap


Large Cap 50

Mid Cap 26

Small Cap 24

Top 3 sectors



FMCG 17.96

Retail 11.08

India Entrepreneur Portfolio (IEP)

• The strategy is market cap agnostic and builds portfolio which has

companies with more than 25% promoter holdings, high ROCE &

high non-dilutive compounded EPS. Identify business with

competitive advantage that is significant sized (min. 100 Cr. PBT).

The Strategy is built primarily on entrepreneur concept.

• The portfolio consist of 20 stocks.


• In last 5 years, IEP PMS has delivered positive return of 27.80%

versus 17.00% of BSE 500.


Period IEP BSE 500 IEP BSE 500

1 Month 7.70 5.40 1.08 1.05

3 Months 6.40 1.80 1.06 1.02

6 Months 15.50 -0.20 1.16 1.00

1 Year 19.80 10.20 1.20 1.10

2 Years 17.30 14.90 1.38 1.32

3 Years 15.90 10.90 1.56 1.36

4 Years 21.30 11.70 2.16 1.56

5 Years 27.80 17.00 3.41 2.19

Since Inception 21.40 10.20 5.22 2.29


25-Jan-10BSE 500 IndexNifty 50 Index

Mr. Prateek Agrawal Mr. Sumit Jain

Source: ASK IM| Data as on 31st July 2018 (market cap data is as per SEBIclassification



Bajaj Finserv Ltd. 7.87


Britannia Industries Ltd. 7.01

IndusInd Bank Ltd 6.80

Page Industries Ltd. 6.45

Market Cap


Large Cap 75

Mid Cap 23

Small Cap 1

Top 3 sectors



FMCG 22.77


INVESCO Dawn Strategy

There’s always a light at the end of the tunnel

• Focus on mean reversion & value style

• High impetus on quality business models & management

• Bottom up stock picking approach without bias towards market

cap or sector

• Catalyst for investing – Cyclical recovery, earning recovery and

Under owned to Value style

• Focused portfolio approach, currently strategy has 23 stocks in

its portfolio.


28- Aug-17 S&P BSE 500Mr. Taher BadshahMr. Amit Ganatra

Source: INVESCO AMC | Data as on 31st July 2018



Reliance Industries Ltd. 8.53

ICICI Bank Ltd. 8.22

ITC Ltd. 6.08

Infosys Ltd. 5.61

Exide Industries Ltd. 5.32

Market Cap


Large Cap 63.09

Mid Cap 11.93

Small Cap 17.93

Top 3 sectors


Financials 23.45

Energy 11.42

Industries 11.28

Private Equity Fund

o India Reality Excellence Fund-IV

o India Business Excellence Fund-III

India Reality Excellence Fund – IREF IV

IREF IV key features

Target Fund Size INR 1,500 Cr. With tenor of 5+1+1 years

Regular Income & Equity Update

Mix of Debt & Equity with 50% of the portfolio to be under mezzanine structure which will give periodic pay-outs and equity upside along with capital protection.

Structured Equity Investments

Upto 50% of the portfolio to be invested under pure equity/structured equity to take the benefit of recovery cycle.

High Sponsor commitment

Sponsor will commit 15% of aggregate capital commitment received by the Fund, subject to a minimum capital commitment of INR 50 Cr. And maximum capital commitment of INR 100 Cr.

Alignment of InterestCarry structure for team members to ensure alignment of interest and minimise churn within the team.

Majority external members of IC

Experts from various fields of Real Estate, banking, Corp Finance are part of Investment Committee.

Project StrategyInvest in top 6 cities across residentialproject primarily which are self liquidating in nature.

Fund I – INR 165 Cr. Fund

• 2008 vintage fund; Final close in Dec 2009.

• 7 Investments across Mumbai, Pune & Bangalore.

• All 7 investments have been exited

Source: MORE| Data as on 31st July 2018

Fund II – INR 500 Cr. Fund

• 2013 vintage fund; Final close in Apr. 2015.

• 14 investments; 7 exited.

• Award the “Real Estate Fund of the Year-Domestic” at the CNBC- Awaz Real Awards 2016-17

• 81% money returned to the investors within commitment period

Fund III – INR 1,000 Cr. Fund

• 2016 vintage fund; Final close in August 2017.

• 15 Investments across Mumbai, Pune, Delhi NCR, Chennai, Hyderabad & Bangalore.

• All 13 investments are Structured Debt transactions.

• 2 out of 15 investments exited.

India Business Excellence Fund – IBEF III

• Fund Launched in July 2017

• Amount raised till date: INR 1,826 Cr

• Investment Strategy – Investment in mid-market

enterprises that are typically market leaders which are

generally managed by first-generation entrepreneurs

• Preferred sectors: Consumer, Financial Services, Life

sciences

IBEF key terms

Target Fund Size INR 2,000 Cr

Investment ManagerMOPE Investment Advisors Private Limited

Hurdle Rate 10% IRR for domestic unit holders

Target Returns Investment IRR 25% – 30%

Minimum Commitment Domestic unit holders INR 2.5 Cr

Sponsor Commitment INR 170 Cr

Team Commitment INR 38 Cr

Tenure10 years from the date of the final closing subject to two additional 1 year extensions

Commitment Period 5 years from final closing

Advisory Fees2% of commitment amount p.a. during commitment period2% of invested amount p.a. thereafter

Additional return 20% with catch-up

One time Distribution & Servicing cost

2% of the capital commitment

One time Equalization amount

1% per month on the drawn down amount, if admitted at the initial closing

Fund III – Investment

MAS FINANCIAL SERVICE

• Amount Invested – Rs. 143 crore @ Rs. 358/Share

• Status – Listed on 18th Oct , 2017 @ 660/Share

• MOIC – 1.7X (Unrealized)

N. R. Ranga Rao & Sons (Cycle Agarbathi)

• Amount Invested – Rs. 250 crore

• Status – Invested on 9th April 2018

• MOIC – 1.0X (recent investment)

Source: MOPE| Data as on 3rd July 2018

Mutual Fund

o Equity Funds

o Equity Linked Saving Schemes

o Balanced Funds

o Arbitrage Funds

o Debt Funds

Equity Mutual Funds

Source: Ace MF| Data as on 31st July 2018

Scheme AUM

(Rs. In Cr.)Inception Date

Returns (%ge) Std dev Beta Alpha

1 yr 3 yrs 5 yrs YTD (CY18)Since

Inception

Large Cap Fund

ICICI Pru Bluechip Fund 17,496.16 23-May-08 10.15 11.30 18.52 3.00 15.03 11.93 0.97 1.10

Motilal Oswal Focused 25 Fund 1,111.85 13-May-13 7.94 9.59 18.87 4.00 16.67 12.79 0.91 2.96

SBI BlueChip Fund 19,064.05 20-Jan-06 7.10 10.12 19.93 2.00 11.53 8.57 0.61 3.90

Category Avg -- -- 7.04 9.49 17.11 1.89 -- 11.91 0.85 -0.10

NIFTY 50 -- -- 12.70 9.99 14.61 9.00 -- 11.85 1.00 --

Multi Cap Fund

Kotak Standard Multicap Fund 19,826.83 11-Sep-09 9.19 13.09 22.75 4.00 15.06 12.36 0.92 3.90

ICICI Pru Value Discovery Fund 16,129.59 16-Aug-04 7.32 7.66 24.55 0.39 21.27 9.05 0.61 0.15

Motilal Oswal MC 35 Fund 13,015.79 28-Apr-14 6.80 13.60 -- -0.13 26.33 14.25 0.89 8.58

Category Avg -- -- 7.05 10.81 20.47 -1.05 -- 13.20 0.96 0.84

NIFTY 500 -- -- 9.75 10.73 17.11 2.00 -- 12.62 1.00 --

Small & Mid Cap Fund

Sundaram Midcap Fund 6,039.25 19-Jul-02 1.66 10.80 27.36 -10.00 27.49 13.25 0.95 0.20

HDFC Small Cap Fund 4,143.36 03-Apr-08 17.25 18.22 24.58 -3.84 15.58 16.39 0.77 6.83

HDFC Mid Cap Opp Fund 25-Jun-07 5.98 13.64 28.28 -4.78 17.03 13.27 0.92 1.10

Category Avg -- -- 4.49 10.95 27.38 -8.98 -- 13.52 0.81 0.70

NIFTY free float Midcap 100 -- -- 1.96 11.19 22.38 -11.00 -- 13.88 1.00 --

ELSS | Balanced Funds | Arbitrage Funds | DAAFs


Scheme AUM

(Rs. In Cr.)Inception

Date

Returns (%ge) Std dev Beta Alpha

Asset Category (%ge)

1 yr 3 yrs 5 yrsSince

Inception Equity Debt

Others /Cash

Equity Linked Savings Scheme

Franklin India Tax shield Fund 3,623.09 10-Apr-99 6.22 8.42 19.82 23.20 9.21 0.64 1.52 91.80 8.20 --

Invesco India Tax Plan 556.63 29-Dec-06 15.62 12.02 23.18 15.30 11.10 0.85 2.39 98.21 1.79 --

IDFC Tax Advt(ELSS) Fund 1,527.65 26-Dec-08 9.96 11.25 22.05 19.95 16.39 1.24 2.67 90.69 9.31 --

Balanced Fund

Aditya Birla SL Equity Hybrid '95 Fund 14,484.19 10-Feb-95 4.18 9.87 18.22 20.27 8.59 1.05 0.90 72.17 22.24 3.22

Franklin India Equity Hybrid Fund 2,036.19 10-Dec-99 4.83 7.82 17.03 14.09 6.70 0.73 1.08 65.65 33.03 1.32

ICICI Pru Equity & Debt Fund 28,266.47 03-Nov-99 4.99 10.62 18.81 14.57 10.13 1.24 0.49 65.07 27.77 2.83

Arbitrage Fund

IDFC Arbitrage Fund 2,513.35 21-Dec-06 5.97 6.05 7.14 7.17 0.63 -- -- -- -- --

BNP Paribas Arbitrage Fund 621.39 28-Dec-16 5.94 -- -- 6.32 0.20 0.02 0.81 -- -- --

Kotak Equity Arbitrage Scheme 11,763.88 29-Sep-05 6.20 6.26 7.38 7.51 0.61 -- -- -- -- --

Dynamic Asset Allocation Fund

Motilal Oswal Dynamic Fund 1,780.03 27-Sep-16 6.22 -- -- 11.60 5.65 1.02 -0.34 67.26 24.61 31.46

ICICI Pru Balanced Advantage Fund 27,877.11 30-Dec-06 6.82 8.69 15.22 11.13 5.73 -- -- 65.28 25.04 28.28

Debt Funds


Scheme Inception

Date

Simple Annualized CAGR Avg

MaturityMod Dur YTM (%)

Sov & AAA

Below AAA

Call & Cash

Unrated 3 Month 6 Month 1 yrs 3 yrs 5 yrs

Since Inception

Liquid Fund- (Investment duration 1 day to 3 months)

ICICI Pru Liquid Fund 17-Nov-05 7.18 7.29 6.96 7.27 8.06 7.89 0.14 0.13 7.27 109.17 0.10 -9.49 --

Aditya Birla SL Liquid Fund 30-Mar-04 7.17 7.29 7.00 7.29 8.11 7.57 0.14 0.14 7.30 91.75 -- -2.76 8.25

Ultra Short Term Fund - (Investment duration 3 months to 9 months)

ICICI Pru Savings Fund 27-Sep-02 7.16 6.97 6.36 7.85 8.64 8.02 0.92 0.78 7.78 79.34 -- 2.26 --

Franklin India Ultra Short Bond Fund 18-Dec-07 8.19 8.10 7.63 8.85 9.44 8.87 0.53 0.45 8.25 32.39 22.68 13.38 0.99

Short Term income Fund - (Investment duration 1 year to 2 years)

Aditya Birla SL ST Opp Fund 09-May-03 5.86 5.10 4.29 7.58 8.84 7.29 1.80 1.56 7.71 56.55 3.73 4.96 --

IDFC Bond Fund – Short Term Plan 14-Dec-00 6.05 5.15 4.49 6.93 8.12 7.50 1.93 1.63 7.63 96.42 -- 3.58 --

Credit Opportunities Fund – (Investment duration 18 months to 3 years)

Franklin India ST Income Plan 31-Jan-02 7.60 7.09 6.56 8.15 9.47 8.34 2.23 1.78 9.27 39.26 43.04 4.93 8.73

Reliance Credit Risk Fund 10-Jun-05 6.94 5.75 5.32 7.87 8.86 7.05 2.34 1.77 8.53 5.43 31.79 3.20 6.03

Accrual Fund – (Investment duration 18 months to 3 years)

ICICI Pru Bond Fund 18-Aug-08 4.62 2.32 1.82 7.08 8.70 9.32 4.59 3.39 7.59 96.08 -- 3.92 --

IDFC Corp Bond Fund 12-Jan-16 6.11 5.48 4.62 -- -- 7.55 1.80 1.56 8.01 95.25 -- 4.75 --

Dynamic Bond Fund – (Investment duration more than 3 years)

IDFC Dynamic Bond Fund 01-Dec-08 5.86 3.63 0.07 6.91 7.81 7.85 4.00 3.35 6.54 98.35 -- 1.65 --

UTI Dynamic Bond Fund 23-Jun-10 4.22 5.02 1.42 8.14 9.33 9.05 2.57 1.92 6.96 59.27 1.85 27.57 0.54

Fixed Income

o Fixed Deposits

o Capital Gain Bonds (54EC Bonds)

o 7.75% Government of India Savings Bond

Corporate Fixed Deposits | Capital Gain Bonds

Company name Ratingcumulative interest rate in (%ge) Senior citizen

Additional ROI (%ge)

Interest mode12 m 24 m 36 m 48 m 60m

Mahindra & Mahindra Finance Services Ltd

CRISIL : FAAA 7.70 8.25 8.50 8.50 8.50 0.25 H/Q

DHFL - Aashray Deposit CARE : AAA 7.70 8.00 8.45 8.50 8.50 0.40 M/Q/H/Y

DHFL - Aashray Deposit Single CARE: AAA 7.90 (14M) 0.40 M/Q/H/Y

DHFL - Aashray Deposit Trust CARE : AAA 7.75 (13M) -- M/Q/H/Y

DHFL - Aashray Deposit CARE : AAA 8.50 (40M) 0.40 M/Q/H/Y

Shriram Unnati Deposit CRISIL : FAAA+ 7.75 8.00 8.60 8.60 8.60 0.25 Q/H/Y

Capital gain bonds (54 EC Bonds)

Company name Rate Of Interest (60 months)

Rural Electrification Corporation Ltd. - (REC) 5.75%

National Highway Authority of India - (NHAI) 5.75%

Indian Railway Finance Corporation Ltd. - (IRFC) 5.75%

Power Finance Corporation Ltd. – (PFC) 5.75%

Data as on 31st July 2018

7.75% Government of India Savings Bond

Particulars Specifications

Issue 7.75% Savings (Taxable) Bonds, 2003

Tenure 7 Years

Rate of Return 7.75% (payable half- yearly on 1st February & 1st August)

Min. Investment Rs. 1000/- multiple by Rs. 1000

Max. Investment No Limit

Date on Issue of bond Date of realization of cheque / draft

Bond Issue Physical mode only

Who can apply Individual & HUF

Cheque in favour HDFC Bank 7.75% SAVINGS (TAXABLE) BONDS, 2018

Government of India issued 7.75% saving bond. This is one of the debt instrument which giving 7.75% p.a. return with no credit risk.

Data as on 31st July 2018

36

Thank You !

Motilal Oswal Securities Ltd. (MOSL) Member of NSE, BSE, MCX, NCDEX,CIN no.: U65990MH1994PLC079418

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi,Mumbai-400025; Tel No.: 022-3980 4263; Website www.motilaloswal.com.Correspondence Adds: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West),Mumbai- 400 064. Tel No: 022 3080 1000.Registration Nos.: Motilal Oswal Securities Ltd. (MOSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397; Investment Adviser:INA000007100; IRDA Corporate Agent: CA0541.Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS andMutual Funds are offered through MOAMC which is group company of MOSL.Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered throughMOWML, which is a group company of MOSL. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS,Fixed Deposit, Bond, NCDs, Insurance Products and IPOs. *Real Estate is offered through Motilal Oswal Real EstateInvestment Advisors II Pvt. Ltd. which is a group company of MOFSL. *Private Equity is offered through MotilalOswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. *Research & Advisoryservices is backed by proper research.Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There isno assurance or guarantee of the returns. Investment in securities market are subject to market risks, read all therelated documents carefully before investing.Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: [email protected], Contact No.:022-38281085.

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