Latest news with #MOAMC
Economic Times
3 days ago
- Business
- Economic Times
Motilal Oswal Mutual Fund joins ONDC, appoints Cybrilla as service provide
Synopsis Motilal Oswal AMC has integrated with ONDC, appointing Cybrilla as backend provider, to expand mutual fund access via a digital distribution channel. The move aims to bridge distribution gaps, enhance retail participation, and leverage India's digital infrastructure, enabling investors, including first-timers, to access quality funds and make informed financial decisions. Motilal Oswal Asset Management Company will integrate with Open Network for Digital Commerce. Motilal Oswal Asset Management Company (MOAMC) has announced its integration with the Open Network for Digital Commerce (ONDC) to facilitate transactions through the platform. It has appointed Cybrilla as the service provider for the backend platform powering this an initiative by DPIIT, Ministry of Commerce, aims to democratise digital commerce by establishing an interoperable open network for digital transactions. Also Read | Mutual funds boost cash allocation to Rs 2.06 lakh crore in July amid weak Q1 earnings This initiative seeks to make mutual fund investing more accessible by creating a digital distribution channel. Leveraging ONDC's open protocol, MOAMC aims to widen access to mutual fund products for a broader investor base, including first-time investors. The move supports efforts to enhance participation in financial markets and utilise India's digital public infrastructure, according to a press release by the fund house. 'By integrating with the ONDC Network, we are not just offering investment products through a new distribution channel, but also working to create greater access for retail investors to a range of funds that may help them achieve their individual financial goals. Backed by decades of research-driven insights and investment expertise, we aim to expand our knowledge footprint and enable investors to make informed investment decisions,' said Prateek Agrawal, Managing Director and Chief Executive Officer at MOAMC. 'This partnership addresses distribution gaps and develops digital rails that can benefit all stakeholders — enabling distributors to expand their reach and investors to access funds aligned with their financial goals. It's a step toward broader participation in wealth management, giving investors across locations and income segments access to information and channels that support informed investing,' said Akhil Chaturvedi, Executive Director and Chief Business Officer at MOAMC. Also Read | Gold ETF inflows decline by 40% to Rs 1,256 crore in July. Here's why 'MOAMC's integration with the ONDC Network marks a significant shift from centralised to decentralised distribution. When established players such as MOAMC take bold strides in technology-led innovation, it signals confidence in the ecosystem. This foresight sets a precedent for the industry to follow and fosters greater retail participation in formal finance,' said Vibhor Jain, Acting CEO and COO at ONDC.'MOAMC's integration with ONDC combines the trust of an established investment house with the reach of a truly open network. By enabling this connection, we are creating new pathways for grassroots investors to access high-quality funds through both local distributors and digital platforms. We are excited about this integration, as it will lead to wider participation in formal investing and provide more people with the tools to build long-term wealth,' said Anchal Jajodia, Co-founder of Cybrilla. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
24-07-2025
- Business
- Time of India
Prateek Agrawal bets on renewables, EVs and defence for long-term market outperformance
"One observation is that today, even though return on assets (ROAs) might vary, return on equity (ROEs) across banks are becoming quite similar. Some may have lower ROAs but higher leverage, especially if they're seen as government-backed entities. If ROEs are converging, then over time, valuations should also converge—that's the idea," says Prateek Agrawal, MD & CEO, MOAMC. Question: What is your assessment of the Indian banking space right now? Let's focus on the larger banks—SBI with its QIP, and of course, what we've seen so far from Axis, HDFC Bank, and ICICI Bank. Prateek Agrawal: In terms of the composition of their books, the banks are starting to look quite similar. Even in terms of growth, there is a convergence happening. Regarding capitalisation strategies, earlier we used to think that PSUs were reluctant to raise capital—they would wait until the last minute. In contrast, private sector banks raised capital proactively when it was available, which enabled them to grow faster. Now, for the first time, we're seeing a PSU bank take that approach, and I believe it will work well for them. In terms of execution, some banks have gone through regime changes, consolidations, mergers, and so they are currently in the assimilation phase. Those that went through this earlier are now having a better run in the market, which is also reflected in their stock performance. One observation is that today, even though return on assets (ROAs) might vary, return on equity (ROEs) across banks are becoming quite similar. Some may have lower ROAs but higher leverage, especially if they're seen as government-backed entities. If ROEs are converging, then over time, valuations should also converge—that's the idea. Question: Let's move to your area of expertise—the AMC space. We've seen significant investor interest in some of the listed players, and SEBI has been actively pushing the long-term investment agenda. Meanwhile, broking companies are facing their own challenges. From an investor's perspective, how do you view both these sectors? What's driving investor interest? Prateek Agrawal: Let me put it this way—India used to be a country of savers. If people had surpluses, they would put it into fixed deposits across various tenures. Now, India is increasingly becoming a country of investors. Surpluses are flowing into the markets, which supports the entire financial ecosystem. Brokers facilitate transactions, and AMCs receive the investment inflows. Broking is a transaction-based business and tends to be more volatile. AMCs, on the other hand, operate on an AUM model, which is steadier. So it depends on the investor's risk appetite—brokers may offer higher growth potential, while AMCs offer stability. As far as AMCs go, we are fortunate that many of the larger players are extremely disciplined. They are managing to grow AUMs while maintaining margins—a very difficult feat. With such a strong top order, the whole industry can grow profitably. Despite being fragmented—the largest AMC only holds about 12–13% market share in equity—the industry remains disciplined. Over the long term, there's definitely money to be made by investing in good AMCs. Now, looking at brokers—they come in two formats: brick-and-mortar and online. Online brokers that only focus on broking benefit from the influx of new traders and the volume of transactions. But if you look at them as tech platforms, there's even more potential. They already have a large investor base and can cross-sell products like loans and insurance. Others, like UPI players, have built reach by burning cash; here, these platforms are profitable from the start. If you see them as tech companies, the long-term outlook changes. Ultimately, it depends on the company's strategy and how the investor views it. But broadly, we believe capital market plays offer more potential today compared to traditional lenders. That's a theme you'll likely find across most of our portfolios. Question: I was going through your latest note where you've said it's still a time for alpha. Where do you see the potential pockets for alpha generation in this market? Prateek Agrawal: Our belief is that markets follow earnings growth. To generate alpha, you need sectors where earnings growth can significantly outpace the market over several years. For example, in the 1990s, software offered such opportunities. Then, from the early 2000s to about five or six years ago, private banks delivered exceptional excess returns. In a similar way, we think capital markets, new tech, electronic manufacturing, and some parts of the defence sector could deliver strong growth. Defence in particular is benefiting from higher spending and indigenisation. Renewables and emerging sectors like EVs and data centres also have great potential. The common thread across these sectors is that they're new, high-growth, and not directly tied to the broader economy's growth, which typically maps to index-level earnings. These sectors can deliver growth far above index averages and sustain that growth for a long time. That combination is what you need to generate alpha. These opportunities are especially accessible for a mid-sized house like ours. Many of our funds are smaller and more nimble, allowing us to discover and invest in such niches effectively.
Economic Times
24-07-2025
- Business
- Economic Times
Prateek Agrawal bets on renewables, EVs and defence for long-term market outperformance
"One observation is that today, even though return on assets (ROAs) might vary, return on equity (ROEs) across banks are becoming quite similar. Some may have lower ROAs but higher leverage, especially if they're seen as government-backed entities. If ROEs are converging, then over time, valuations should also converge—that's the idea," says Prateek Agrawal, MD & CEO, MOAMC. ADVERTISEMENT What is your assessment of the Indian banking space right now? Let's focus on the larger banks—SBI with its QIP, and of course, what we've seen so far from Axis, HDFC Bank, and ICICI Bank. Prateek Agrawal: In terms of the composition of their books, the banks are starting to look quite similar. Even in terms of growth, there is a convergence happening. Regarding capitalisation strategies, earlier we used to think that PSUs were reluctant to raise capital—they would wait until the last minute. In contrast, private sector banks raised capital proactively when it was available, which enabled them to grow for the first time, we're seeing a PSU bank take that approach, and I believe it will work well for them. In terms of execution, some banks have gone through regime changes, consolidations, mergers, and so they are currently in the assimilation phase. Those that went through this earlier are now having a better run in the market, which is also reflected in their stock performance. One observation is that today, even though return on assets (ROAs) might vary, return on equity (ROEs) across banks are becoming quite similar. Some may have lower ROAs but higher leverage, especially if they're seen as government-backed entities. If ROEs are converging, then over time, valuations should also converge—that's the idea. Let's move to your area of expertise—the AMC space. We've seen significant investor interest in some of the listed players, and SEBI has been actively pushing the long-term investment agenda. Meanwhile, broking companies are facing their own challenges. From an investor's perspective, how do you view both these sectors? What's driving investor interest? Prateek Agrawal: Let me put it this way—India used to be a country of savers. If people had surpluses, they would put it into fixed deposits across various tenures. Now, India is increasingly becoming a country of investors. Surpluses are flowing into the markets, which supports the entire financial ecosystem. Brokers facilitate transactions, and AMCs receive the investment inflows. Broking is a transaction-based business and tends to be more volatile. AMCs, on the other hand, operate on an AUM model, which is steadier. So it depends on the investor's risk appetite—brokers may offer higher growth potential, while AMCs offer stability. ADVERTISEMENT As far as AMCs go, we are fortunate that many of the larger players are extremely disciplined. They are managing to grow AUMs while maintaining margins—a very difficult feat. With such a strong top order, the whole industry can grow profitably. Despite being fragmented—the largest AMC only holds about 12–13% market share in equity—the industry remains disciplined. Over the long term, there's definitely money to be made by investing in good looking at brokers—they come in two formats: brick-and-mortar and online. Online brokers that only focus on broking benefit from the influx of new traders and the volume of transactions. But if you look at them as tech platforms, there's even more potential. They already have a large investor base and can cross-sell products like loans and insurance. Others, like UPI players, have built reach by burning cash; here, these platforms are profitable from the start. If you see them as tech companies, the long-term outlook changes. ADVERTISEMENT Ultimately, it depends on the company's strategy and how the investor views it. But broadly, we believe capital market plays offer more potential today compared to traditional lenders. That's a theme you'll likely find across most of our portfolios. I was going through your latest note where you've said it's still a time for alpha. Where do you see the potential pockets for alpha generation in this market? Prateek Agrawal: Our belief is that markets follow earnings growth. To generate alpha, you need sectors where earnings growth can significantly outpace the market over several years. ADVERTISEMENT For example, in the 1990s, software offered such opportunities. Then, from the early 2000s to about five or six years ago, private banks delivered exceptional excess returns. In a similar way, we think capital markets, new tech, electronic manufacturing, and some parts of the defence sector could deliver strong growth. Defence in particular is benefiting from higher spending and and emerging sectors like EVs and data centres also have great potential. The common thread across these sectors is that they're new, high-growth, and not directly tied to the broader economy's growth, which typically maps to index-level earnings. These sectors can deliver growth far above index averages and sustain that growth for a long time. That combination is what you need to generate alpha. ADVERTISEMENT These opportunities are especially accessible for a mid-sized house like ours. Many of our funds are smaller and more nimble, allowing us to discover and invest in such niches effectively. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
23-07-2025
- Business
- Time of India
Markets holding strong despite soft earnings and liquidity drain: Prateek Agrawal
"On the trade deal, we've already taken some steps — we've opened a few cards with our trade agreements with the UK, and now we're working on one with the EU. What we're offering is gradually coming into the public domain. Similarly, other countries are also making deals — Japan has signed something, Indonesia has too — and that gives us a sense of what's possible," says Prateek Agrawal, MD & CEO, MOAMC. What's your reading of the market construct? We've been stuck in this range for quite some time, and there's still a question mark over what will happen with the tariff deal. Now, with Japan signing an agreement with the US, there's a bit more hope that perhaps our turn could come soon. Also, the earnings season has delivered both major positive surprises and some big disappointments. Prateek Agrawal: A few thoughts. Many of the larger companies that have reported results so far may have been slightly on the softer side, yet the markets are holding up, and these companies' stocks are also holding up quite well. That, to me, indicates market strength . On the other hand, companies that have done well and beaten expectations have seen strong responses from the market, which again reflects the same underlying strength. 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What we're offering is gradually coming into the public domain. Similarly, other countries are also making deals — Japan has signed something, Indonesia has too — and that gives us a sense of what's possible. What strengthens India's position in negotiations is the sheer size of the Indian market. Today, it may be slightly smaller than Japan's, but in the future, it will be the second-largest market in the world. So, when we open up our market, we're offering something very significant. As we see how different countries are positioning themselves, the realm of possibilities starts narrowing, and if it narrows the way I expect, it could be very positive for ' Make in India '. Live Events Competing countries might offer concessions closer to 30%, while we may only offer something in the range of 10–15%. So, fingers crossed. Let's hope it happens. We've seen instances where we came very close to a deal, and it didn't materialize. So, all outcomes are still on the table, but today, I am optimistic. A good deal could make our manufacturing more competitive in the world's largest current market — and for the US, it opens a gate into what will soon be the second-largest market in the world. Which sectors do you believe stand to gain most from a US-India trade deal ? When these reciprocal tariffs were first announced, many export-focused sectors and stocks took a beating. Where do you think India can truly make a mark? Prateek Agrawal: There's a short-term view and a long-term one. If you look at the cost and availability of labour, over time, Indian manufacturing should have a distinct advantage. The US is one country that could lift us up too, but of course, our people need to be capable and ready to seize the opportunity — it works both ways. In the immediate term, think about it: the US wants to do more high-end work — things that align with their 'Make America Great Again' vision — but most of that won't be labour-intensive. They don't have enough labour. So, for labour-intensive production, they'll want to source from other countries. India, being the most populous nation in the world, should benefit here. We'll need to tweak laws and make things happen, but the opportunity is massive. The not-so-great part is that very little of this is currently represented in the Indian market. For example, how much textile can you buy? It's a tiny space. Leather goods? Same story. The entire Apple ecosystem, for instance, is outside the listed market. Yes, over time, EMS players might gain access to the US market, but today they're more focused on import substitution domestically. So, while the long-term outlook is promising, in the near term, not much will change for the stock market. The last time a similar narrative emerged — around January–February — we believe the real issue was currency and interest rate volatility. US yields were tight, and the rupee depreciated nearly 5% in about 10 days. That spooked foreign investors, who are extremely sensitive to dollar returns, and they pulled money out. But now, as things have stabilized, they're back. We've had four months of inflows. This month might be negative, but before that, it was positive. So, in the short term, we suggest watching currency markets and bond yields. The trade deal's impact may be limited in the immediate term — but over time, yes, it could be significant.
Economic Times
18-07-2025
- Business
- Economic Times
No chill without volatility: Prateek Agrawal on playing the long game in India's new market era
ET Spotlight Initiative Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads (This article is generated and published by ET Spotlight team. You can get in touch with them on etspotlight@ In an insightful episode of the ETMarkets webinar—known for bringing front-row insights from the biggest minds in investing—Prateek Agrawal, Managing Director and CEO of Motilal Oswal Asset Management Company (MOAMC), shared his perspectives on wealth creation in today's market. He offered an in-depth look at how the fund house prepares Indian investors for the future through its focused, growth-oriented investment strategy. Moderated by Sridhar Janada, the conversation explored the philosophy underpinning MOAMC's high-performing funds, its unique position in the mutual fund landscape, and the mindset investors—especially Gen Z—need to cultivate in an age of compounding, volatility, and rapid market the context, Agrawal noted MOAMC's emergence as a differentiated player in India's vibrant mutual fund industry. 'We are a young AMC and, you know, being young, you learn from people who have been there before and have done it all. So we did that,' he reflected. Yet the company has not shied away from bold bets. 'We have a few firsts to our credit… focused, high-conviction investing, which we think is a very, very premium portfolio construct.'The firm's philosophy draws heavily from the QGLP (Quality, Growth, Longevity, Price) framework pioneered by Motilal Oswal's co-founder Ramdeo Agrawal. 'This is one house that is very unique in alignment of interest… a lot of the firm's money is invested in our funds. So while we have crossed ₹1.5 lakh crore AUM, over ₹8,000 crore may be house money,' said Agrawal, highlighting how skin in the game deepens much of MOAMC's growth has been attributed to performance, Agrawal believes consistent communication plays an equally important role. 'Performance may be the first thing that makes people look at us… but what we are also trying to do at the same time is to explain what we are doing.'MOAMC's equity-only strategy is by design, not default. 'We run funds which are focused on high conviction, but at the same time very different from the index. Our tracking error is very high—some funds have over 90% deviation from the index. We are not somebody you should think is a consistent, close-to-index performer.'He added that for investors seeking more predictable outcomes, MOAMC offers passive alternatives. 'If you want close to index performance… Passive funds are a cheaper way of attaining the same goals. For actively managed funds, we think our constructs are very different. Come to us for growth. If you can digest volatility, we are good for you.'The tagline 'High Quality, High Growth' is backed by rigorous fund management principles. 'It comes from the QGLP philosophy of the house… ultimately markets follow earnings growth,' explained Agrawal. 'If the business grows in sales, more in profits, even better in cash flows—and does that over a long period of time, clearly the value of the business has increased.'MOAMC's strategy is to identify narrow pockets of high-growth opportunity across the Indian economy. 'We are a medium-sized house. Our funds are small. It is possible for us to position ourselves in the nooks and corners of the market which offer this kind of growth,' he said, citing themes like electronic manufacturing, renewables, new tech, luxury, and capital markets as key areas of recent fund performance, Agrawal offered a transparent view: 'FlexiCap is ranked one now for three years… LMC is ranked one for all periods of its existence… Multicap has had a stellar performance.'However, he reiterated that outperformance comes with inherent volatility. 'Don't expect close to index numbers from us. We are not built for that.' Instead, MOAMC encourages investors to pair growth-focused funds with value strategies to balance their portfolios over duality—embracing volatility while delivering alpha—is at the core of MOAMC's communication strategy. 'This is the time for alpha… We say money is being made this way; this is how we invest. There is probably a higher predictability of performance.'Looking ahead, Agrawal was bullish on both the Indian economy and mutual fund penetration. 'Equities as an asset class have very low penetration in India… below 5%. As per capita income grows, it converts a country of savers into a country of investors. That journey has started.'He believes mutual fund growth will outpace GDP growth in the coming years. 'The fund industry will grow significantly faster than the economy itself… We are very positive about the outlook. This is just the beginning.'In closing, Agrawal delivered a compelling message to young investors: 'Over a long period of time, what makes you money is the ability of the business to keep compounding earnings… focus on quality in combo with growth.'He advised caution against relying on external funding for business expansion. 'If you are financing your growth through internal accruals, the predictability and sustainability of that growth is very high… The purest sense is that the organic growth you generate is constrained by your return on invested capital.'Longevity, he added, is key. 'Longevity is super important. You start with 'L' in QGLP—spaces, which will afford you longevity of growth. One-period growth is of very little use.'For Motilal Oswal AMC, future-proof investing is about more than just chasing returns. It is about discipline, conviction, and clarity of purpose—anchored in a philosophy that sees volatility not as risk, but as Agrawal summed up: 'Alpha is here to stay… and we believe the time for growth investing has come.'
