Latest news with #PrateekAgrawal
Time of India
27-05-2025
- Business
- Time of India
No value in market, it's time of growth investors; focus on alpha generation in new spaces: Prateek Agrawal
Prateek Agrawal , MD & CEO, MOAMC , highlights a period of simultaneous emergence of high-growth sectors , reminiscent of the '90s software boom. He emphasizes focusing on alpha generation in these new spaces, rather than index performance. MOAMC portfolios encompass diverse growth areas like EMS, renewable energy, defence, NBFCs, capital markets, luxury, and new tech, seeking growth opportunities with sensible valuations. There seems to be a bit of a pressure on the higher levels for the benchmark indices though we have seen almost a double-digit return from the April lows. What is the big theme that you are catching for the Indian markets right now? Prateek Agrawal : For the Indian markets, the thing to look forward to is to benefit from low oil prices. Government finances could look significantly better than budgeted because lower oil means some bit of gains goes to the population, some bit of gains goes to the government. Government finances look good. Hopefully, either the growth, the spending increases or the borrowing reduces which means further downward pressure on interest rates. So, lower inflation and lower interest rates. We had two rate cuts. We may have two more and that makes it very good for risk asset classes like equity. So, that is the threat to look forward to for India. There are uncertainties, for example will the US do a deal or not? But the direct impact of that at least in the immediate term on India should be very low. We export just about $80 billion in a $4.1 trillion economy and spaces that may benefit if the UK deal is of any guidance are hardly there in the market. We are one economy which is very inward looking and that is a positive in a period like this, where so much is happening in the world. That is what it is for India. When you say lower oil prices, are you saying buy banks and buy rate sensitives, or buy consumers sensitives because less oil prices is good for consumers, for companies and for margin expansion? Prateek Agrawal: Yes, some bit of benefit will go into manufacturing and that is something we like; to airlines maybe. So, that is import parity pricing on cost. If the traffic increases, there would be higher margins, but not for banks, as if more rate cuts happen than anticipated, then the pressure on NIMs will start to manifest itself. NBFCs, yes, for the same reason that their input is money from banks and the cost of that would reduce. Live Events You Might Also Like: Markets likely to trend and hit new highs in H2; 3 themes to deliver multi-year returns: Nitin Raheja This market right now does not have too many concerns barring that centred around valuation. Tariffs, macro, geopolitics are getting sorted out. Globally, wars are getting sorted out. Are we nearing the peak of good news because markets climb the wall of worry and come down on a ray of hope? Prateek Agrawal: We have seen investors still worrying a hell of a lot because a lot of events in the recent past have caused turmoil. The flows into mutual funds were not very strong in the last two months. This month could be an encore. So, it is not all positive. But one positive which is happening and which you missed is a good result season versus what was expected. A 3-4% earnings growth was expected, but we are getting much better earnings growth. So, there are things to fuel the rally forward even if we talk about the immediate term. Weaker dollars, DXY at sub-99 has happened after a long while, and that points to the dollar moving away from the US all over the world and if India sticks out as being slightly better, then we should get some share of that. So, foreigners would also be buying more than usual. Domestics will continue to buy. The IPOs are still some distance away. The big momentum would be some distance away. It is good for the secondary market. A one, one-and-a-half-month period is a sweet spot for the secondary market. The earning season is behind us; the index has crawled back to the 25K mark. There is good buoyancy even in the broader market. Where do you still see value and growth visibility coupled with that on the table? Prateek Agrawal: Simple, there is no value. If you are hunting for value, this is not the market for you. Hunt for growth. There are two styles of making money, the value style and the growth style. The best of value is behind us. Being growth investors, lower interest rates with continued good growth outlook is a very good combo for growth investing . We think our time has come. You Might Also Like: 4 new IPOs coming; should you go for them? Here's how Abhishek Gaoshinde rates them When you say there is no value in the market, then why should one be invested in mutual funds? Prateek Agrawal: Kyoki growth toh hai (But there is growth). This is a period in the life of a country when several new spaces which offer strong growth not for one year but multiple years are all coming up at once. In the '90s, you got software. New space delivered huge growth for several years. In the same light, if we see the last five years and it is happening as we speak, many newer spaces are emerging in the market which offer the same combo. We have been saying this now like a parrot every time you have me that it is not a period of the index, it is a period of alpha. It is a period of these newer spaces where growth and sustenance of growth is of another order versus the index. You have been bullish on the EMS space as well. How do you see the value, valuations, as well as the growth within this particular segment? From here on. how do you see the stocks moving as well if at all? Prateek Agrawal: What we run is portfolios not single stock, single sectors. All the growth spaces find representation in our portfolio. Yes, EMS is there. Yes, renewable energy is there. Yes, defence is there. Yes, NBFCs are there. Capital market plays are there. Luxury is there and more. New tech is there. As for EVs, till now we have not found a name, and so it is not there but that is where growth is. Now, we have to find spaces where growth corrected for valuations make sense, which is what managers do. If you look at our fund house, these are spaces you will find in practically all of our funds. That is the method in the madness of what we do. We are out and out growth investors. We think our portfolios are some of the highest growth in earnings portfolios in the country.
Time of India
21-05-2025
- Business
- Time of India
NFO Insight: Can Motilal Oswal Services Fund help you gain stability and long-term growth potential?
Motilal Oswal Mutual Fund 's latest new fund offer of Motilal Oswal Services Fund is open for subscription and will close on June 3. The fund is an open-ended equity scheme investing in the services sector The scheme will open for continuous sale and repurchase on June 16. Motilal Oswal Services Fund aims to generate long-term capital appreciation by investing in companies that derive the majority of their income from businesses operating in the services sector of the economy. CEO comment on launch Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Julio: Liquidación de boletos de cruceros sin vender (Mira precios) Cruceros para mayores | Anuncios de Búsqueda Más información Undo 'India's services sector has consistently demonstrated strong and resilient growth, emerging as a key driver of the country's economic development. With its rising contribution to GDP, robust export potential, and growing digital and consumer-driven demand, we believe the sector may offer compelling long-term investment opportunities. Our new Sectoral fund is designed to tap into this structural growth story and enable investors to gain exposure to the services-led transformation of India's economy,' said Prateek Agrawal, MD and CEO, Motilal Oswal Asset Management Company. Fund manager's take 'Services sector encompasses a wide range of industries—benefiting from rising incomes, urbanization and digital adoption. With structural tailwinds and improving export competitiveness, we see long-term potential across this sector. The fund will be benchmarked against Nifty Services Sector Total Return Index (TRI) which has shown an upward trend over the 11-year,' said Bhalachandra Shinde , Associate Fund Manager, Motilal Oswal Mutual Fund. Live Events 'From an initial level around 1000 in April 2014, the index has steadily increased, reaching a level of 4518 by April 2025. Our investment approach will focus on identifying quality businesses with scalable models and strong fundamentals that are well-positioned to benefit from this sector,' he added. Experts take on new launch Experts typically ask investors to avoid investing in NFOs unless they offer something unique. The uniqueness could be that the scheme is offering an investment option that is not available in the market or offering something extra to an existing option. Otherwise, the experts believe investors are better off with an existing scheme with a long performance record. This is because you have some historical data to base your investment decision. You don't have any data when it comes to new offerings. According to an expert, the fund being a sectoral or thematic fund is unique in its way that unlike other thematic/sectorial funds, it is not concentrated in a single category but diversified across a broad range of industries, such as the infrastructure theme. Cautioning the investors about the fund or sector/theme, Arjun Guha Thakurta, Executive Director, Anand Rathi Wealth Limited recommends that investors should avoid investing in this sector or theme, 'as we have not seen much existing funds in this theme to understand the theme's performance across different market cycles. Additionally, thematic/sectoral funds tend to undergo cyclical performance.' Another expert, post sharing India's services growth mentions that as we have not seen much existing funds in this theme to understand the theme's performance across different market cycles. Additionally, thematic/sectoral funds tend to undergo cyclical performance. 'As a smart investor, if you believe in India's growth story then service sector stocks should be a part of your core portfolio. So yes, market corrections should be seen as an opportunity to invest in promising service sector companies,' said Shruti Jain, Chief Strategy Officer, Arihant Capital Markets The scheme will be benchmarked against Nifty Services Sector Total Return Index and will be managed by Bhalachandra Shinde, Ajay Khandelwal, Atul Mehra, Rakesh Shetty, and Sunil Sawant. The scheme aims to generate long-term capital appreciation by investing in equity or equity related investments of companies that are engaged directly or indirectly or expected to benefit from the growth and development of the services sector in India. Emerging sector According to MOAMCs internal research, India's services sector has emerged as the most consistent and resilient contributor to the country's Gross Value Added (GVA), reflecting stable performance. Between FY23 and FY25, the sector achieved growth of 8.3%, underpinned by a surge in services exports, which accelerated to 12.8% in April–November FY25 from 5.7% in FY24. The sector's significance is further highlighted by its massive 109-fold increase in contribution to total GVA since FY14, according to a press release by the fund house. As a share of total GVA, the sector grew from 52% in FY16 to 55% in FY24, peaking at 56% in FY23. This highlights the services sector's growing role in India's economic output and its contribution to employment, currently supporting nearly 30% of the workforce. On the global stage, India ranks 7th in services exports, with 4.3% share. Notably, the sector has remained in the expansionary zone for 41 consecutive months since August 2021, underscoring its stability and long-term growth potential, the release said. The minimum investment amount for lumpsum is Rs 500 and in multiples of Re 1 thereafter. For monthly SIP, the minimum investment amount is Rs 500 and in multiples of Re 1 thereafter with minimum 12 installments. The scheme will allocate 80-100% in equity and equity related instruments of companies which derive a majority of their income from business in the services sector of the economy, 0-20% in equity and equity related instruments of other than services sector companies and overseas securities, 0-20% in debt and money market instruments (including cash and cash equivalents), 0-10% in units of REITs and InvITS, and 0-5% in units of mutual funds . Should one allocate? Based on the investment pattern of the fund, Thakurta firmly recommends investors to avoid investing in sectoral/thematic funds as these tend to undergo cyclical performance as they are highly concentrated in only a single category of industries. He instead recommends investors to invest in diversified equity funds, such as market cap-based funds and strategy-based funds, such as value, contra & focused, which give exposure across the range of sectors & categories and help to ride across the market cycles. However, Jain recommends that the service sector should have a significant allocation to every investor's portfolio who is betting on India but the actual allocation would depend on your risk profile, and other factors as for any equity investment, one should have a horizon of 6-10 years to mitigate the volatility and get real benefit. One should wait for at least 3-5 years to assess the performance of a service sector based fund before investing but investing in an old fund with a proven track record is a better choice than picking a NFO , especially if a similar fund is there in the market and if you invest in a diversified fund, it will automatically have a good percent of the portfolio invested into service sector stocks, considering how these companies have shown strong growth in last two decades said Jain. The scheme is suitable for investors who are seeking capital appreciation over the long term and investing predominantly in equities and equity related instruments of companies engaged in the services sector of the economy. Apart from Motilal Oswal Services Fund, there are two other funds based on this sector who have a track record of being in the market in the last five years. ICICI Prudential Exports & Services Fund has offered 28.66% return in the last five years and Sundaram Services Fund offered 29.68% return in the same time period. In the last one year, the schemes have offered 14.26% and 19.17% respectively. With two funds available for investment based on the service sector and this new NFO, Thakurta believes that the sector is expected to perform well and remain a structural growth engine, and emerge as a key driver of both domestic consumption and exports. 'With rising urbanization, digital penetration, and formalization, sub-sectors like financial services, healthcare, IT, telecom, and logistics are poised for multi-year growth. However, based on this, investing in a single sector is not recommended as it will increase the concentration risk associated with the performance of a single sector,' he adds. One should always invest based on their risk appetite, investment horizon, and goals. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
Time of India
30-04-2025
- Business
- Time of India
Multi asset category sees strongest inflows in March 2025: Motilal Oswal AMC Study
Multi Asset Mutual Funds have continued to attract inflows in the hybrid category, securing approximately 74% of the net inflows during March 2025, according to Motilal Oswal Asset Management Company (MOAMC) latest study 'Where the Money Flows'. #Pahalgam Terrorist Attack PM Modi-led 'Super Cabinet' reviews J&K security arrangements Pakistan's General Asim Munir is itching for a fight. Are his soldiers willing? India planning to launch military strike against Pakistan within 24 to 36 hours, claims Pak minister Balanced advantage and aggressive hybrid funds recorded healthy inflows of around Rs 2,000 crore and Rs 1,000 crore, respectively. Conservative Hybrid was the only category with a notable net outflow of Rs 500 crore, implying a reduced preference for debt-heavy hybrid allocations during the quarter. Also Read | MF Tracker: HDFC Small Cap Fund turns Rs 10,000 SIP to Rs 1.14 crore in 17 years Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thousands Are Saving Money Using This Wall Plug elecTrick - Save upto 80% on Power Bill Click Here Undo The report takes a closer look at how investors are allocating funds across different segments of the mutual fund (MF) industry for the quarter ending March 2025. The mutual fund industry recorded estimated net inflows of Rs 25,000 crore. While passive funds attracted Rs 33,000 crore in net inflows, active funds saw a net outflow of Rs 8,000 crore—largely due to redemptions in debtoriented categories rather than equity. Debt funds witnessed Rs 1,10,000 crore in outflows, reversing from Rs 38,000 crore of inflows in the previous quarter. This was mainly driven by advance tax payments made by corporates, which led to major redemptions from Constant Maturity Funds (Rs 1,03,000 crore). The industry also witnessed 73 new fund launches, gathering Rs 13,067 crore through NFOs, a meaningful portion of the net inflows during the quarter. Live Events 'The mutual fund industry's Assets Under Management (AUM) rose to Rs 65.74 lakh crore in March 2025, a robust 23.11% increase year-on-year from Rs 53.40 lakh crore in March 2024. The steady rise in Mutual Funds AUM reflects a gradual shift in household savings towards financial assets, supported by growing comfort with market-linked investments and a broader awareness of mutual fund products. Continued flows through Systematic Investment plans (SIPs) and a more accessible investment ecosystem have also contributed to the industry's sustained growth,' said Prateek Agrawal, MD and CEO of Motilal Oswal Asset Management Company Ltd (MOAMC) said. 'In FY25, passive funds saw a 21% year-on-year increase in AUM, rising 21% year-on-year to Rs 11.13 lakh crore. This growth was driven by the continued adoption of rule-based investing and the preference for low-cost structures. While equity-based passive products led the way, debt ETFs also saw modest growth with AUM at Rs 97,000 crores, indicating early signs of broader diversification within passive strategies,' said Pratik Oswal, Chief of Business Passive Funds, Motilal Oswal Asset Management Company Ltd (MOAMC). During the quarter, equity funds remained the key contributor, with net inflows of Rs 1,17,000 crore, reflecting steady interest in long-term growth assets. Active Equity led the way with net inflows of about Rs 92,000 crore, followed by Rs 25,000 crore in passive equity. Passive equities now account for 21.5% of total net flows within the equity category. Overall, at 64% of market share, Broad-Based funds took away the major share of equity net inflows. The net flows share of Broad-Based funds in passive equities increased from 66% to 84% (QoQ), while in active equities, it increased from 70% to 72%(QoQ). Among Active Equity, net inflows in Thematic funds continue to decline, settling at around Rs 9,000 Cr. Within Passive Equity, Broad-Based funds saw higher inflows, with Factor funds holding a 15% share and Thematic funds at 2.7%. Also Read | Akshaya Tritiya: How gold ETFs performed in last 10 calendar years Among the active broad-based segment, flexi cap and small cap funds saw net inflows of Rs 16,500 crore and Rs 12,000 crore respectively, followed by midcap funds at Rs 11,700 crore. For Passives, investors continued to prefer large cap for their allocations, with the category receiving 90% of net inflows. However, there was a marginal decline in the share of flows, with some shift towards the mid-cap and small-cap segments. Overall, net inflows in thematic mutual funds declined from around Rs 14,000 crore to Rs 8,400 crore (QoQ). Consumption and Infrastructure themes together garnered inflows of around Rs 2,200 Cr in the thematic space, while the Manufacturing theme experienced a marginal outflow. Defence theme saw investor interest, with net inflows of around Rs 1,000 crore. Passively managed Thematic funds also witnessed the emergence of new themes like Capital Markets and EV Debt funds saw Rs 1,10,000 crore in net outflows, a reversal from Rs 38,000 crore inflow last quarter. Constant Maturity funds dominated the outflows, making up around Rs 1,03,00 crore overall. This was followed by categories like Floating Rate and Gilt, recording outflows of around Rs 2,600 crore and Rs 2,500 crore, respectively. Target Maturity funds, on the other hand, recorded net outflows of around Rs 2,800 crore Active Liquid funds witnessed net outflows of around Rs 52,000 crore, primarily driven by corporate advance tax disbursals in March. Passive Liquid Funds inflows stood at Rs 1,400 crore, reflecting steady institutional deployment. This was followed by Overnight & Ultra Short Duration categories, recording outflows of Rs 30,800 crore and Rs 12,400 crore respectively. Generally, investors use debt funds with maturity up to 1 year to park excess cash in the short term, leading to high volatility in inward & outward flows The international category experienced minimal flows across segments, largely due to restrictions on new investments in such schemes imposed by the RBI threshold. Broad-based funds recorded marginal net inflows of Rs 100 crore. Passively managed thematic international Funds saw net outflows of Rs 800 crore.
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Business Standard
24-04-2025
- Business
- Business Standard
Motilal Oswal launches equity fund tracking India's infrastructure growth
Motilal Oswal Mutual Fund has launched a new thematic equity scheme tracking India's infrastructure sector. Motilal Oswal Infrastructure Fund opened for subscription on Wednesday and will close on May 7, 2025. It will invest in companies 'directly or indirectly involved' in infrastructure development. 'India's infrastructure growth is gaining momentum,' said Prateek Agrawal, managing director and chief executive officer of Motilal Oswal Asset Management Company (MOAMC), in a statement. 'The fund provides investors an opportunity to participate directly in this transformation across infrastructure sectors, aiming for long-term value.' The fund will invest in roads, railways, energy, and urban, social and digital infrastructure. It will benefit from global trends such as supply-chain rebalancing, and domestic policies like Make in India manufacturing programme and production linked incentive scheme. NFO period: April 23 to May 7, 2025 Benchmark: Nifty Infrastructure Total Return Index Fund Managers: Ajay Khandelwal, Atul Mehra, Shinde (equity); Rakesh Shetty (debt); Sunil Sawant (overseas) Options available: Growth and IDCW (Payout & Reinvestment) Objective: Long-term capital appreciation through equity investments in infrastructure-linked companies The infrastructure push is supported by increased government allocation, which is expected to rise by 7.4 per cent in FY26, according to MOAMC. Capital expenditure will account for 22.1 per cent of total government spending, according to the company's research. The infrastructure outlay for FY20-25 was around Rs 111 trillion, up from Rs 57 trillion in FY13–19. According to MOAMC, while the scheme offers a strong long-term opportunity, investors should also consider the risks involved in sector-specific investments. All mutual fund investments are subject to market risks, and potential investors are advised to read the scheme-related documents carefully.
