This Equity Mutual Fund Generated Positive Returns Every Month in last 12 months

Equity Mutual Funds invests in large cap, midcap, smallcap and global companies based on the investment objective of the fund. While the large cap component in the fund provides stable returns, the other categories can generate high returns, however, comes with high risk. Do you know that this Equity Mutual Fund generated positive returns every month in the last 12 months. It is one of the consistent performing mutual funds in the last 10 years too. In this article we would talk about Motilal Oswal Flexi Cap Fund, its portfolio, performance, comparison with benchmark returns and provide our view about such fund.
Earlier we wrote about 20 Equity Mutual Funds with positive returns every year in the last 10 years. Continuing this trend, this article focusses on mutual funds that generated positive returns every month in the last 12 months.

How did we filtered this equity fund?

We have considered all Equity Mutual Funds in India excluding sector funds and thematic mutual funds.
Filtered the funds that generated positive returns every month in the last 12 months (Jun-23 to May-24).
We could get only one fund i.e. Motilal Oswal Flexi Cap Fund. This fund has generated positive returns (irrespective of the quantum of the value) every month in the last 12 months.

About Motilal Oswal Flexi Cap Fund
The scheme seeks to achieve long term capital appreciation by primarily investing in equity & equity related instruments across sectors and market-capitalization levels.
In simple terms, this fund would invest in large cap, midcap and smallcap stocks.
Motilal Oswal Flexi Cap Fund– Portfolio
This fund currently invests 96% in equity and balance in other instruments.
Its top 10 equity portfolio consists of Jio Financial Services, Persistent Systems, Tube Investments, Polycab, Zomato, Kalyan Jewellers, Coforge, Indus Towers, Cholamandalam Investments and Finance and Bharti Airtel.
As part of other category of investments, it is currently investing in Treasury Bills Repurchase (TREPS).
Motilal Oswal Flexi Cap Fund– Performance Details
Here are the performance details in the last 10 years and these are for direct plans.
#1 – Month on Month Returns in last 12 months

Month
Returns

Jun-23
3.8%

Jul-23
2.6%

Aug-23
4.7%

Sep-23
1.0%

Oct-23
0.1%

Nov-23
6.7%

Dec-23
5.6%

Jan-24
3.1%

Feb-24
3.7%

Mar-24
2.8%

Apr-24
4.2%

May-24
0.2%

#2 – Absolute Returns of the fund

1-Year Return: 39.8%
2-Year Return: 57.3%
3-Year Return: 47.6%
5-Year Return: 80%
10-Year Return: 400% (1 Lac would have turned to 5 Lacs)

#3 – Annualised Returns of the fund

1-Year Return: 39.8%
2-Year Annualised Return: 25.3%
3-Year Annualised Return: 13.8%
5-Year Annualised Return: 12.5%
10-Year Annualised Return: 15.9%

#4 – SIP Returns of the fund

1-Year: 32.8%
2-Year: 29.8%
3-Year: 21.1%
5-Year: 17.8%
10-Year: 13.5%

#5 – 1 Lakh Lump Sum Investment would have turned into

1-Year : 1.40 Lakhs
2-Year : 1.57 Lakhs
3-Year : 1.47 Lakhs
5-Year : 1.8 Lakhs
10-Year : 4.0 Lakhs

#6 – 10K SIP Investment would have turned into

1-Year : Invested 1.2 Lakhs and Current value is 1.40 Lakhs
2-Year : Invested 2.4 Lakhs and Current value is 3.18 Lakhs
3-Year : Invested 3.6 Lakhs and Current value is 4.9 Lakhs
5-Year : Invested 6.0 Lakhs and Current value is 9.37 Lakhs
10-Year : Invested 12 Lakhs and Current value is 24.3 Lakhs

#7 – Rolling Returns perspective:
3 Year Rolling Returns:

Greater than 20% returns – 1% of the times
15% to 20% returns – 29% of the times
12% to 15% returns – 26% of the times
0% to 12% returns – 44% of the times
Negative returns – Zero times

5 Year Rolling Returns:

Greater than 20% returns – Zero times
15% to 20% returns – 12% of the times
12% to 15% returns – 34% of the times
0% to 12% returns – 56% of the times
Negative returns – Zero times

How Motilal Oswal Flexi Cap Fund Performed compared to its benchmark?
One of the best ways to check funds performance is to check with its benchmark. Its benchmark is Nifty 500 TRI.
5 Years Annualised Returns

Nifty 500 TRI – 17.8% (31-May-24)
Motilal Oswal Flexi Cap Fund – 14.4%

Last 1 Year Return

Nifty 500 TRI – 35.1% (31-May-24)
Motilal Oswal Flexi Cap Fund – 57.6%

Conclusion and our view:

This is a flexicap fund that invests 96% in equity and balance in other instruments.
Its equity component is 17% in large cap, 7% in midcap, 19% in small cap stocks and balance in other equity instruments. Like I indicated in earlier article, if you want high returns, you need to take risk. Check 7 High Return Mutual Funds where I am investing in 2024 where I provided the name of the funds.
Fund’s beta is 0.94. It is a measure of the fund’s sensitivity to the market movement. Beta of less than 1 indicates that the fund would have lower swing compared to the ups and downs of the benchmark. Beta of more than 1 indicates that the fund would have wider swings compared to the benchmark.
Alpha is 0.43. It is a measure of extra returns provided by the fund compared to the benchmark. Investors should prefer high alpha funds which can generate higher returns.
One can invest as low as Rs 500 through lump sum and Rs 500 through SIP for 12 months in this fund. While there is no lock-in period, this fund has exit load of 1% if redeemed within 15 days from the date of investment.
The fund size is AUM is Rs 10,021 Crores.
This fund has generated 17% annualised returns since inception. It has beaten its benchmark Nifty500 in the last 1 year, however, it has under performed in the last 5 years.
Check 12 Worst Performing Mutual Funds in the last 3 years.
While the large cap component in this fund provides stable returns, its midcap and smallcap component is high risk and at the same time generates high returns too. While there are better funds too in this flexicap category, high risk investors who want to invest for 5+ years tenure can invest in this fund. Low or moderate risk investor should avoid such funds.

Suresh KP is the Founder of Myinvestmentideas. He is NISM Certified – Investment Adviser and NISM Certified – Research Analyst. He has been analyzing financial markets in the last 20 years.He can be reached at suresh@myinvestmentideas.com Latest posts by Suresh KP (see all)