Motilal Oswal Focused Fund

Motilal Oswal Focused Fund has delivered a 1Y XIRR of 17.99% and long-term XIRR of roughly 13% across 5Y to 12Y horizons, consistently beating the NIFTY 50 on all benchmark periods (e.g., 5Y fund CAGR of 9.98% vs 5.16% benchmark). However, its SIP XIRR trails the category average by 2-3 percent points across most horizons, with the 5Y XIRR of 13.04% versus a category average of 15.5%. This suggests strong lump-sum performance relative to the index but below-par SIP outcomes versus focused-fund peers.

The fund shows favorable downside behavior toward the index, with downside capture of about 85% across long windows versus upside capture near 90%, and beta near 0.90, indicating it falls less than the benchmark during declines. The Calmar ratio stays steady between 0.39 and 0.46 across horizons, reflecting consistent risk-adjusted returns. The 1Y drawdown was minimal at -0.35% with a 40-day duration, though 8 drawdown events exceeding 10% over the full history point to meaningful periodic corrections typical of equity funds.

The portfolio holds 28 stocks with a top-10 concentration of about 38.85% of NAV, typical for a focused fund where position sizes are capped around 5%. Top allocations include One 97 Communications (5.05%), Acutaas Chemicals (4.83%), and Titan (4.26%), with Electrical Equipment at 11.4% and Banks at 12.1% as the largest sector exposures. Diversification across fintech, chemicals, consumer, capital markets, and healthcare offers breadth, though the meaningful Electrical Equipment cluster (MTAR, CG Power, BHEL) introduces thematic concentration risk.

On SIP XIRR, the fund underperforms category averages at every measured horizon — for example, 3Y XIRR of 12.84% versus 15.77% category average — but outperforms like-for-like lump-sum comparisons against the benchmark with consistent alpha in all seven windows shown. The 1Y alpha of 29.17% versus NIFTY 50 is exceptional and partly reflects the benchmark's -10.92% CAGR that year. Calendar-year returns show reasonable consistency, with negative years in 2018 (-2.49%) and 2025 (-0.84%) but strong gains in 2014 (46.59%) and 2017 (33.29%).

This fund suits investors with a high risk appetite and at least a 5-7 year horizon who value a concentrated, conviction-driven portfolio with downside protection relative to the index. Its steady long-term CAGR of roughly 13% versus the benchmark's approximately 9-10% makes it attractive for lump-sum or index-plus-alpha seekers, but SIP investors should be aware it has lagged focused-fund category averages. Investors should be comfortable with sector tilts, notably in electrical equipment and financials.

• Positive alpha over the NIFTY 50 in all seven benchmark periods, with 5Y CAGR of 9.98% versus 5.16% for the benchmark
• Favorable downside capture of roughly 85% across long horizons versus upside capture near 90%, meaning it loses less than the index in declines while keeping most of the gains
• Consistent long-term return profile with 5Y to 12Y XIRR and rolling returns clustered around 12.8%-14.2%, and a reasonably low 0.99% expense ratio in the direct plan

• SIP XIRR trails the focused-fund category average at every horizon, including 3Y XIRR of 12.84% versus a 15.77% category average
• Concentration risk from a focused 28-stock portfolio with a notable 11.4% allocation to Electrical Equipment and a high-conviction bet on One 97 Communications as the top holding
• Eight drawdown events exceeding 10% over the fund's history, with a recovery from the 1Y max drawdown taking 226 days, indicating periodic patience is required