Motilal Oswal Manufacturing Fund
Direct · GrowthAI Summary
Motilal Oswal Manufacturing Fund has delivered a 1Y SIP XIRR of 7.95%, well below the category average of 14.1%, indicating underperformance versus sectoral/thematic peers. However, it has consistently outperformed the NIFTY 50 benchmark, posting positive CAGRs across all periods (1Y: 8.52% vs -2.9%) with alpha ranging from 10.4% at 1Y to 1.37% at 15Y. Calendar year returns have been mixed, with 17.5% in 2024, -5.04% in 2025, and 6.81% in 2026.
The fund shows contained drawdown characteristics, with a maximum drawdown of just -0.26% over 56 days and only 2 drawdown events exceeding 10%, though recovery took 200 days. Its 1Y Calmar Ratio of 0.2475 suggests modest risk-adjusted returns relative to the drawdown experienced. Downside capture of 78.16% at 1Y (89.73% at longer horizons) versus upside capture of 93.54% (103.8% longer-term) indicates the fund protects capital better in declines than it captures gains in rallies over the short term.
The portfolio is concentrated with only 27 holdings, led by Reliance Industries (6.25%) and Sun Pharmaceutical (6.19%), with the top 10 holdings comprising roughly 46% of NAV. Sector exposure is heavily tilted toward cyclical manufacturing-linked themes: Automobiles (14.8%), Industrial Products (14.0%), Electrical Equipment (13.6%), and Auto Components (10.9%) together account for over half the portfolio. This concentration aligns with the fund's manufacturing theme but limits diversification benefits.
The fund trails its category significantly on SIP XIRR, with a 1Y return of 7.95% versus the category average of 14.1%, placing it in the lower tier of sectoral/thematic peers. Its consistent positive alpha against NIFTY 50 across 1Y to 15Y horizons demonstrates genuine benchmark outperformance, but this has not translated into peer-beating returns. The gap versus category averages suggests other thematic funds have captured the recent cycle more effectively.
This fund suits investors with high risk tolerance seeking targeted exposure to India's manufacturing and capex theme, rather than core portfolio holdings. A time horizon of at least 5-7 years is advisable given the cyclical nature of autos, industrials, and electrical equipment, which dominate over 53% of the portfolio. Investors should limit allocation to a small satellite portion (5-10%) of their equity portfolio due to sector concentration and the fund's current underperformance versus category peers.
- Consistent positive alpha versus NIFTY 50 across all time horizons, from 10.4% at 1Y to 1.37% at 15Y
- Strong downside protection with downside capture of 78.16% at 1Y and a shallow maximum drawdown of -0.26%
- Focused portfolio of 27 stocks aligned with the manufacturing theme, including quality names like Reliance Industries, Sun Pharma, and Bharat Electronics
- 1Y SIP XIRR of 7.95% significantly lags the category average of 14.1%, indicating underperformance versus thematic peers
- Heavy concentration in cyclical sectors (Automobiles, Industrial Products, Electrical Equipment, Auto Components exceed 53% combined) exposes investors to manufacturing downturns
- Negative calendar year return of -5.04% in 2025 and a 200-day recovery from maximum drawdown highlight potential holding-period pain
Generated on 09-09-2026, 3:34 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.47 L | 7.9% | -19.7% | 31.4% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 7.9% | 14.4% | 14.1% | -6.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 6.5% | 6.5% | -6.2% | 24.1% | -0.00 | -0.00 | 85% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +10.40 | 0.89 | 93.5% | 78.2% | 8.5% | -2.9% |
| 3 Years | +6.81 | 1.01 | 103.8% | 89.7% | 6.2% | -0.5% |
| 5 Years | +4.06 | 1.01 | 103.8% | 89.7% | 3.7% | -0.3% |
| 7 Years | +2.90 | 1.01 | 103.8% | 89.7% | 2.6% | -0.2% |
| 10 Years | +2.03 | 1.01 | 103.8% | 89.7% | 1.8% | -0.2% |
| 12 Years | +1.70 | 1.01 | 103.8% | 89.7% | 1.5% | -0.1% |
| 15 Years | +1.37 | 1.01 | 103.8% | 89.7% | 1.2% | -0.1% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Reliance Industries Ltd | 6.25% |
| 2 | Sun Pharmaceutical Industries Limited | 6.19% |
| 3 | Bharat Electronics Ltd | 5.53% |
| 4 | Maruti Suzuki India Ltd | 4.58% |
| 5 | KEI Industries Limited | 4.22% |
| 6 | Waaree Energies Limited | 4.18% |
| 7 | ABB India Ltd | 3.97% |
| 8 | Shaily Engineering Plastics Limited | 3.80% |
| 9 | UNO Minda Ltd | 3.77% |
| 10 | Gabriel India Limited | 3.66% |