Motilal Oswal Multi Cap Fund

The fund delivered a 1-year XIRR of 7.25%, which is significantly below the multi-cap category average of 15.06% for the same period. Over the long term, the fund's CAGR has consistently outperformed the NIFTY 50 benchmark, with a 10-year CAGR of 3.87% versus 0.26% for the benchmark, though the absolute returns remain modest. The fund's 1-year rolling return of 7.38% is also lower than the category average, indicating recent underperformance relative to peers.

The fund exhibits a maximum drawdown of -0.24%, which is very shallow, and an average drawdown of -0.07%, indicating low downside volatility. However, the maximum drawdown duration of 194 days and recovery time of 126 days suggest that the fund can take over six months to recover from peak-to-trough declines. The Calmar ratio of 0.31 for the 1-year period is low, reflecting modest risk-adjusted returns relative to the drawdown experienced.

The fund holds a concentrated portfolio of 32 stocks, with the top 10 holdings accounting for about 46.7% of NAV. The largest holding is Kalyan Jewellers at 6.02%, followed by HDFC Bank and Shaily Engineering, indicating a blend of consumer, banking, and industrial exposure. Sector-wise, Banks (15.5%), IT Software (10.5%), and Consumer Durables (10.5%) dominate, with a notable tilt towards financials and technology, while the fund also has meaningful exposure to chemicals and petrochemicals.

The fund's 1-year XIRR of 7.25% is roughly half the category average of 15.06%, placing it in the lower quartile of multi-cap funds for recent performance. Over longer horizons, the fund's CAGR has been positive but low, and it has consistently underperformed the category average SIP XIRR across all time frames (e.g., 3.87% vs 18.09% for 10 years). This suggests that the fund has struggled to keep pace with its multi-cap peers, despite its benchmark outperformance.

This fund may suit investors with a long-term horizon (7+ years) who are comfortable with moderate volatility and seek a diversified multi-cap approach that can outperform the NIFTY 50 over time. However, given its recent underperformance versus the category, it is more appropriate for investors who prioritize benchmark-relative returns over peer-relative performance and are willing to accept lower absolute returns. It is not ideal for those seeking high short-term returns or who are sensitive to underperformance relative to category averages.

• Consistent outperformance over the NIFTY 50 benchmark across all time horizons, with alpha ranging from 2.63% (15Y) to 16.00% (1Y).
• Strong upside capture of 117.34% and downside capture of 97.3% (1Y), indicating the fund participates more in market upswings while protecting on downswings.
• Very low maximum drawdown of -0.24% and average drawdown of -0.07%, suggesting effective downside risk management.

• Significant underperformance versus the multi-cap category average, with 1-year XIRR of 7.25% vs 15.06% category average, and similar gaps across all time periods.
• Low absolute returns over the long term (e.g., 10-year CAGR of 3.87%) may not meet the inflation-beating expectations of many equity investors.