India : Once in a life time opportunity

MOAMC has marquee portfolios which have delivered leading returns & alpha over longer periods, however, the performance in the last couple of years has been low. But, every philosophy sees a tough time, and Motilal Oswal is adopting a few amends or tweaks to its Buy Right – Sit Tight and QGLP Ideologies keeping by and large core as it is, and adopting some refinements, to make it contemporary.

1) Trimming of winners as Price becomes expensive

2) Deeper Role of the Investment Committee: to continuously assess if the QGLP(Quality, Growth, Longevity, Price) thesis is holding true or not, there will be periodic reviews by the committee to ensure the QGLP thesis if violated by stock is gotten rid off.

3) Inclusion mindset: An open and mindset approach, where the investment managers are not just obsessed about what’s there in the portfolio; at the same time, have an inclusive approach, where they are also mindful of what’s not there in the portfolio, and could be evaluated to be added.

4) All 4 factors of QGLP given importance: The committee would want to watch the way the funds are managed so that they don’t overpay a price,. While Quality and Growth remain the point of entry in the business, Longevity, and Price to be evaluated the continuity and/or exit from the portfolio.

As presented by Mr. Navin Agarwal, – “ India is slated to enter this elite of the elite USD 5 Tn club over the next decade. So for investors, it’s imperative to look at this big picture and to draw parallels for equity markets, take guidance from the trajectories of the US, China, and Japan which have seen the transition from $ 2.5 Tn to $ 5 Tn GDP. The US traversed this journey in 10 Years, Japan in 8 years, and China in 5 Years. 

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