These two Motilal funds have braved the recent market volatility

We analyse why

Equity funds struggle, two Motilal Oswal funds stand strong

Last week has been rather forgetful for most equity funds. Less than 10 per cent of diversified equity funds have been able to prevent a fall.

Almost none of them were spared from the bloodshed on Monday (February 12, 2024), where more than 80 per cent of funds fell by over one per cent and only 125 of the top 750 stocks eked out positive returns.

But amid the sea of red were two Motilal Oswal funds that remained (relatively) unscathed: Motilal Oswal Midcap and Motilal Oswal Flexi Cap .

Motilal's mid-cap fund was up by 0.36 per cent on Monday - the day the markets bled. Meanwhile, the flexi-cap fared slightly worse, falling 0.13 per cent on Monday (February 12). But looking at that day's chaos, a minor fall is a major coup for Motilal Oswal.

So, what's their secret? How did they withstand the Monday meltdown?

If you analyse their portfolio, you'd see that the two funds have 62 per cent of the money invested in the same set of 13 stocks. Astonishingly, nine of them were in the green on Monday.

In fact, the flexi-cap fund had half of its money in stocks that stayed up, while the mid-cap fund had an even more impressive 59 per cent.

The nine ninjas

These stocks in the two Motilal funds braved the Monday (February 12, 2024) chaos.  

Company Returns (%) Allocation in  Motilal Oswal Midcap (%) Allocation in Motilal Oswal Flexicap (%)
Zomato 2.9 7 6.9
Coforge 2.5 6.3 7.2
Balkrishna Industries 2 5.3 4.7
CG Power 1.6 5.9 0.1
Navin Fluorine 1.5 1.6 0.8
Tube Investments 1.1 9.7 9.7
Polycab 0.9 2.5 4.8
Persistent Systems 0.8 10.2 9.6
Mphasis 0.5 0.7 0.6
Note: Allocations based on portfolio disclosures (January 31, 2024). Returns are of February 12, 2024.

What's more, only 11 per cent of the money was in stocks that fell by more than two per cent.

Clearly, Motilal's concentrated and coordinated stock calls have done the trick, at least for now.

Also read: This new fund has gone where few others dare

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