Motilal Oswal AMC has long been a trusted name for mutual fund investors. The fund house offers a variety of equity funds, debt funds, and hybrid funds. The fund house has around 75 schemes, with 64 of them equity plans, running across categories. In several categories like large-cap, multi-cap, small-cap and large & midcap, Motilal Oswal schemes have topped the 1-year return chart. In this write-up, we will review the one-year performance of five Motilal Oswal’s low-expense direct plan equity funds that have outperformed their category averages and benchmarks over the past year.
Five Motilal Oswal equity funds with expense ratios ranging from 0.6% to 0.65% are: Motilal Oswal Multi Cap Fund (0.6%), Motilal Oswal Small Cap Fund (0.61%), Motilal Oswal Business Cycle Fund (0.62%), Motilal Oswal ELSS Tax Saver Fund (0.65%), and Motilal Oswal Large and Midcap Fund (0.65%). For active mutual funds, an expense ratio below 1 is always considered good as the fees for actively managed funds are generally on the higher side in comparison to passive funds.
One-year performance of 5 Motilal Oswal equity funds (direct plans) with low expense ratio
Motilal Oswal Multi Cap Fund: It delivered a one-year return of 10.30%. Meanwhile, the average return for this category was -1.99%, and the benchmark Nifty 500 Multicap 50:25:25 TRI returned -4.57%. This fund also emerged as the category topper.
Motilal Oswal Small Cap Fund: The fund gave a return of 2.96%, while the category average was -5.39% and the NIFTY Smallcap 250 TRI was -6.40%. This fund also topped the category chart.
Motilal Oswal Business Cycle Fund: It delivered a return of 13.67% in 1 year, while the benchmark NIFTY 500 TRI returned -2.68%.
Motilal Oswal ELSS Tax Saver Fund: The fund generated a return of -1.92%. The ELSS category average return has been -3.1% and the Nifty 500 TRI was -3.35%. In this category, only DSP ELSS Tax Saver Fund outperformed the Motilal Oswal ELSS Tax Saver Fund, although its return was also negative.
Motilal Oswal Large and Midcap Fund: It gave a 2.34% return over 1 year. Compared to this, the category average return has been -5.81% and the BSE Large Mid Cap TRI at -3.31%.
Past returns not a guarantee for future performance
When the market is going through difficult times, funds with lower expense ratios prove more beneficial for investors. The Indian equity market has faced multiple bouts of headwinds over the past year, leaving many of the equity mutual fund categories with negative average returns. In times of bad markets, a fund with a lower expense ratio can make your return look decent, as a moderate or low charge has a positive impact on net returns.
However, investors should not focus solely on expense ratio and returns. Other important aspects such as portfolio diversification, the fund manager’s track record, and the investment horizon should also be considered when selecting a fund. Remember, past returns only reflect past performance and are not a guarantee of future performance.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.