Over the last three years, a few equity funds from Motilal Oswal Mutual Fund have stood out for delivering strong returns despite volatile market conditions. Its large & midcap, flexi cap and ELSS schemes have topped their respective categories based on 3-year performance, drawing attention from long-term investors. Here is a closer look at how these three funds have performed across other timeframes and what their risk profile indicates.
Here’s a closer look at how these three funds have performed across timeframes and what their risk profile tells investors.
Motilal Oswal Large and Midcap Fund – Direct Plan – Growth: Strong 3-year and 5-year outperformance
The Motilal Oswal Large and Midcap Fund – Direct Plan has delivered 25.05% returns over the last three years, making it a topper in the large & midcap category.
The fund’s strong showing is not limited to the medium term. Over a longer horizon, it has continued to outperform its benchmark.
5-year return: 22.64% CAGR
Benchmark (BSE Large Mid Cap TRI): 14.71% CAGR
This near 8 percentage point annual outperformance highlights the fund’s ability to combine large-cap stability with mid-cap growth.
Risk profile check
The fund falls in the Very High Risk category. With a beta of 1.16, it tends to be more volatile than the market. However, a Sharpe ratio of 1.02 and alpha of 7.83 indicate strong risk-adjusted performance and meaningful benchmark outperformance driven by active stock selection.
Motilal Oswal Flexi Cap Fund – Direct Plan – Growth: Consistent returns across market cycles
The Motilal Oswal Flexi Cap Fund – Direct Plan has delivered 23.06% returns over the last three years, placing it among the top performers in the flexi-cap category.
Across longer periods, the fund has delivered steady double-digit returns, broadly tracking its benchmark.
5-year return: 14.87% CAGR (Benchmark: 15.38%)
7-year return: 14.36% CAGR (Benchmark: 15.57%)
10-year return: 14.70% CAGR (Benchmark: 15.47%)
Risk profile check
Despite being classified as Very High Risk, the fund has shown relatively controlled volatility. A beta of 1.00 suggests market-like movement, while a Sortino ratio of 1.33 points to effective downside risk management. The fund’s alpha of 5.74 reflects consistent value addition over the benchmark.
Motilal Oswal ELSS Tax Saver Fund – Direct Plan – Growth: High returns with tax benefits
The Motilal Oswal ELSS Tax Saver Fund – Direct Plan has emerged as a strong performer in the tax-saving category, delivering 23.33% returns over the last three years.
The fund has also outperformed the benchmark comfortably over longer periods:
5-year return: 19.91% CAGR (Benchmark: 15.38%)
7-year return: 18.57% CAGR (Benchmark: 15.57%)
10-year return: 18.16% CAGR (Benchmark: 15.47%)
Apart from performance, the fund offers Section 80C tax benefits with a mandatory 3-year lock-in, making it a popular choice among long-term investors.
Risk profile check
With a beta of 1.22, the fund tends to amplify market movements. While volatility remains high, a positive alpha of 5.29 indicates consistent outperformance driven by active management.
What investors should take away
Motilal Oswal’s large & midcap, flexi cap and ELSS funds have delivered category-leading 3-year returns, supported by strong stock selection and a focused investment strategy. While the large & midcap and ELSS funds have also shown clear long-term outperformance, the flexi-cap fund has offered steadier, benchmark-aligned returns across cycles.
These funds are best suited for long-term investors with a high risk appetite who can stay invested through market ups and downs.
Caution for investors
Past performance does not guarantee future returns. Mutual fund performance depends on several factors including market conditions, fund manager strategy, sector exposure and macroeconomic trends. Investors should assess their risk tolerance, investment horizon and financial goals before investing, or consult a financial advisor if needed.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.