Latest news with #PrateekAgrawal
Economic Times
2 days ago
- Business
- Economic Times
No chill without volatility: Prateek Agrawal on playing the long game in India's new market era
ET Spotlight Initiative Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads (This article is generated and published by ET Spotlight team. You can get in touch with them on etspotlight@ In an insightful episode of the ETMarkets webinar—known for bringing front-row insights from the biggest minds in investing—Prateek Agrawal, Managing Director and CEO of Motilal Oswal Asset Management Company (MOAMC), shared his perspectives on wealth creation in today's market. He offered an in-depth look at how the fund house prepares Indian investors for the future through its focused, growth-oriented investment strategy. Moderated by Sridhar Janada, the conversation explored the philosophy underpinning MOAMC's high-performing funds, its unique position in the mutual fund landscape, and the mindset investors—especially Gen Z—need to cultivate in an age of compounding, volatility, and rapid market the context, Agrawal noted MOAMC's emergence as a differentiated player in India's vibrant mutual fund industry. 'We are a young AMC and, you know, being young, you learn from people who have been there before and have done it all. So we did that,' he reflected. Yet the company has not shied away from bold bets. 'We have a few firsts to our credit… focused, high-conviction investing, which we think is a very, very premium portfolio construct.'The firm's philosophy draws heavily from the QGLP (Quality, Growth, Longevity, Price) framework pioneered by Motilal Oswal's co-founder Ramdeo Agrawal. 'This is one house that is very unique in alignment of interest… a lot of the firm's money is invested in our funds. So while we have crossed ₹1.5 lakh crore AUM, over ₹8,000 crore may be house money,' said Agrawal, highlighting how skin in the game deepens much of MOAMC's growth has been attributed to performance, Agrawal believes consistent communication plays an equally important role. 'Performance may be the first thing that makes people look at us… but what we are also trying to do at the same time is to explain what we are doing.'MOAMC's equity-only strategy is by design, not default. 'We run funds which are focused on high conviction, but at the same time very different from the index. Our tracking error is very high—some funds have over 90% deviation from the index. We are not somebody you should think is a consistent, close-to-index performer.'He added that for investors seeking more predictable outcomes, MOAMC offers passive alternatives. 'If you want close to index performance… Passive funds are a cheaper way of attaining the same goals. For actively managed funds, we think our constructs are very different. Come to us for growth. If you can digest volatility, we are good for you.'The tagline 'High Quality, High Growth' is backed by rigorous fund management principles. 'It comes from the QGLP philosophy of the house… ultimately markets follow earnings growth,' explained Agrawal. 'If the business grows in sales, more in profits, even better in cash flows—and does that over a long period of time, clearly the value of the business has increased.'MOAMC's strategy is to identify narrow pockets of high-growth opportunity across the Indian economy. 'We are a medium-sized house. Our funds are small. It is possible for us to position ourselves in the nooks and corners of the market which offer this kind of growth,' he said, citing themes like electronic manufacturing, renewables, new tech, luxury, and capital markets as key areas of recent fund performance, Agrawal offered a transparent view: 'FlexiCap is ranked one now for three years… LMC is ranked one for all periods of its existence… Multicap has had a stellar performance.'However, he reiterated that outperformance comes with inherent volatility. 'Don't expect close to index numbers from us. We are not built for that.' Instead, MOAMC encourages investors to pair growth-focused funds with value strategies to balance their portfolios over duality—embracing volatility while delivering alpha—is at the core of MOAMC's communication strategy. 'This is the time for alpha… We say money is being made this way; this is how we invest. There is probably a higher predictability of performance.'Looking ahead, Agrawal was bullish on both the Indian economy and mutual fund penetration. 'Equities as an asset class have very low penetration in India… below 5%. As per capita income grows, it converts a country of savers into a country of investors. That journey has started.'He believes mutual fund growth will outpace GDP growth in the coming years. 'The fund industry will grow significantly faster than the economy itself… We are very positive about the outlook. This is just the beginning.'In closing, Agrawal delivered a compelling message to young investors: 'Over a long period of time, what makes you money is the ability of the business to keep compounding earnings… focus on quality in combo with growth.'He advised caution against relying on external funding for business expansion. 'If you are financing your growth through internal accruals, the predictability and sustainability of that growth is very high… The purest sense is that the organic growth you generate is constrained by your return on invested capital.'Longevity, he added, is key. 'Longevity is super important. You start with 'L' in QGLP—spaces, which will afford you longevity of growth. One-period growth is of very little use.'For Motilal Oswal AMC, future-proof investing is about more than just chasing returns. It is about discipline, conviction, and clarity of purpose—anchored in a philosophy that sees volatility not as risk, but as Agrawal summed up: 'Alpha is here to stay… and we believe the time for growth investing has come.'
Time of India
3 days ago
- Business
- Time of India
No chill without volatility: Prateek Agrawal on playing the long game in India's new market era
In an insightful episode of the ETMarkets webinar—known for bringing front-row insights from the biggest minds in investing—Prateek Agrawal, Managing Director and CEO of Motilal Oswal Asset Management Company (MOAMC), shared his perspectives on wealth creation in today's market. He offered an in-depth look at how the fund house prepares Indian investors for the future through its focused, growth-oriented investment strategy. Moderated by Sridhar Janada, the conversation explored the philosophy underpinning MOAMC's high-performing funds, its unique position in the mutual fund landscape, and the mindset investors—especially Gen Z—need to cultivate in an age of compounding, volatility, and rapid market shifts. The evolution of a young AMC with strong Convictions Setting the context, Agrawal noted MOAMC's emergence as a differentiated player in India's vibrant mutual fund industry. 'We are a young AMC and, you know, being young, you learn from people who have been there before and have done it all. So we did that,' he reflected. Yet the company has not shied away from bold bets. 'We have a few firsts to our credit… focused, high-conviction investing, which we think is a very, very premium portfolio construct.' The firm's philosophy draws heavily from the QGLP (Quality, Growth, Longevity, Price) framework pioneered by Motilal Oswal's co-founder Ramdeo Agrawal. 'This is one house that is very unique in alignment of interest… a lot of the firm's money is invested in our funds. So while we have crossed ₹1.5 lakh crore AUM, over ₹8,000 crore may be house money,' said Agrawal, highlighting how skin in the game deepens accountability. From performance to purpose: Gaining investor trust While much of MOAMC's growth has been attributed to performance, Agrawal believes consistent communication plays an equally important role. 'Performance may be the first thing that makes people look at us… but what we are also trying to do at the same time is to explain what we are doing.' Live Events MOAMC's equity-only strategy is by design, not default. 'We run funds which are focused on high conviction, but at the same time very different from the index. Our tracking error is very high—some funds have over 90% deviation from the index. We are not somebody you should think is a consistent, close-to-index performer.' He added that for investors seeking more predictable outcomes, MOAMC offers passive alternatives. 'If you want close to index performance… Passive funds are a cheaper way of attaining the same goals. For actively managed funds, we think our constructs are very different. Come to us for growth. If you can digest volatility, we are good for you.' High-quality growth: Not just a tagline The tagline 'High Quality, High Growth' is backed by rigorous fund management principles. 'It comes from the QGLP philosophy of the house… ultimately markets follow earnings growth,' explained Agrawal. 'If the business grows in sales, more in profits, even better in cash flows—and does that over a long period of time, clearly the value of the business has increased.' MOAMC's strategy is to identify narrow pockets of high-growth opportunity across the Indian economy. 'We are a medium-sized house. Our funds are small. It is possible for us to position ourselves in the nooks and corners of the market which offer this kind of growth,' he said, citing themes like electronic manufacturing, renewables, new tech, luxury, and capital markets as key areas of investment. Volatility by design, alpha by intention Discussing recent fund performance, Agrawal offered a transparent view: 'FlexiCap is ranked one now for three years… LMC is ranked one for all periods of its existence… Multicap has had a stellar performance.' However, he reiterated that outperformance comes with inherent volatility. 'Don't expect close to index numbers from us. We are not built for that.' Instead, MOAMC encourages investors to pair growth-focused funds with value strategies to balance their portfolios over time. This duality—embracing volatility while delivering alpha—is at the core of MOAMC's communication strategy. 'This is the time for alpha… We say money is being made this way; this is how we invest. There is probably a higher predictability of performance.' Preparing for the next wave: The $5 trillion opportunity Looking ahead, Agrawal was bullish on both the Indian economy and mutual fund penetration. 'Equities as an asset class have very low penetration in India… below 5%. As per capita income grows, it converts a country of savers into a country of investors. That journey has started.' He believes mutual fund growth will outpace GDP growth in the coming years. 'The fund industry will grow significantly faster than the economy itself… We are very positive about the outlook. This is just the beginning.' Gen Z and the power of compounding In closing, Agrawal delivered a compelling message to young investors: 'Over a long period of time, what makes you money is the ability of the business to keep compounding earnings… focus on quality in combo with growth.' He advised caution against relying on external funding for business expansion. 'If you are financing your growth through internal accruals, the predictability and sustainability of that growth is very high… The purest sense is that the organic growth you generate is constrained by your return on invested capital.' Longevity, he added, is key. 'Longevity is super important. You start with 'L' in QGLP—spaces, which will afford you longevity of growth. One-period growth is of very little use.' For Motilal Oswal AMC, future-proof investing is about more than just chasing returns. It is about discipline, conviction, and clarity of purpose—anchored in a philosophy that sees volatility not as risk, but as opportunity. As Agrawal summed up: 'Alpha is here to stay… and we believe the time for growth investing has come.' Disclaimer - Mutual fund investments are subject to market risks, read all scheme related documents carefully.
Economic Times
03-07-2025
- Business
- Economic Times
Motilal Oswal Asset Management Company crosses Rs 1.5 lakh crore AUM, surge by 34% in 5 years
Motilal Oswal Asset Management Company has achieved a significant milestone with its Assets Under Management (AUM) crossing Rs 1.5 lakh crore across Mutual Funds (Active and Passive), Portfolio Management Services and Category-III Alternative Investment Funds and in the last five years, the AUM has surged by 34%.Over the past five years, MOAMC has delivered a robust 34% CAGR in AUM, rising from Rs 35,180 crore in June 2020. This growth is anchored in the AMC's clear and consistent focus on high-quality, earnings-led growth investing. Also Read | Record inflow of over Rs 15,000 crore in May. What is making arbitrage mutual funds gain investors' interest? 'Crossing Rs 1.5 lakh crore in AUM is a significant milestone that reflects our commitment to equities and long-term investing. This achievement underscores the strength of our philosophy, backing quality businesses with sustainable growth potential. MOAMC's trajectory results from disciplined execution and a sharp focus on building high-conviction, research-driven portfolios,' said Navin Agarwal, Group Managing Director, Motilal Oswal Financial Services. MOAMC today serves 79 lakh customers across 200+ locations in India and manages 95 lakh unique folios across its product offerings. Its AUM composition includes Rs 84,300 crore in Active Mutual Funds, Rs 33,600 crore in Passive Mutual Funds, Rs 15,000 crore in PMS, and Rs 17,100 crore in AIFs, underscoring the company's scale and multi-platform capabilities. The AMC has steadily gained a share in incremental mutual fund flows. In FY25, it captured a 7.8% share of net sales in Growth/Equity-oriented mutual fund schemes, up from 1.9% in FY24. Total net flows for FY25 stood at Rs 48,450 crore, with Systematic Investment Plans (SIPs) contributing Rs 9,256 crore. This scale reflects the confidence that investors and distribution partners have shown in MOAMC's distinct investment philosophy. The AMC has developed a focused approach as a growth-oriented asset manager, aiming to identify businesses with strong-earnings compounding business potential across emerging and underpenetrated segments of the market, according to a press release.'Reaching Rs 1.5 lakh crore in AUM reflects our clients' conviction in our high-quality, high-growth investment philosophy, and the relentless execution by our talented teams. Our focus remains on identifying scalable businesses with sustainable earnings momentum and building high-conviction portfolios meaningfully differentiated from the index,' said Prateek Agrawal, MD & CEO, MOAMC. Also Read | JioBlackRock launches mutual fund access on MyJio, calls it a new era of investing 'We thank our investors for the confidence they have placed in us and remain committed to helping them achieve their long-term financial goals. This milestone inspires us to innovate further, expand our reach, and deepen client relationships as we step into the next phase of growth,' he added.'MOAMC has been at the forefront of financial innovation, expanding its offerings across mutual funds, PMS, AIFs, ETFs and international strategies. MOAMC remains focused on the future, guided by its investment philosophy and commitment to long-term investing' he this milestone, MOAMC reaffirms its commitment to delivering differentiated outcomes, backed by clarity of philosophy, strong research, and conviction-led execution, the release said. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Mint
03-07-2025
- Business
- Mint
Motilal Oswal AMC crosses ₹1.5 lakh crore AUM milestone; stock gains over 2%
Shares of Motilal Oswal Financial Services climbed over 2 percent in intra-day trade on Thursday, July 3, after the company announced that its asset management arm, Motilal Oswal Asset Management Company (MOAMC), had surpassed ₹ 1.5 lakh crore in assets under management (AUM) across mutual funds, PMS, and AIFs. According to the company, MOAMC's AUM has grown at a compound annual growth rate (CAGR) of 34 percent over the past five years, surging from ₹ 35,180 crore in June 2020 to over ₹ 1.5 lakh crore today. Motilal Oswal AMC's AUM is spread across ₹ 84,300 crore in active mutual funds, ₹ 33,600 crore in passive funds, ₹ 15,000 crore under portfolio management services (PMS), and ₹ 17,100 crore in Category-III Alternative Investment Funds (AIFs). The asset manager currently oversees close to 95 lakh unique folios and caters to around 79 lakh customers across more than 200 locations nationwide. This multi-platform scale demonstrates MOAMC's reach and growing trust among retail and institutional investors alike. In terms of mutual fund inflows, FY25 has marked a significant shift. MOAMC captured 7.8 percent of net sales in growth and equity-oriented mutual fund schemes, a notable rise from 1.9 percent in FY24. The total net flows for FY25 stood at ₹ 48,450 crore, with Systematic Investment Plans (SIPs) contributing ₹ 9,256 crore. The AMC attributes this growth to its earnings-focused investment philosophy and its emphasis on identifying quality, scalable businesses across emerging segments of the Indian market. Commenting on the achievement, Navin Agarwal, Group Managing Director of Motilal Oswal Financial Services Limited (MOFSL), said, 'Crossing ₹ 1.5 lakh crore in AUM is a significant milestone that reflects our commitment to equities and long-term investing. This underscores the strength of our philosophy—backing quality businesses with sustainable growth potential.' Prateek Agrawal, Managing Director & CEO of MOAMC, added, 'This milestone reflects our clients' conviction in our high-quality, high-growth investment approach and the relentless execution by our team. Our focus remains on building high-conviction portfolios differentiated from the index.' Following the announcement, shares of Motilal Oswal Financial Services rose as much as 2.1 percent to an intra-day high of ₹ 873.40 on the NSE. The stock remains 18 percent below its 52-week high of ₹ 1,063.40, which was hit in October 2024. It touched its 52-week low of ₹ 487.85 in April 2025. Despite recent volatility, the stock has gained 51 percent over the past year. It rose 7 percent in June, extending its monthly winning streak to four. Gains of 24 percent in May, 6 percent in April, and 4.5 percent in March preceded this rally. The stock had earlier dipped 7.6 percent in February and 33 percent in January.
Mint
03-07-2025
- Business
- Mint
Motilal Oswal AMC crosses ₹1.5 lakh crore AUM milestone; stock gains over 2%
Shares of Motilal Oswal Financial Services climbed over 2 percent in intra-day trade on Thursday, July 3, after the company announced that its asset management arm, Motilal Oswal Asset Management Company (MOAMC), had surpassed ₹ 1.5 lakh crore in assets under management (AUM) across mutual funds, PMS, and AIFs. According to the company, MOAMC's AUM has grown at a compound annual growth rate (CAGR) of 34 percent over the past five years, surging from ₹ 35,180 crore in June 2020 to over ₹ 1.5 lakh crore today. Motilal Oswal AMC's AUM is spread across ₹ 84,300 crore in active mutual funds, ₹ 33,600 crore in passive funds, ₹ 15,000 crore under portfolio management services (PMS), and ₹ 17,100 crore in Category-III Alternative Investment Funds (AIFs). The asset manager currently oversees close to 95 lakh unique folios and caters to around 79 lakh customers across more than 200 locations nationwide. This multi-platform scale demonstrates MOAMC's reach and growing trust among retail and institutional investors alike. In terms of mutual fund inflows, FY25 has marked a significant shift. MOAMC captured 7.8 percent of net sales in growth and equity-oriented mutual fund schemes, a notable rise from 1.9 percent in FY24. The total net flows for FY25 stood at ₹ 48,450 crore, with Systematic Investment Plans (SIPs) contributing ₹ 9,256 crore. The AMC attributes this growth to its earnings-focused investment philosophy and its emphasis on identifying quality, scalable businesses across emerging segments of the Indian market. Commenting on the achievement, Navin Agarwal, Group Managing Director of Motilal Oswal Financial Services Limited (MOFSL), said, 'Crossing ₹ 1.5 lakh crore in AUM is a significant milestone that reflects our commitment to equities and long-term investing. This underscores the strength of our philosophy—backing quality businesses with sustainable growth potential.' Prateek Agrawal, Managing Director & CEO of MOAMC, added, 'This milestone reflects our clients' conviction in our high-quality, high-growth investment approach and the relentless execution by our team. Our focus remains on building high-conviction portfolios differentiated from the index.' Following the announcement, shares of Motilal Oswal Financial Services rose as much as 2.1 percent to an intra-day high of ₹ 873.40 on the NSE. The stock remains 18 percent below its 52-week high of ₹ 1,063.40, which was hit in October 2024. It touched its 52-week low of ₹ 487.85 in April 2025. Despite recent volatility, the stock has gained 51 percent over the past year. It rose 7 percent in June, extending its monthly winning streak to four. Gains of 24 percent in May, 6 percent in April, and 4.5 percent in March preceded this rally. The stock had earlier dipped 7.6 percent in February and 33 percent in January. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
