Fund of Fortnight

Reason for recommendation
Large-Cap stocks, representing well-established companies, offer stability and consistent returns. In contrast, Mid-Cap stocks provide growth potential. In the current scenario, where the market is yet to fully recover, creating a balanced portfolio that can withstand market volatility is advisable. Therefore, our selection for MF Select this time is the Motilal Oswal Large & Midcap Fund. 

The fund has delivered commendable returns over various time frames compared to the category average, reflecting its strong performance and consistency. The one-year return stands at an impressive 18.73 per cent, more than double the category average of 8.66 per cent. Over a two-year period, the fund has generated 35.72 per cent, significantly surpassing the category average of 25.41 per cent. 

Examining the sector-wise allocation, the fund maintains a diversified portfolio with a focus on Capital Goods, which constitutes 30.83 per cent of the portfolio, marking it as the largest sector exposure. Services contribute 16.53 per cent, followed by Financials at 11.79 per cent, indicating a significant weight in cyclical and growth-oriented sectors When compared with peers in the large and mid-cap category, the fund demonstrates competitive risk-return metrics. Its Sharpe ratio of 1.0 and Sortino ratio of 1.12 indicate a balanced risk-adjusted return profile. Top individual holdings showcase the fund’s strategic positioning in high-quality, growth-oriented companies. These companies represent a blend of defencerelated, consumer, and energy sectors, highlighting the fund’s emphasis on sectors poised for growth and strategic importance in the Indian economy. 

The fund’s moderate risk profile combined with attractive risk-adjusted returns makes it suitable for investors with a medium to long-term investment horizon, seeking to capitalise on India’s expanding economy and industrial growth.