BR S T

BRSTBRST
Your key to
India’s Next Trillion Dollar
of GDP Growth

BRSTBRST
C
el

11
ebratin

Years

g
NEXT
Trillion Dollar
Opportunity Strategy
December 2019
 About the Strategy

NTDOP is a multi-cap strategy investing across market capitalization

Investing in businesses that benefit from the Next Trillion Dollar GDP growth of India
11+ years track record with consistent outperformance vis-à-vis benchmark across market cycles (10 out 11
calendar years)
Concentrated portfolio of 25 stocks with 16 companies held for over 5 years: a truly ‘Buy and Hold’ strategy
Index agnostic: ~88% away from benchmark Nifty 500

Investment Manager
Motilal Oswal AMC is the pioneer of PMS business in India with over 16 years of track record
One of the co-founders, Mr. Raamdeo Agrawal is one of the most honored and trusted names in the investing
world
It has a unique positioning of being “Equity only AMC” with defined “Investment Philosophy”
Trusted by over 42,000 HNI investors and with around Rs. 16,000 Crs of assets as on 30th November 2019

1
 India’s GDP Growth Opportunity
5000 Nearing 5th

4729
US$ tn

4306
4500 4th US$ tn

3924
4000

3577
3rd US$ tn

3258
3500

2972
3000

2726
2653
2nd US$ tn
India GDP (current $ bn)

2290
2500

2104
2039
1857
1828
1823
2000

1676
1st US$ tn

1342
1500

1217
1199
940
820
1000

709
608
515
485
468
459
421
416
393
360
327
321

500
297
296

288
279

279
270
249
233
218
212
201
193
186

FY 2007
FY 2008
FY 2003
FY 2004
FY 2005
FY 2006
FY 1999
FY 2000
FY 2001
FY 2002
FY 1994
FY 1995
FY 1996
FY 1997
FY 1998
FY 1990
FY 1991
FY 1992
FY 1993

FY 2018

FY 2023E
FY 2024E
FY 1987
FY 1988
FY 1989
FY 1984
FY 1985
FY 1986

FY 2009

FY 2016
FY 2017

FY 2020E
FY 2021E
FY 2022E
FY 1980
FY 1981
FY 1982
FY 1983

FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015

FY 2019
According to World Bank data, India has now become the world’s sixth-largest economy
India is one of the fastest growing among major economies
Source: statisticstimes.com
Past performance may or may not sustain and does not guarantee future performance
Note - Above forward looking statements are based on external current views and assumptions and involve known and unknown risks and uncertainties that could affect actual results.
Investments are subject to market risk. The above graph is used for illustration purpose only and should not used for development or implementation of an investment strategy.

2
 Rising Discretionary Spending

Discretionary spending is expected to increase Discretionary spending will rise from 52%
disproportionately going forward in 2005 to 70% in 2025

DISCRETIONARY ITEMS Necessities

Share of Avg. Household consumption
Discretionary Items
% thousand, INR
4 7
110,000 3 9 13 Health Care
1 5
100,000 11 2 6
CAGR of 3
10.5%
9 Education & Recreation
90,000 4 17
2 6 Communication
80,000 19
14
Per Capita Income
(In Rs. Thousand)

8 Transportation
70,000 20
5 3 9
60,000
CAGR of 12 3 Personal Products &
50,000 9.5% 11 Services
6 12
40,000 3
5 10
30,000 Housing & Utilities
CAGR of 11.6% 56
30,000 5
42
10,000 34 Food, beverages &
25
Tobacco
2001

2011
1991

2002

2012
2000

2003
2004

2006
2007

2010

2014
2008
2009

2013

2016
2017
2005

2015
1992
1993
1994

1996
1997
1998
1999
1995

1995 2005 2015 2025 E

Above forward-looking graphs/statements are based on external current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results.
Source: data.gov.in & Motilal Oswal Financial Services Ltd

3
 Some Themes that Benefit from GDP Growth

Consumption Banking and Government Spending

Financial Services

• Consumer Discretionary • Banks • Power

• Retailing • Capital Markets • Cement
• Consumer Durables • Insurance • Capital Goods
• Passenger Vehicles • NBFCs • Construction
• Utility Services • Engineering

These are illustrative in nature and can change from time to time based on the outlook of the portfolio manager.

4
Benefits of Multicap

Large Cap
Leaders in respective sectors
Stability and less volatile

Mid Cap
High growth
Potential of tomorrow’s large caps

Small Cap
Emerging businesses
Offer potential to scale

5
 Investing in Multicaps Reduces Extremes
Top CY2013 CY2014 CY2015 CY2016 CY2017 CY2018 2019YTD

Large Cap Small Cap Mid Cap Mid Cap Small Cap Large Cap Large Cap
[8.1%] [71.1%] [8.7%] [9.3%] [60.8%] [3.7%] [11.3%]
Performance

Multicap Mid Cap Small Cap Multicap Mid Cap Multicap Multicap
[6.1%] [56.9%] [7.7%] [5.4%] [49.9%] [0.8%] [9.7%]

Mid Cap Multicap Multicap Large Cap Multicap Mid Cap Mid Cap
[-4.0%] [37.4%] [-0.2%] [4.7%] [35.0%] [-12.5%] [-1.3%]

Small Cap Large Cap Large Cap Small Cap Large Cap Small Cap Small Cap
[-9.7%] [33.3%] [-2.7%] [2.7%] [31.6%] [-22.8%] [-6.8%]
Bottom

Diversification offers flexibility to invest across sectors/ themes and may perform well in different market conditions
with relatively low risk

Multicap Index – S&P BSE 200 TRI ; Large Cap – S&P BSE Large Cap TRI; Mid Cap - S&P BSE Mid Cap TRI; Small Cap - S&P BSE Small Cap TRI.
Source: ICRA MFI Explorer. Performance shown above is CAGR (%) and is for the Calendar Year. 2019-YTD is till November 30, 2019 The above graph is used to explain the concept and is for illustration
purpose only and should not used for development or implementation of an investment strategy. Past performance may or may not be sustained in future.

6
Our Investment Philosophy
At Motilal Oswal Asset Management Company (MOAMC), our investment philosophy is centered on
'Buy Right: Sit Tight‘ principle.
Buy Right
QGLP
‘Q’uality denotes quality of the business and
management
‘G’rowth denotes growth in earnings and
sustained RoE
‘L’ongevity denotes longevity of the
competitive advantage or economic moat of
the business
‘P’rice denotes our approach of buying a good
business for a fair price rather than buying a
fair business for a good price
Sit Tight
Buy and Hold: We are strictly buy and hold
investors and believe that picking the right
business needs skill and holding onto these
businesses to enable our investors to benefit
from the entire growth cycle needs even more
skill.
Focus: Our portfolios are high conviction
portfolios with 25 to 30 stocks being our ideal
n u m b e r. W e b e l i e v e i n a d e q u a t e
diversification but over-diversification results
in diluting returns for our investors and adding
market risk
7
 Wealth Creators - Buy and Hold Strategy

Initial Market Cap

Rs. Crores Market CAGR
Stock Purchase Cap Rs. Crores Absolute
(Purchase Growth (%)
Date Date) 30-Nov-19
Page Industries Dec-07 466 24,585 52.8X 39%
Bajaj Finance Aug-10 2,836 2,45,140 86.4X 61%
Eicher Motors Aug-10 3,464 62,477 18.0X 36%
HPCL Jun-14 14,339 43,063 3.0X 22%

No. of Scrips Holding Period Buy and Hold strategy with > 60% stocks held for more than 5 years
(Page Industries held since inception) and 10% of stocks held for
2 Since Inception (10+ Years) 10+ years resulting in wealth creation for investors
14 >5 Years
The average holding period for stocks held under NTDOP Strategy is
7 > 2 Years but <5 Years
over 6 years 3 months
2 <2 Years

Source: MOAMC Internal Analysis

Please Note: The given stocks are part of portfolio of a model client of NTDOP Strategy as on 30th November 2019. The stocks forming part of the existing portfolio under
NTDOP Strategy may or may not be bought for new client. Past performance may or may not be sustained in future and should not be used as a basis for comparison with
other investments. The Company mentioned above is only for the purpose of explaining the concept and should not be construed as recommendations from MOAMC.

8
 Portfolio Allocation

Sectoral Allocation Top 10 Holdings

Scrip Name % Holding
Banks 27.6
FMCG
Kotak Mahindra Bank 13.5
15.6
Auto & Auto Ancillaries 11.1 Voltas 10.7
Consumer Discre onary 10.7 Page Industries 7.8
Infotech 7.6 ICICI Bank 6.6
Pharmaceu cals 6.0 City Union Bank 5.2
Oil and Gas 4.8 Eicher Motors 4.9
Insurance 4.3 Max Financial Services 4.3
Logis c Services 3.0 L&T Technology Services 4.0
Diversified 2.9 Ipca Laboratories 3.7
NBFC 2.6 3.6
Tech Mahindra
Engineering & Electricals 2.3
Chemicals 1.4 Market Capitalization
2.7%
Please Note: Data as on 30th November 2019. The stocks mentioned are a part of existing NTDOP Large Cap
Strategy clients and may or may not be bought for new clients. Past performance may or may not 46.5%
be sustained in future and should not be used as a basis for comparison with other investments. Mid Cap
The strategy may or may not have any future holdings in these stocks and should not be Small Cap
construed as recommendations from MOAMC. 50.7%

Weighted Average Market Cap Rs. 91,817 Crs

9
 Performance Snapshot

NTDOP Strategy Nifty 500 21.8

20.4

16.1 NTDOP Strategy has delivered a

14.3
13.2 CAGR of 16.1% vs. Ni y 500
10.8 11.5 11.2
10.1 9.0 returns of 5.6%, an
7.7 7.2 outperformance of 10.5%
6.4 5.6
3.5
(CAGR) since incep on (5th
1.6 December 2007)
1 year 2 Year 3 Years 4 Years 5 Years 7 Years 10 years Since Incep on

*Strategy Inception Date: 11th December 2007.

Please Note: The Above strategy returns are of a Model Client as on 30th November 2019. Returns of individual clients may differ depending on time of entry in the Strategy. Past
performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Returns below 1 year are absolute and above 1 year
are annualized. Strategy returns shown above are post fees & expenses.
10
 Performance Snapshot
60 NTDOP Strategy Nifty 500
50
Rs. 1 crore invested in NTDOP
40 6.0X
30
Strategy at inception is worth Rs.
20 6.0 cr as on 30th November
10 2019. For the same period Rs. 1
1.9X
0 cr invested in Nifty 500 Index is
now worth Rs. 1.9 cr.
Nov-10

Nov-17
Dec-07

Jul-08

Feb-09

Sep-09

Apr-10

Jun-11

Jan-12

Aug-12

Mar-13

Oct-13

May-14

Dec-14

Jul-15

Feb-16

Sep16

Apr-17

Jun-18

Jan-19

Oct-19
19 NTDOP Strategy Ni y 500 18.4
17 Rs. 1 crore invested in NTDOP
15 Strategy at inception is worth Rs.
13 1.84 cr as on 30th November
14.5
11 2019. For the same period Rs. 1
9 cr invested in Nifty 500 Index is
7 now worth Rs. 1.45 cr.
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15

Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-17
Mar-17
May-17
Jul-17
Sep-17
Nov-17
Jan-16

Jan-18
Mar-16
May-16
Jul-16
Sep-16
Nov-16

Mar-18
May-18
Jul-18
Sep-18
Nov-18

*Strategy Inception Date: 11th December 2007.

Please Note: The Above strategy returns are of a Model Client as on 30th November 2019. Returns of individual clients may differ depending on time of entry in the Strategy. Past
performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Returns below 1 year are absolute and above 1 year
are annualized. Strategy returns shown above are post fees & expenses.
11
 Performance - Rolling Returns

The data shows rolling returns of the NTDOP

Strategy over various time frames.
NTDOP Strategy % of times returns were negative
Average returns
It is worth noting that on 1 year rolling basis,
the returns are in a very wide range. The best
return made by the Strategy is 141% and the 200%
141%
worst return is -57%. 150%

100% 73%
50% 44% 43%
37%
As we increase the time horizon, the 50% 36% 37% 34% 30%

0%
outcomes narrow significantly from the -2% 4% -1%
9% 10% 17% 17% 17% 19%

-50%
average. -100%
-57%

For instance, if we consider the 5 year time

16 1 0 1
frame, historically the best return (CAGR) is
37%, least return is 9% and average return is 1 2 3 4 5 6 7 8 9 10
27%. Investment tenor (in years)

Total number of time periods: 1year: 3,655; 2years: 3,271; 3years: 2,906; 4years: 2,541; 5years: 2,175;
It may also be noteworthy that the negative 6years: 1,810; 7years: 1,445; 8years: 1080; 9years: 715; 10years: 475;
returns above 2 years rolling periods are zero,
barring 4 years rolling returns which is only 1%.
Please Note: The Above strategy returns are of a Model Client as on 30th November 2019. Returns of individual clients may differ depending on time of entry in the strategy. Past performance may
or may not be sustained in future and should not be used as a basis for comparison with other investments. Strategy returns shown above are post fees & expenses. Returns above 1 year are
annualized.

12
 Fund Manager
Manish has been managing the Strategy since inception and also serves
as the Director of the Motilal Oswal India Fund, Mauritius.

He has over 25 years of experience in equity research and fund

management, with over 14 years with Motilal Oswal PMS.

He has been the guiding pillar in the PMS investment process and has
been managing various PMS strategies and AIFs at MOAMC.

Manish Sonthalia Manish holds various post graduate degrees including an MBA in
Finance, FCA, Company Secretaryship (CS) and Cost & Works
Accountancy (CWA).

13
 Disclaimer
Disclaimer: This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information
contained in this document is for general purposes only and not a complete disclosure of every material fact and terms and conditions. The information / data herein alone is not
sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions, figures,
charts/graphs, estimates and data included in this presentation are as on date and are subject to change without notice. While utmost care has been exercised while preparing this
document, Motilal Oswal Asset Management Company Limited does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages
arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our
current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those
expressed or implied in such statements. Readers shall be fully responsible /liable for any decision taken on the basis of this presentation. No part of this document may be duplicated
in whole or in part in any form and/or redistributed without prior written consent of the Motilal Oswal Asset Management Company Limited. Readers should before investing in the
Strategy make their own investigation and seek appropriate professional advice. • Investments in Securities are subject to market and other risks and there is no assurance or
guarantee that the objectives of any of the strategies of the Portfolio Management Services will be achieved. • Clients under Portfolio Management Services are not being offered any
guaranteed/assured returns. • Past performance of the Portfolio Manager does not indicate the future performance of any of the strategies. • The name of the Strategies do not in any
manner indicate their prospects or return. • The strategy may not be suited to all categories of investors. • The material is based upon information that we consider reliable, but we do
not represent that it is accurate or complete, and it should not be relied upon as such. • Neither Motilal Oswal Asset Management Company Ltd. (MOAMC), nor any person connected
with it, accepts any liability arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice. • Opinions, if
any, expressed are our opinions as of the date of appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there
may be regulatory, compliance, or other reasons that prevent us from doing so. • The Portfolio Manager is not responsible for any loss or shortfall resulting from the operation of the
strategy. • Recipient shall understand that the aforementioned statements cannot disclose all the risks and characteristics. The recipient is requested to take into consideration all the
risk factors including their financial condition, suitability to risk return, etc. and take professional advice before investing. As with any investment in securities, the Value of the
portfolio under management may go up or down depending on the various factors and forces affecting the capital market. Disclosure Document shall be obtained and read carefully
before executing the PMS agreement. • Prospective investors and others are cautioned that any forward - looking statements are not predictions and may be subject to change
without notice. • For tax consequences, each investor is advised to consult his / her own professional tax advisor. • This document is not for public distribution and has been furnished
solely for information and must not be reproduced or redistributed to any other person. Persons into whose possession this document may come are required to observe these
restrictions. No part of this material may be duplicated in any form and/or redistributed without ’MOAMCs prior written consent. • Distribution Restrictions – This material should not
be circulated in countries where restrictions exist on soliciting business from potential clients residing in such countries. Recipients of this material should inform themselves about
and observe any such restrictions. Recipients shall be solely liable for any liability incurred by them in this regard and will indemnify MOAMC for any liability it may incur in this respect.

Custodian: Deutsche Bank A.G. | Auditor: Aneel Lasod & Associates | Depository: Central Depositary Services Ltd
Portfolio Manager: Motilal Oswal Asset Management Company Ltd. (MOAMC) | SEBI Registration No. : INP 000000670
For any PMS queries please call us on +91 81086 22222 / 022-4054 8002 (press 2 for PMS)
or write to pmsquery@motilaloswal.com or visit www.motilaloswalmf.com

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