PMS & AIF SAHI HAI

Growth of PMS Industry

PMS AUM (Equity) 2,26,603

1,93,735

1,22,464 1,24,168
1,12,745 1,14,464
1,07,708
1,00,583 1,03,382

84,393

62,017
53,427
47,658
41,493
38,052

Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21

2
Discretionary PMS AUM in Rs. Crore
THINK EQUITY 3
THINK MOTILAL OSWAL
What is Portfolio Management Service ?

Tailor made professional service

PMS is a tailor-made professional service offered to cater
the investment objective of HNI investors

Min investment value is 50 lakhs

The clients can be Individuals or non-individuals with high
net worth. Min investment value is 50 lakhs.

Stocks are held in investor’s Demat account

New demat account is opened in investor name only for PMS
This is unlike MF where stocks are held in pool account

PMS categories
PMSs are either Discretionary or Non-Discretionary.
Discretionary PMS is where the fund manager does not need
approval from the investors while managing portfolio. 4
Advantages of PMS

Opportunity to Differentiate
HNI investors have need for differentiation and upgrade from
traditional MF options

Independent Portfolio
Since holdings are isolated in individual investor's demat -
Purchase/redemption of other investors does not impact
model portfolio.

Transparent Holdings & Transactions

In PMS, all holdings and every transaction is visible to investor
MFs give month-end portfolio & do not declare transactions

True Averaging of Stocks through Top Ups

In PMS, all stocks are purchased with top up amount,
proportionate to current holding
5
Advantages of PMS (continued)

Regulatory Restrictions on Mutual Funds

Scheme Classification rules lead to restrictive investment
options in MFs. For ex: Largecap 80%; Multicap 25/25/25

No Portfolio Limitations
PMS does not have allocations limit of 10% per stock or
sector limit of 25% as in MFs

Expenses similar to MFs

MFs have No monthly statement of charges and no
transparency hence investors assume MFs do not have
charges

Transparent Cost Structures

Monthly report available of all charges paid for PMS
6
 How has PMS Evolved?

Positioned as an HNI Offering

 The ticket size of PMS has been enhanced by SEBI to Rs.50 Lakhs and
above from erstwhile Rs.25 Lakhs and above.

No Upfront Fees
 To make the product more competitive and to curb misselling of revenue
driven products, SEBI has removed upfront Fees collection from investors.

No Setup Fees
• The Onetime cost of Setup Fees have been removed in order to make the
product competitively priced compared to its pooled offerings.

THINK EQUITY 7
THINK MOTILAL OSWAL
 Why Distributors Should Market PMS?

Niche Offerings for HNI Clients

 In recent times many HNI clients are looking beyond conventional

offerings to provide a definitive edge to their portfolios. PMS provides
those niche strategies what HNI clients intend to invest in.

Access to sophisticated portfolio management for HNI Clients

 HNI clients self managed portfolios can be easily converted to PMS

through stock transfer or fund transfer or both.

 They would be more comfortable with professional management rather

than tip based guidance.

THINK EQUITY 8
THINK MOTILAL OSWAL
 Why Distributors Should Market PMS? (continued)

Sense of Ownership for HNI Clients

 In PMS, HNI clients hold the stocks in their demat account providing
them sense of ownership when compared to pooled offerings wherein
they hold the units.

Enhanced Revenues for PMS

 PMS provide better and comparable revenues when compared with their
pooled counterparts.

Change of Broker
 Many of the PMS allows change of broker code for their distributors
without hampering payouts.

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THINK MOTILAL OSWAL
 Why Motilal Oswal PMS?

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THINK MOTILAL OSWAL 7
 Unique PMS Offerings

Market Leader
MOAMC manages 15,000+ Crores in PMS (as on October 2021)

Legacy
First PMS strategy launched in 2003. 18+ years of rich experience.

Multiple PMS Strategies

Option to choose more than one PMS strategy within your portfolio

Funding
Option to fund PMS account via stock transfer and/or fund transfer

THINK EQUITY
THINK MOTILAL OSWAL 8
 Tailor-make Your Own Portfolio Take Advantage of Switch / STP

Entire 50 lakhs need not be invested in market at one

Entire 50 lakhs need not be invested in single strategy
time

Choose a blend of multiple strategies as per your need Set up STP from liquid fund over multiple months & 5
date options per month

Min investment in single strategy is only 5 lakhs Min STP amount only 2 lakhs

Anytime top up with min amount only 2 lakhs Set up monthly / quarterly SIP with min amount of
only 2 lakhs

THINK EQUITY 12
THINK MOTILAL OSWAL 9
 Providing Investors with Quality Portfolio Updates

Fund Manager Interactions Video Factsheets

Quarterly Webinar to give detailed insights Brief updates directly from Fund Manager’s
on portfolio and markets desk via video message

Portfolio Insights

Receive a detailed report on each stock holding

after every quarter results

THINK EQUITY 13
THINK MOTILAL OSWAL 10
 Best in Class Support & Operations

Digital Onboarding
• Online PMS account opening
• Easy documentation – only PAN, Aadhaar and Cheque
• One of fastest account opening timeline in industry

After Sales Services

• Access to PMS Investor Relations desk for discussion with expert on portfolio and outlook
• Dedicated PMS customer service team for operational requirements
• CA audited tax statements at end of every FY

Transparency
• Online access to PMS reports with easy login through OTP
• Monthly statements sent to mail ID

THINK EQUITY
THINK MOTILAL OSWAL 11
AIF SAHI HAI
What is Alternate Investment Funds (AIF)?

AIFs are SEBI regulated product offerings

Come under purview of regulator
SEBI introduced revised AIF regulations in 2012

Investment Goal of AIF is the same as PMS or MF

To create wealth for investors!

An Investment Vehicle structure similar to MFs

Stocks held in pool account
Units allocated to investors
Increase in NAV leads to wealth creation

Private Offering
Not offered by all AMCs and by limited distributors.
Cannot be bought publically, unlike MFs. 16
 Features of AIF

Min investment of 1 Crore

Suitable to HNI investors looking for differentiated product
and added benefits over MF/PMS

Lesser Restrictions on portfolio, similar to PMS

No limit of maximum 10% in single stock or 25% in a sector
No classification categories to restrict stocks by market cap

AIF can be closed-ended or open-ended

Open-ended AIFs run perpetually, similar to most MFs
Closed-ended AIF have a pre-decided ‘maturity’ date

THINK EQUITY 17
THINK MOTILAL OSWAL
 Advantages of Closed-ended AIF

Entire 1 crore need not be taken at one-time

Closed-ended AIFs have option to collect funds in
instalments (as decided by fund management team)

Fund Manager can give drawdown notice for

instalment
Take advantage of corrections OR when new ideas emerge
2-3 weeks time will be given to transfer next instalment

Investor may opt for SIP option

For example: 10 instalments of 10% of commitment value
over 10 months – with direct debit feature from bank acc

THINK EQUITY 18
THINK MOTILAL OSWAL
 Advantages of Closed-ended AIF

AIFs can pre-close & return funds before maturity

If targeted return is achieved before maturity OR there is
large outperformance in returns OR market looks
overvalued

AIFs can return partial capital before maturity date

Close to maturity date – fund manager does not have to
re-invest booked profits in market. Partial funds can be
returned, locking in high returns on investment.

AIFs can also extend the maturity date, if necessary

In adverse market scenario (for ex: Covid correction), fund
period can be extended to exit at better valuations in future

THINK EQUITY 19
THINK MOTILAL OSWAL
 The AIF Advantage to Investor

Decision of when to enter the market can be taken

by FM
By means of calling for instalments in right situations
SIP is also a proven effective way to manage entry

Decision of when to exit the market is taken by FM

FM has flexibility of partial, early or delayed maturity date of
returning funds

No inflow or redemption pressure after final

onboarding
Portfolio does not get churned on account of entry/exit
On average 40% AuM of MF gets churned due to entry/exit

THINK EQUITY 20
THINK MOTILAL OSWAL
 AIF Taxation

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THINK MOTILAL OSWAL
Taxation of Category III Long Only Equity AIF

Tax is paid by fund at fund level

Investor gets tax paid capital on maturity or redemption
Investor does not have to worry about paying tax

Fund pays tax at similar rate as investor

15% (+surcharge) on STCG on equity
10% (+surcharge) on LTCG on equity
30% (+surcharge) on Dividend income

Tax is calculated on buy & sell price of individual stocks

Fund will setoff any booked gain against booked loss before
paying tax, as allowed by IT

Treatment of Tax
Investor cannot setoff gain or loss from AIF investment
against any other gain or loss in Income Tax Return 22
MOTILAL OSWAL AMC
Pioneers of Quality investing

February, 2022
 Rich History of 18 Years in Public Money Management

Current equity AUM of

50,000+ crores of which
15,000+ crores AUM in PMS

2003 2007 2013 2016 2018 2022

Launch of the asset Launch of Flagship Launch of first Launch of first

Motilal Oswal AMC Motilal Oswal NTDOP
management business PMS Strategy Mutual Fund offering AIF offering
Awarded Strategy Ranked #1
with first PMS offering - NTDOP - Focused 25 Fund
"Best Portfolio Best PMS in 10 years
– Value Strategy Management Services performance across all
Product 2018" categories
At The India Wealth (on risk adjusted returns) at
Awards 2018 by India’s Smart Money
Association of Manager Awards – 2021
International Wealth
Management of India

THINK EQUITY 24
THINK MOTILAL OSWAL Private and 2Confidential
 QGLP : arguably India’s only fund house with a documented investment philosophy

Investment Philosophy

Quality of business x Quality of management Growth in earnings

• Stable business, preferably consumer facing • Volume growth
• Huge business opportunity • Price growth
• Sustainable competitive advantage • Mix change
• Competent management team Q G • Operating leverage
• Healthy financials & ratios • Financial leverage

Longevity – of both Q & G Price

L P
• Long-term relevance of business • Reasonable valuation, relative to quality &
• Extending competitive advantage period growth prospects
• Sustenance of growth momentum • High margin of safety

THINK EQUITY 25
THINK MOTILAL OSWAL
 Chairman and One of India’s Most Respected Investing Minds

• Equity investing is complex. A checklist is an

excellent tool to bring discipline to the
process.
• The 25 questions here and the 25 related
frameworks are a good starting point for an
Raamdeo Agrawal investor to create their own checklist over
Chairman, MOFSL
time.
• Time is a friend of good companies and
enemy of bad companies.
• In 25 years, successful companies grow to
unimaginable levels in sales, profits and market
cap.
• Stock returns are slaves of earnings power
and growth. In the very long run, valuations
matter less.
• Over 50% of current market cap is made up
of listings post 1995.

THINK EQUITY 26
THINK MOTILAL OSWAL
 Skin in the game : What does it mean? – A true Win-Win Construct

‘Skin in the Game’ : Where the Fund House invests What is at stake? I Win only when
heavily in its own funds along with investors ~4,225 Cr you Win

• Skin in the game is the ultimate fiduciary test

• Promoters invest at the same structures as institutional investors
• When interests are aligned – benefits and rewards are also aligned

THINK EQUITY 27
THINK MOTILAL OSWAL
Next Trillion Dollar Opportunities Portfolio
Linear GDP growth = Exponential opportunities
 India growth story is on …
6th USD tn
2 years
The next trillion dollar opportunity 5th USD tn • 60 years for first
India’s GDP trend in USD bn 3 years
trillion dollar of GDP
4th USD tn 6.1
3 years
3rd USD tn 5.2
7 years
4.0
• Every NTD (next
2nd USD tn
7 years
1st USD tn 3.1 trillion dollar) in
~60 years
2.0 successively few years
1.2
FY50
FY60
FY70
FY80
FY90
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22E
FY23E
FY24E
FY25E
FY26E
FY27E
FY28E
FY29E
FY30E
Source: MOAMC Internal Research
Disclaimer: The above graph/data is used to explain the concept and is for illustration purpose only. The data mentioned herein are for general and comparison purpose only and not a complete disclosure of every material fact. and should not used for development or implementation of an
investment strategy. Past performance may or may not be sustained in future.

THINK EQUITY 29
THINK MOTILAL OSWAL 8
 NTD Framework : Linear growth, Exponential opportunities

Doubling of per capita GDP

leads to 10x opportunity in
Basic Spend discretionary categories

Discretionary Spend
Housing
Saving Consumer
1200 Autos Durables

4x Entertainment
Premium
1050 Travel
Wear
10 x
300 Higher savings also mean
100
opportunities in:
600 750
Capital
Infrastructure
USD 1,000 USD 3,000 Goods
Source: MOAMC Internal Research
Disclaimer: The above graph/data is used to explain the concept and is for illustration purpose only. The data mentioned herein are for general and comparison purpose only and not a complete disclosure of every material fact. and should not used for development or implementation of an
investment strategy. Past performance may or may not be sustained in future.

THINK EQUITY 30
THINK MOTILAL OSWAL
Robust Long Term Compounder – 20% CAGR for 13yrs
• Delivered 16% return since inception v/s benchmark returns of 11%

87.2

NTDOP 8.7x

Nifty 500 TRI 4.8x

58.0 57.5 Post Fees Excess 3.9x
52.9
49.9

40.0 41.0
SI Returns (CAGR)
NTDOP 16%
24.4 Nifty 500 11%
17.6 Alpha 5%
12.9 14.1
11.9
8.5

Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jan-22

11
5 yr Rolling Returns – Returns in excess of 15% are 75 % of all observations

NTDOP Strategy Nifty 500 TRI

• The number of
% times returns are observations for
75% 30%
in excess of 15% returns above 15% is
75% compared to only
% times returns are 30% of the benchmark
6% 18%
less than 7%

• The strategy on an
Average 21.5% 11.5% average has delivered
21.5% on 5 years
rolling basis compared
to 11.5% by the
benchmark

• The number of
observations for
returns below 7% is
only 6% compared to
18% of the benchmark
Rolling Returns Data Since Inception. Data as of 31st July,2021 13
Inception data:- 3rd August, 2007
 Strategy has a stellar track record of identifying Multi-baggers
Past Multibaggers Initial Buy Portfolio Status Multiple

Page Industries Dec-07 Part of Portfolio 77x New additions

like Gland
Bajaj Finance Aug-10 7-Apr-20 58x Pharma
already 2x :
Eicher Motors Ltd. Aug-10 Part of Portfolio 23x showing
promising
GlaxoSmithkline Consumer Healthcare Ltd. / HUL Feb-09 23-Nov-20 18x signs, gearing
up for a long
Ipca Labs Nov-12 Part of Portfolio 5x innings
Voltas Dec-10 Part of Portfolio 4x
Max Financial
Potential Multibaggers First Purchase Month Returns Multiple (already 3x)
and ICICI
Max Financial June-2014 215% 3.2x Bank all set to
join the
Gland Pharma Nov-20 126% 2.3x multibaggers
club
ICICI Bank Nov-18 89% 1.9x

12
 Historically Low PEG : Earnings Growth and Valuations in a Sweet Spot

QGLP Philosophy

Favourable Market Cap Mix Quality RoE: 20% FY24E Sector Mix

Others,
Small Cap, 19%
6% BFS, 19%

Growth 24% PAT CAGR over FY21 – 24E

Insurance, Consumer
6% Discretion
Consumer ary, 11%
Staples, 5%

Longevity High Pharma, Auto & IT, 21%

Mid Cap, Large Cap, 10% Auto
47% 45% Ancillaries,
8%

Price PE: 17x FY24; PEG: 1.2x

Disclaimer: The Stocks mentioned above are used to explain the concept and is for illustration purpose only and should not be used for development or implementation of any investment strategy. It should not be construed as investment advice to any party. The stocks may or may not be part
of our portfolio/strategy/ schemes. Past performance may or may not be sustained in future
34
 Portfolio Quants: NTDOP is far superior compared to NSE 500

NTDOP Strategy NSE 500^

FY24 ROE 20% 13% NTDOP is far superior

FY21-24 EPS Growth 24% 23% NTDOP is superior

PEG 1.2x 1.6x NTDOP is far superior

^Telecom sector excluded due to huge losses to profit in FY21-FY24

THINK EQUITY
THINK MOTILAL OSWAL
Next Trillion Dollar Opportunity Fund

Now available on AIF platform from Feb 2022

Category III, open ended AIF

Feb, 2022
AIF Platform benefits – Open ended structure

Best of both worlds – Pool level investing like MF and Flexibility like PMS

Operational ease – No demat required; Smooth online onboarding

Invest in IPOs as an Anchor

Tax Convenience – Taxes paid by the scheme on behalf of investors

37
Key Terms & Structure
Class Fee Structure Minimum Capital Commitment Management Fee p.a. Performance Fee* Hurdle (pre-tax)

B1 Fixed Fee 1 Cr < 2.5 Cr 2.50% NA NA

B2 Fixed Fee >= 2.5 Cr < 5 Cr 2.25% NA NA

B3 Fixed Fee >=5 Cr < 10 Cr 2.00% NA NA

B4 Fixed Fee >=10 Cr < 25 Cr 1.75% NA NA

B5 Fixed Fee >= 25 Cr 1.50% NA NA

C1 Only Variable > 1 Cr 0.00% 20% 8%

Name of the scheme Motilal Oswal Next Trillion Dollar Opportunities Fund

Type Category III, open ended scheme

Subscription/Redemption Subscription:Weekly – Every Monday; Redemption - Monthly

No. of stocks Upto 30

Exit Load – From
Upto 6 months – 4%, 6 to 12 months – 3%, 12-24 months – 2%, 24 to 36 months – 1%
allotment date
38
*Shall be calculated as per the performance period annually as per the financial year. Please refer PPM for further details.
Motilal Oswal Focused Midcap Strategy
A Midcap oriented PMS
 Stellar Performance Since Inception – 109% absolute returns
Persistent
Multi- Mastek Dixon Tech
Systems
baggers 10.3x 5.5x
8.9x

APL
LTTS
Apollo
3.7x
5.0x

Birlasoft
2.8x
115%

110% 109%

105% 15%
outperformance
100%

95% 94%

90%

85%
Absolute Returns Since Inception
Inception Date- 24th Dec,2019 ; Data as on 31st January,2022 Source: MOAMC Internal Research, NSE India FMS Benchmark
Disclaimer: The above graph/data is used to explain the concept and is for illustration purpose only. The data mentioned herein are for general and comparison purpose only and not a complete disclosure of every material fact. and should not used for development40
or implementation of an
investment strategy. Past performance may or may not be sustained in future. 19
 High concentration – high conviction – 23 stock portfolio

QGLP exemplified

Market Cap Mix Quality RoE: 19% FY24 Sector Mix

Technology,
1.9
Consumer
Large Cap, IT,
Small Discretionary,
15% 16.4
Cap, 33% 10.4
Growth 22% PAT CAGR over FY21 – 24E

Consumer
Staples, 10.3
Non-
Lending
Longevity High Financials,
Mid Cap,
8.7
47% NBFC,
10.4 Pharmaceuticals,
15.1

Price PE: 24x FY24; PEG: 2.0x

Data as on 31st Dec 2021, Disclaimer: The Stocks mentioned above are used to explain the concept and is for illustration purpose only and should not be used for development or implementation of any investment strategy. It should not be construed as investment advice to any party.
The stocks may or may not be part of our portfolio/strategy/ schemes. Past performance may or may not be sustained in future

THINK EQUITY 41
THINK MOTILAL OSWAL Private and Confidential
Motilal Oswal Vision 2030 Fund
Exploring the Future

42
 Why 2020-30 Can be India’s Decade?

THINK EQUITY
THINK MOTILAL OSWAL
The Famed Journey to USD 5 Tn

There are only 9 economies with more than US 2 Tn GDP and the cross over to USD 5 Tn is a challenging one!

Country GDP (USD Tn)

5Tn+ GDP Economies USA 19.5

US, China, Japan
China 12.2

Japan 5.0

Germany 3.7
3-5Tn GDP Economy
Germany India 2.7

UK 2.6

France 2.6

2-3Tn GDP Economies Brazil 2.0

India, UK, Brazil, Italy, France
Italy 2.0

44
Source: Bloomberg research, Worldometers
 The national ambition – building a $6 Trillion Economy
6th USD tn
India’s GDP* trend in USD Tn 2 years
5 USD tn
th 9.1%
Per Capita Income  $ 998 $ 1,605 $ 1,927 3 years
6.1
4 USD tn
th 8.7%
3 years 5.2
9.1%
3rd USD tn
7 years 4.0
2nd USD tn 6.1%
7 years
7.7% 3.1
2.9
1st USD tn
^Period 58 years^ 2.0
^^GDP growth (cagr) 7.4%^^
1.2

~0.006 0.1

Every successive trillion dollar GDP is likely to take lesser number of years
*GDP is Nominal GDP. Source: MOAMC Internal Research 45
Disclaimer: The above graph/data is used to explain the concept and is for illustration purpose only. The data mentioned herein are for general and comparison purpose only and not a complete disclosure of every material fact. and
should not used for development or implementation of an investment strategy. Past performance may or may not be sustained in future.
 India expected to become 3rd largest economy at $6T by 2030
Decade wise Top 10 Economies (USD terms)

Rank 1980 1990 2000 2010 2020 2030E

1 United States United States United States United States United States China

2 Japan Japan Japan China China United States

3 Germany Germany Germany Japan Japan India

4 France France United Kingdom Germany Germany Japan

5 United Kingdom United Kingdom France France United Kingdom Germany

6 Italy Italy China United Kingdom India United Kingdom

7 Canada Canada Italy Brazil France France

8 Mexico Spain Canada Italy Italy Brazil

9 China China Mexico India Canada Canada

10 Spain Brazil Brazil Russia Korea Russia

Source: Bloomberg, IMF, 2030 estimates from CEBR (The Centre for Economics and Business Research)
History of Equity Markets compounding on economic growth
India has entered the critical move from a USD 2.5 trillion economy to a USD 6 trillion economy

The move marks the start of India’s second

structural growth phase
USD 6
trillion This crossover witnessed the strongest equity
GDP market returns for other economies.

12 years
Benchmark Movement
USA 1978 1990
Shanghai SE
(in USD) S&P 500 TRI
Composite Index
5 years
China 2005 2010 Index Value at 2.5 Tn 90 125
Index Value at 6.0 Tn 566 485
Returns ~6x ~4x
CAGR % 17% 31%
USD 2.5
trillion
GDP
47
Source: Bloomberg research
 NTDOP - Robust Long Term Compounder

GDP Growth Nifty 500 TRI NTDOP Performance

8.4x 3x movement of
NTDOP
4.8x performance v/s
2.8x GDP Growth
Between 2007 and
2022
Absolute Returns Since Inception

NTDOP Performance
84.0
78.5
SI Returns (CAGR)
58.0 57.5 NTDOP 16%
52.9 49.9
40.0 41.0 Nifty 500 11%
24.4 Alpha 5%
14.1 17.6
11.9 12.9
8.5

Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Mar-22
48
India - Vicious to Virtuous cycle

Corporate Profitability Aggressive Bad Loans

Improving Recognition by Banks

Corporate Capex Pick up Demonetization,2016

Corporate Expected RERA,2016

Credit Pick up

Resilient India Vicious IBC,2016

(External
Factors)

India in
Deleveraging GST, 2017
Virtuous

PLI schemes I&LFS Crisis,2019

Corporate Tax
COVID-19 Crisis,2020 49
Rate Cut Demand Recovery
 Headwinds to Tailwinds
Corp Profit / GDP (%) The bad asset cycle for banks is now in reversal
7.8 20%
7.3 Gross NPLs (% of loans)
6.3
6.3 6.5 6.3 5.7
5.1 15%
5.4 5.5
4.9 5.1 Bad asset cycle in reversal
4.7 4.8
4.3 4.3 4.5 4.7
3.8 10%
3.5 3.5
3.0 3.0 2.8
2.2 2.4 5%
1.9

0%

FY20

FY22E
FY23E
FY24E
FY25E
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19

FY21

FY99
FY97
FY98

FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22E
FY23E
FY24E
25 1.2 Gross D/E ratio of large listed companies goes down
ROE’s of listed companies make investments attractive
Deleveraging cycle
20 1.0 largely played out
ROE's could hit 12.5% by Deleveraging cycle
FY22; highest seen in 7yrs 0.8
15
0.6
10
0.4

5
0.2

0 0.0
(%)

FY08

FY15
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07

FY09
FY10
FY11
FY12
FY13
FY14

FY16
FY17
FY18
FY19
FY20
FY21
FY22E
FY05
FY00
FY01
FY02
FY03
FY04

FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22E

(x)

50
Source: Jefferies, ACE Equity, RBI; Corp Profit/GSP ratio data in green shows bull case scenario (data in black is base case scenario)
 Contribution of PLI scheme to GDP expected to jump 8x by FY27 (0.2% to 1.6%)
Capex breakup of 111 lakh Crore during FY22-27 8x jump expected in GDP contribution due to PLI Schemes
(FY22-FY27)
80 1.8%
As % of GDP
Digital Infra 70 1.6%
3%
Rural Incremental Domestic 1.4%
Infrastructure 60 Value addition due to PLI
Irrigation 7%
8% Scheme ($ Bn) 1.2%
Urban Agriculture 50
17% and food 1.0%
Airports 2% 40
Social
1% 0.8%
Ports infrastructure
1% 4% 30
0.6%
Industrial
Railways Infrastructure 20
0.4%
12% 3%
10 0.2%

Energy 0 0.0%
24% FY22 FY23 FY24 FY25 FY26 FY27
Roads
18% Mobile Autos Battery Pharma Food Textile Telecom Others

Indian infrastructure sector has a multiplier effect on other sectors PLI offers strength to India’s competitiveness across the globe

Source: Ministries/departments/state governments/private sector, RAVE, Credit Suisse and MOAMC estimates 51
 Investment Frameworks for Vision 2030

THINK EQUITY 52
THINK MOTILAL OSWAL
 Investment Framework

 Linear growth in the GDP =

 China+1 Exponential growth in
Trillion opportunities
 Rise of EVs Value
 Transition to 5G tech in telecom Migration Dollar  Discretionary spend is
exponentially linked to
 PSU to PVT
growth in the economy

Disruption

 New age technology start-ups challenging the

traditional way of businesses
 Renewable energy changing the dynamics of the
industry
Value Migration
New Business Models Emerge on Back of Shift in Economic Landscape

Technology

Easier
Cost Of
Access to
Capital
Funding
Value
Migration
Drivers
Lower
Switching Convenience
Cost

Innovation

Value migration occurs when there is a disconnect between customer priorities & existing business designs

Inter industry Inter company One segment to

Inter country
migration migration in same another in same
migration
in same country industry company
Example : Example : Example :
Example :
From western geographies Public Sector to Private
Railways to Airlines Voice to Data in Telecom
to Indian IT / Pharma Sector
54
Source: Motilal Oswal Report “Value Migration 2017
Value Migration

Shift from unorganized to organized Food & Increasing share of organized sector in
Grocery Retail Jewellery segment
7.3% Organized Unorganized
Size of Organized F&G
(USD Bn) 69
77% 76%
Organized F&G 71% 69% 67% 64% 62%
Penetration (RHS) 58%
4.3%
39% 42%
33% 36%
29% 31%
23% 24%
1.9% 25

FY13 FY19 FY24E FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E

International Value Migration (USD Bn) Global EV Penetration increase to be led by 2W’s and
Light Vehicles
Indian IT Services Global IT Services 1100
10%
E-Trucks 3%
960 0 2030 2025 2020

44%
E-Buses 29%
0
500 54%
E-Light Duty Vehicles 25%
215 5%
5 100
75%
2000 2014 2020 E-2-Wheelers 40%
20%
Source: Global EV Outlook 2021 –IAEA, Company Annual Reports, BARC
 Trillion Dollar
Rising per Capita Income = Larger Consumption Basket

3x Rise in Income = 10x Jump in Consumption Evolution of the household-income profile in India

Basic Spend

Discretionary Spend
4x 2200

Saving
10 x 2000
550
200
1100 1350

USD USD High Income & Upper Middle Segment comprise of

~1,850 ~5,550*
• 1 in 4 households today
• 1 in 2 households by 2030
Source: Motilal Oswal Wealth Creation Study
*Per Capita Income of $5,550 is assumed figure of 3x from current levels (consensus estimate of $1,850) Source: BCG CCI Proprietary Income Database 56
The above graph is used to explain the concept and is for illustration purpose only and should not used for Low income: <$4,000, Lower-mid: $4,000-8,500, Upper-mid: $8,500-40,000, High income: >$40,000
development or implementation of an investment strategy. Past performance may or may not be sustained in future. basis income per household in real terms;
Trillion Dollar
Favorable Factors for the Growth in Economy
No. of Cumulative Households in India Internet Penetration (%)
70.6
China India 64.6
59.2
53.2 54.3
47.9 50.3 48.5 50.0
6,33,000 45.8
42.3
38.3 38.0
4,12,000 34.8 34.4
2,94,000 27.0
200 3,000 13,000 23,000 5,64,00,000
15.1 18.0
10.1 12.6

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

USD 1bn INR 1000Cr INR 200Cr INR 100Cr INR 10Cr USD 1mn
Total Spending ($ Bn) China India
1390 1479
India working age popl (% of world) China working age popl (% of world)
24% 913 890 862
774 763
22% 618 546
360 444 359
20% 18.6%
184 189
18%
15.3%
16%
14%
1978

2011
1960
1963
1966
1969
1972
1975

1981
1984
1987
1990
1993
1996
1999
2002
2005
2008

2014
2017
2020
2023
2026
2029
2032
2035
2038

Source : Hurun India Wealth Report 2020, Statista

Trillion Dollar
Low Penetration & Household Leverage Offers Long-term Growth Opportunity
Household Debt as a % of GDP
Global AC Penetration
88% 100%
80% 91%
68% 70% 70%

54%
44%
30% 30%
23%
7%
10.2%

Global China Japan Malaysia Thailand India

India Brazil China Hong Thailand Malaysia USA UK
Kong

No. of AC Sales in India

Penetration of Consumer Durables across categories in India
80% 7.2
6.5
60% 5.5
4.7
35% 30% 3.9
3.7 3.4
17% 3 3 3.1
10% 2.7
7% 5%

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
58
Source: Statista, MO AMC Research
Trillion Dollar
Multiple Opportunities for next Decade
Car Sales Penetration (%) RE Premium Bike Sales ('000s)
12 609

2.4x 12x

74.6
2011 to 2021
2011 2021 2011 2021
2.5x
Refrigerators Penetration (%) Washing Machines Penetration (%)
35
Per Capita
Income 15
2.2x 2x
15.5 7.3

2011 2021 2011 2021 59

Source: MO AMC Research; Penetration is in terms of number of households
Disruption
Multiple Sectors offering Opportunity for Disruption

E– OTT /
Food Tech Health Tech Ed Tech Fintech
Commerce Gaming/ Ent

Illustrative list

Size (USD bn) 45.0 4.0 0.7 0.9 3.0 80.0 (txn value)

Who is getting Traditional Restaurant Pharmacy Coaching Traditional Media

Traditional Banks
disrupted? Retail Chains Stores Institutes / Multiplexes

Ancillary
Segments/Key
enablers
Key drivers Demographics, Internet penetration, Simple yet robust financial eco-system, ‘Work from Home’

Consumer Tech: Leveraging technology/internet to serve a consumer need at scale

Source: Company, BofA Global Research, Citi Research, Note: Size refers to GMV or Gross Merchandise Value 60
 Disruption
Leveraging India’s Internet Stack
1.26 billion INR 4.94 trillion 677 million since
(up from 600 million (up from 1.5 trillion in 2020) inception (2017)
in 2014) Value of transactions done Returns filed on GSTN network

Large unmet demand

< 100mn Mutual Fund folios

< 26mn NSE active Demats

< 60mn Credit Cards

< 50mn Retail Health Insurance

Source: InvestCorp, Sep 2021 Report

THINK EQUITY 18
THINK MOTILAL OSWAL
Disruption
Tech – Long runway for market cap growth

Tech sector is only 14% of BSE500 while 36% of S&P500

India’s Tech is expected to witness steep growth
Significant Headroom for Listed Tech in India to Grow

Internet and Digital IT Services Others Valuation Growth of Top 100

Tech Companies in India 700 to 1000
($ Bn)

64%

86%

250

31% 60

13%
1% 5% 2015 2020 2025E
BSE 500 Index S&P 500 Index

Source: InvestCorp, Sep 2021 Report 62

 Unlocking Value through Unlisted Space

THINK EQUITY 63
THINK MOTILAL OSWAL
Investment Strategy

Invest in early stage companies; pre–IPOs; near-

Listed Unlisted IPOs; at stage of DRHP filed (anchor)
Equities Soonicorns
0-100% 0-49% Leverage deal sourcing capabilities of MOPE

Value
Trillion Dollar Disruption
Migration

• 0-100% of portfolio in listed equities

• 0-49% of portfolio in unlisted equities
• Both listed and unlisted equities to be selected from 3 themes of Value Migration,Trillion Dollar & Disruption
• 0-20% flexibility to invest in bottom up opportunities (either listed or unlisted) outside of the 3 themes
 MO Private Equity - Proven performance in high-quality investing
Fund I Fund II Fund III
~INR 550 Cr ~INR 1,000 Cr ~INR 2,300 Cr

Vintage 2007 2013 2018

Investments 13 11 9

Exits 13 (fully exited) 1 complete 90% (committed)

Portfolio Gross IRR 26.8% 18.1% 45.6%

Portfolio MOIC 6.1x 2.7x 2.4x

Performance for Fund II & III as on September 30, 2021 based on 3rd party valuation. Gross IRR and MOIC is at portfolio level (i.e. for both domestic and offshore fund)
MOIC is Multiple on Invested Capital
 Investment Philosophy

THINK EQUITY 66
THINK MOTILAL OSWAL
Virtue of Long Term Investing

To make money in stocks you must have –

 the Vision to see them
 the Courage to buy them &
 the Patience to hold them

Patience is the rarest of the three.

- Thomas Phelps
Author, 100 to 1 In The Stock Market

67
Motilal Oswal Asset Management – Thought  Philosophy  Action

25+ Years of Thought Leadership –

Wealth Creation Studies

Q G
Documented and Distilled Investment Philosophy
Investment Philosophy
L P

What is at stake?
Skin In The Game - WE invest
heavily in our funds along with investors ~4,225 Cr
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 holds various post graduate degrees including an MBA in Finance,

Manish Sonthalia FCA, Company Secretary (CS) and Cost & Works Accountancy (CWA).

69
 Key Terms & Structure of the Fund

Name of the
Motilal Oswal Vision 2030 Fund
Fixed Fee Structure
scheme

Type Category III, close ended scheme Lumpsum

Min Capital
Management
SIP Classes Commitment
Classes Fee
6 years from final closing with 2 year (Rs Crores)
Tenure
extension subject to approval
B1 B5 2<5 2.50%
No. of stocks Upto 30 stocks (inclusive of unlisted)
B2 B6 5 < 10 1.75%
Market cap Flexi, shall invest across market cap
B3 B7 10 < 25 1.50%
Benchmark Nifty 500

30% of the Capital Commitment and B4* B8* >= 25 1.25%

Initial
balance at the discretion of the Investment
Drawdown
Manager.

Lock In 24 Months from final closing

>2 and <3 yrs – 3%

>3 and <4 yrs – 2% *B4 and B8 are eligible for Co-investment in Unlisted Equity
Exit Load Please refer PPM for further details.
>4 and <6 yrs – 1% In case of defaults in SIP/drawdown, penalty of 8% + GST shall be levied on entire Capital Commitment. Please
> 6 yr – Nil refer PPM for further details.
70
 Thank you

THINK EQUITY
THINK MOTILAL OSWAL