Do you own this fund that delivered over 24% returns in last one year?
5paisa Research Team
Last Updated: 16th December 2022 - 04:46 pm
In trailing one year, markets delivered even lower returns than a savings bank account. However, this mid-cap fund delivered over 24%. Read on to find out more about this stock.
In the trailing one year, S&P BSE Sensex delivered returns of 3.08% which is lower than that of your bank’s savings account. This can very well be attributed to the selling pressure from the Foreign Institutional Investors (FII), who have been consistently selling since October 2021.
Even the broader market indices were negative underperforming the frontline indices. S&P BSE Mid-Cap Index and S&P BSE Small-Cap Index delivered negative returns of 0.5% and 0.18%, respectively.
Despite this, in last one year Motilal Oswal Mid-Cap 30 (Direct Plan) delivered returns of 24.35%. This fund has successfully outperformed S&P BSE Mid-Cap Index in last one year.
|
Trailing Returns (%) |
YTD |
1-Year |
3-Year |
5-Year |
7-Year |
|
Motilal Oswal Midcap 30 |
-1.8 |
24.8 |
24.4 |
13.3 |
13.3 |
|
S&P BSE 150 MidCap TRI |
-7.7 |
2.0 |
22.2 |
12.7 |
14.3 |
|
Category Average |
-6.9 |
4.3 |
21.4 |
12.5 |
13.4 |
As can be seen, Motilal Oswal Mid-Cap 30 fund has outperformed its category as well as its benchmark in all the trailing periods. Even in terms of risk, this fund stands out.
|
Risk Statistics |
Mean |
Std Dev |
Sharpe |
Sortino |
Beta |
Alpha |
|
Motilal Oswal Midcap 30 |
22.11 |
24.68 |
0.75 |
0.68 |
0.92 |
2.50 |
|
S&P BSE 150 MidCap TRI |
20.94 |
25.28 |
0.69 |
0.72 |
- |
- |
|
Category Average |
19.82 |
23.71 |
0.69 |
0.73 |
0.91 |
0.45 |
In the above table, we can observe that when compared to its category, this fund seems to be a bit risky. However, compared to its benchmark it still does better. But when it comes to risk-adjusted returns as measured by the Sharpe ratio, this fund stands out.
The only concern is its Sortino ratio which considers negative standard deviation as against standard deviation in the Sharpe ratio. This means that its standard deviation on the negative side is on the higher end. Therefore, we can say that this is a high-risk – high-reward fund.
Moreover, as it holds a concentrated portfolio of a mere 25 to 30 stocks. Investors with conservative to moderate risk profiles should avoid investing in them. However, aggressive investors can consider investing in it as a part of their satellite portfolio.
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