- BUY RIGHT : SIT TIGHT

Transcription

1 F A C T S H E E T August 2014 Dear Investors and my dear advisor friends, July, August, September and October typically tend to mark the months which for our industry may be called as conference season. These conferences are ones where mutual fund industry professionals, distributors and advisors alike get together to discuss and debate on issues. Issues range from across the industry's operations like fund performance, products, service et al. I was particularly intrigued by one question that was asked by an advisor friend of mine to a panel of experts discussing some trends in the mutual fund industry. He submitted to the panel that investors find it difficult to buy mutual fund schemes because they have complicated names like Dynamic Plan, MultiCap Fund, FlexiCap Fund, Balanced Advantage Fund or in case of Motilal Oswal Mutual Fund the Focused series of funds with names like MOSt Focused 25, MOSt Focused MidCap 30 and MOSt Focused MultiCap 35. It goes without saying that such names like MOSt Focused MidCap 30 are not likely to be understood by investor. This is because the name describes how the portfolio is constructed rather than describing what benefit it provides to investors or where it fits in an investor's mutual fund investment portfolio. MOSt Focused MidCap 30 says that this fund has a concentrated portfolio with at most 30 stocks which would be from the mid-market capitalization range not very large companies but not too small. This is much like the practice in pharmaceutical business where the names describe the drug rather than telling the patient what the drug will do. For example, some surfing on the net tells me that common drugs used to cure typhoid are Ciprofloxacin, Erythromycin, Levofloxacin, Norfloxacin, Ofloxacin etc. Now the trade names of these drugs marketed by pharmaceutical companies are all such that they tell the Doctor what drug is contained in the medicine e.g. Actiflox or Levacloz or Bactoquin etc. I did not find any name like typhoid-buster or typhoid-king or what the MF industry could call typhoid-cure-plan! Why is that? Why can't they have names that are easily understood by the end consumer? That's because one particular drug can be used to cure multiple ailments which may all emanate from bacterial infections. All the above drugs are used to cure bacterial infections and typhoid is one of them. Combinations of drugs may be used to cure different types of ailments and hence naming a drug something like typhoid-buster would result in limiting its usage and conveying a faulty impression. More importantly, the products we are talking about here are prescription based on not over- the- counter or OTC as is widely understood. They need to be consumed under advice from a Medical Doctor. Well yes, clearly there are OTC drugs with more popular names that could be given to you by a doctor and you could all the same buy it from the drug store by common knowledge the kind of stuff used to cure headaches. We all know we could buy paracetamol sold under any of the familiar brand names. But that works when it's a common headache you are looking to cure and not typhoid! Our Investment philosophy - BUY RIGHT : SIT TIGHT (Continued overleaf) Buy Right Quality : Quality of business and management Growth : Growth in earnings and sustained RoE Longevity : Longevity of the competitive advantage /economic moat of the business Price : 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 business to enable our investors to benefit from the entire growth cycle, needs even more skill. Focus: Our portfolios are high conviction portfolios with 20 to 25 stocks being our ideal number. We believe in adequate diversification but over-diversification results in diluting returns for our investors and adding market risk. 1

2 MOSt Focused MidCap 30 Fund is suitable for long term wealth creation over a period of say 5 years and considering that it invests only in small and mid market capitalization stocks, it's return and risk profile is higher than that of MOSt Focused 25 which invests only in large market capitalization companies or MOSt Focused MultiCap 35 which spreads your money across large, mid and small market capitalization stocks. Now, there are various purposes in your life goals for which you might want to create wealth over the next 5 years this could range from your child's education to purchasing some asset or just to ensure some surplus monies are to good use. If hypothetically, we were to call this fund MOSt Children's Education Fund, it doesn't mean the fund is not good for an asset purchase corpus to be accumulated over next 5 years. This entire thought process opened a pandora's box in my mind. Do investors treat their investment and finance related problems like a common headache and therefore are they looking to merely buy something like a popularly branded paracetamol? Are we in the mutual fund industry in a business where we are providing over-the-counter products or are mutual funds meant to be prescription products? What do you think about this? Do write to me at aashishps@motilaloswal.com because while I may have my opinion and experiences, it will be nice to know what you think about this. So coming back to my friend's question and my answer to him. My opinion and my company's perspective on this is that a mutual fund product is like a generic drug. We name our products to be able to communicate to the Doctor or financial advisor in this case what the product is composed of and he or she should know what different uses this product can be put to for your financial plan. I am not for one moment trying to compare or over-simplify or even complicate an industry or business but the intention here is to use an example to explain that some products are best consumed under advice. And apart from knowledge and information that a third party advisor can provide, the very fact that he or she is a third party in itself is of immense value. This does not mean that there are no knowledgeable investors and I do not think that mutual fund investing though complicated can be as complicated or life threatening as administering drugs to one-self. But knowledge investors would actually appreciate and prefer a mid-cap fund being called just that and not something like a child's education plan or early retirement plan! So the next time you are attracted by fancy nomenclature of any financial product may it be a mutual fund, insurance, a mortgage or a credit card, please consult your financial advisor and ascertain what purpose it can serve in your financial life. After all, as a famous adage goes What's in a name? That which we call a rose by any other name would smell as sweet. Aashish P Somaiyaa Managing Director and CEO Motilal Oswal Asset Management Company Ltd. 2

3 Product Suitability Name of the Scheme This product is suitable for investors who are seeking* Motilal Oswal MOSt Focused 25 Fund Return by investing in upto 25 companies with long term sustainable competitive advantage and growth potential Investment in Equity and equity related instruments subject to overall limit of 25 companies High risk (BROWN) Motilal Oswal MOSt Focused Midcap 30 Fund (MOSt Focused Midcap 30) Motilal Oswal MOSt Focused Multicap 35 Fund (MOSt Focused Multicap 35) Motilal Oswal MOSt Ultra Short Term Bond Fund Motilal Oswal MOSt Shares M50 ETF (MOSt Shares M50) Motilal Oswal MOSt Shares Midcap 100 ETF (MOSt Shares Midcap 100) Motilal Oswal MOSt Shares NASDAQ-100 ETF (MOSt Shares NASDAQ 100) Motilal Oswal MOSt 10 Year Gilt Fund (MOSt 10 Year Gilt Fund) Long-term capital growth Investment in equity and equity related instruments in a maximum of 30 quality midcap companies having long-term competitive advantages and potential for growth High risk (BROWN) Long-term capital growth Investment in a maximum of 35 equity and equity related instruments across sectors and market capitalization levels. High risk (BROWN) Optimal returns consistent with moderate levels of risk Investment in debt securities and money market securities with average maturity less than equal to 12 months Low risk (BLUE) Return that corresponds generally to the performance of the MOSt 50 Basket (Underlying Basket), subject to tracking error Investment in equity securities of CNX Nifty Index High risk (BROWN) Return that corresponds generally to the performance of the CNX Midcap 100 Index, subject to tracking error Investment in equity securities of CNX Midcap Index High risk (BROWN) Return that corresponds generally to the performance of the NASDAQ 100 Index, subject to tracking error Investment in equity securities of NASDAQ 100 Index High risk (BROWN) Long term capital appreciation Investment in securities issued by the Central Government and State Government. Low risk (BLUE) Motilal Oswal MOSt Shares Gold ETF (MOSt Gold Shares) Return by investing in Gold Bullion, subject to tracking error over long term Investment in Gold Bullion High risk (BROWN) *Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Note: Risk is represented as (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk Risk Disclosure and Disclaimer Statutory Details: Constitution: Motilal Oswal Mutual Fund has been set up as a trust under the Indian Trust Act, Trustee: Motilal Oswal Trustee Company Ltd. Investment Manager: Motilal Oswal Asset Management Company Ltd. Sponsor: Motilal Oswal Securities Ltd. Risk Factors: (1) All Mutual Funds and securities investments are subject to market risks and there can be no assurance that the Scheme's objectives will be achieved (2) As the price / value / interest rates of the securities in which the Scheme invests fluctuates, the Net Asset Value (NAV) of units issued under the Scheme may go up or down depending upon the factors and forces affecting the securities market (3) Past performance of the Sponsor/AMC/Mutual Fund and its affiliates does not indicate the future performance of the Scheme and may not provide a basis of comparison with other investments (4) The name of the Schemes does not in any manner indicate the quality of the Schemes, its future prospects and returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Scheme (5) The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Mutual Fund beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund (6) The present Schemes are not guaranteed or assured return Schemes. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. IISL Disclaimer: MOSt Shares M50: The MOSt 50 Basket is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). MOSt 50 Basket has been developed by MOAMC and IISL has calculated and maintained as per the specifications and requirements of MOAMC. IISL does not make any representation or warranty, express or implied regarding the advisability of investing in the products linked to MOSt 50 Basket and availing the services generally or particularly or the ability of MOSt 50 Basket to track general stock market performance in India. Please read the full Disclaimers in relation to the MOSt 50 Basket in the Scheme Information Document. MOSt Shares Midcap 100: MOSt Shares Midcap 100 offered by Motilal Oswal Asset Management Company Limited (MOAMC) or its affiliates is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL) and its affiliates. IISL and its affiliates do not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) to the owners of MOSt Shares Midcap 100 or any member of the public regarding the advisability of investing in securities generally or in the MOSt Shares Midcap 100 linked to CNX Midcap Index or particularly in the ability of CNX Midcap Index to track general stock market performance in India. Please read the full Disclaimers in relation to the CNX Midcap Index in the Scheme Information Document. NASDAQ-100 Disclaimer: MOSt Shares NASDAQ 100: NASDAQ, OMX, NASDAQ OMX, NASDAQ-100, and NASDAQ-100 Index, are registered trademarks of The NASDAQ OMX Group, Inc. (which with its affiliates is referred to as the Corporations ) and are licensed for use by MOAMC. MOSt Shares NASDAQ 100 (the Product) has not been passed on by the Corporations as to their legality or suitability. The Product are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT. NSE Disclaimer: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Scheme Information Document. BSE Disclaimer: It is to be distinctly understood that the permission given by Bombay Stock Exchange Ltd. should not in any way be deemed or construed that the SID has been cleared or approved by Bombay Stock Exchange Ltd. nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the Disclaimer Clause of the Bombay Stock Exchange Ltd. 3 RR00004_40112_010

4 Motilal Oswal Mutual Fund MOSl Focused 25 Fund (An open ended Equity Scheme) About the Scheme Scheme Name Type of Scheme Investment Objective Continuous Offer Redemption proceeds Entry / Exit Load Motilal Oswal MOSt Focused 25 Fund An Open Ended Equity Scheme The investment objective of the Scheme is to achieve long term capital appreciation by investing in upto 25 companies with long term sustainable competitive advantage and growth potential. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved. CNX Nifty Index Minimum Application Amount : `5,000/- and in multiples of `1 /- thereafter. Additional Application Amount : `1,000/- and in multiples of `1/- thereafter. Normally within 3 Business days from acceptance of redemption request. Nil Scheme Details Date of Allotment 13 May 2013 Growth Plan ` NAV Dividend Plan ` Direct Growth Plan ` Direct Dividend Plan ` Quarterly AAUM (June 30th, 2014) ` (` crores) Regular Plan 2.50% p.a. Total Expense Ratio^ Direct Plan 1.00% p.a. Standard Deviation# (per month) Sharpe Ratio 1.00 (per month) Portfolio Turnover Ratio 0.66 Beta* 0.80 R-Squared* 0.79 ^Since inception till date, excluding applicable taxes. *Against the benchmark CNX Nifty Index. # Risk free returns based on 365-days T-bill cut-off of 8.92% as on the last auction. * Mr. Taher Badshah Experience He has 19 years of experience in fund management and investment research. He has been managing this fund since inception. Performance : Date Since Inception till June 30, 2014 June 30, 2013 to June 30, 2014 Industry Allocation Industry classification as recommended by AMFI Holdings Sr. No Scrip HDFC Bank Limited Tata Consultancy Services Limited Housing Development Finance Corporation Limited Kotak Mahindra Bank Limited Container Corporation of India Limited Tech Mahindra Limited Colgate Palmolive (India) Limited Pidilite Industries Limited Eicher Motors Limited Divi's Laboratories Limited Oil & Natural Gas Corporation Limited United Spirits Limited Hero MotoCorp Limited Cairn India Limited Maruti Suzuki India Limited Larsen & Toubro Limited Tata Motors Limited Tata Motors DVR 'A' CRISIL Limited Cummins India Limited Weightage in F25 Mr. Taher Badshah is also the fund manager for the scheme, Motilal Oswal MOSt Focused Midcap 30 Fund. Returns for which has not been provided as the scheme has not completed 1 year. * For Debt Component : Mr. Abhiroop Mukherjee Scheme MOSt Focused 25 Fund Returns%^ 21.43% 31.23% CNX Nifty Returns (%)* 23.75% 30.28% NAV per unit : Rs (May 13, 2013); Rs (June 28, 2013); Rs (June 30, 2014) Returns for one year are absolute. Returns for more than one year are compounded annualized; Incase, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of returns. *Also represents Additional ^Past performance may or may not be sustained in the future. Auto Banks Software Finance Consumer Non Durables Oil Transportation Chemicals Pharmaceuticals Construction Project Industrial Products Cash & Equivalent 1.07% 1.84% 4.69% 3.82% 5.88% 5.54% 8.62% 10.42% 10.20% 14.58% 14.26% 19.08% Current Value of Standard Investment of Rs MOSt Focused 25 Fund Returns (INR)^ CNX Nifty Returns (INR) 12,457 12,727 N.A. 8.56% 8.43% 7.77% 6.02% 5.88% 5.83% 5.73% 5.54% 5.21% 4.69% 4.68% 4.47% 4.33% 3.94% 3.87% 3.82% 2.94% 2.73% 2.65% 1.07% 4

5 Motilal Oswal Mutual Fund MOSl Focused MIDCAP I 30 Fund (An open ended Equity Scheme) About the Scheme Scheme Name Type of Scheme Investment Objective Continuous Offer Redemption proceeds Entry / Exit Load Motilal Oswal MOSt Focused Midcap 30 Fund (MOSt Focused Midcap 30) An Open Ended Equity Scheme The investment objective of the Scheme is to achieve long term capital appreciation by investing in a maximum of 30 quality midcap companies having long-term competitive advantages and potential for growth. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved. CNX Midcap Index Minimum Application Amount: Rs. 5,000/- and in multiples of Re. 1/- thereafter. Additional Application Amount: Rs. 1,000/- and in multiples of Re. 1/- thereafter. Normally within 3 Business days from acceptance of redemption request. Nil Scheme Details Date of Allotment 24 Feb 2014 Growth Plan ` NAV Dividend Plan ` Direct Growth Plan ` Direct Dividend Plan ` Quarterly AAUM (June 30th, 2014) `83.81 (` crores) Regular Plan 2.50% p.a. Total Expense Ratio^ Direct Plan 1.00% p.a. Standard Deviation# 6.73 (per month) Sharpe Ratio 0.18 (per month) Portfolio Turnover Ratio 0.16 Beta* 0.92 R-Squared* 0.85 ^Since inception till date, excluding applicable taxes. *Against the benchmark CNX Midcap Index. # Risk free returns based on 365-days T-bill cut-off of 8.92% as on the last auction. * Mr. Taher Badshah Experience He has 19 years of experience in fund management and investment research. He has been managing this fund since inception. Industry Allocation Finance Consumer Durables Consumer Non Durables Pharmaceuticals Construction Project Banks Software 6.01% Industrial Products 5.85% Transportation 5.40% Retailing 4.89% Textile Products 4.79% Industrial Capital Goods 4.35% Auto 3.81% Auto Ancillaries 2.15% Cash & Equivalent 1.81% 8.63% 8.42% 8.26% 7.94% 10.89% 16.80% Holdings Sr. No. Scrip Weightage in F CRISIL Limited Mindtree Limited Supreme Industries Limited Havells India Limited Gujarat Pipavav Port Limited Bata India Limited Engineers India Limited Jubilant Foodworks Limited Trent Limited Page Industries Limited IPCA Laboratories Limited City Union Bank Limited Repco Home Finance Limited Thermax Limited Sundaram Finance Limited Ajanta Pharma Limited Tvs Motor Company Limited Procter & Gamble Hygiene and Health Care Limited ING Vysya Bank Limited Voltas Limited WABCO India Limited Capital First Limited 6.99% 6.01% 5.85% 5.58% 5.40% 5.31% 5.02% 4.93% 4.89% 4.79% 4.58% 4.51% 4.39% 4.35% 3.90% 3.84% 3.81% 3.70% 3.43% 3.24% 2.15% 1.52% Industry classification as recommended by AMFI Returns for MOSt Focused Midcap 30 Fund are not provided because the scheme has not completed 1 year. Mr. Taher Badshah is also the fund manager for the scheme, Motilal Oswal MOSt Focused 25 Fund. Returns for which has been provided on page no. 4 * For Debt Component : Mr. Abhiroop Mukherjee 5

6 Motilal Oswal Mutual Fund 35 Fund (An open ended diversified Equity Scheme) MOSl Focused multicap About the Scheme Scheme Name Type of Scheme Investment Objective Continuous Offer Redemption proceeds Entry / Exit Load * Motilal Oswal MOSt Focused Multicap 35 Fund (MOSt Focused Multicap 35) An Open Ended Diversified Equity Scheme The investment objective of the Scheme is to achieve long term capital appreciation by primarily investing in a maximum of 35 equity & equity related instruments across sectors and marketcapitalization levels. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved. CNX 500 Index Minimum Application Amount: Rs. 5,000/- and in multiples of Re. 1/- thereafter. Additional Application Amount: Rs. 1,000/- and in multiples of Re. 1/- thereafter. Normally within 3 Business days from acceptance of redemption request. Nil Mr. Gautam Sinha Roy Experience Scheme Details Date of Allotment NAV Quarterly AAUM (June 30th, 2014) Total Expense Ratio^ Standard Deviation# Sharpe Ratio Portfolio Turnover Ratio Beta* R-Squared* 28 Apr 2014 Growth Plan Dividend Plan Direct Dividend Plan ` ` Direct Growth Plan ` ` (` crores) Regular Plan Direct Plan 5.29 (per month) 1.08 (per month) ` He has close to 11 years of experience in the fund management and investment research. He has been managing this fund since 5th May % p.a. 1.00% p.a. ^Since inception till date, excluding applicable taxes. *Against the benchmark CNX 500 Index. # Risk free returns based on 365-days T-bill cut-off of 8.92% as on the last auction. Industry Allocation Holdings Sr. No. Scrip Weightage in F35 Finance Software Banks Pharmaceuticals Auto Consumer Non Durables Transportation Auto Ancillaries Consumer Durables Industrial Products Financials Cash & Equivalent 0.86% 3.62% 3.48% 4.88% 5.41% 6.76% 14.11% 13.83% 12.77% 11.89% 11.60% 10.79% Tata Consultancy Services Limited Ajanta Pharma Limited Sundaram Finance Limited Housing Development Finance Corporation Limited HDFC Bank Limited Gujarat Pipavav Port Limited Tech Mahindra Limited Eicher Motors Limited Colgate Palmolive (India) Limited State Bank of India Hero MotoCorp Limited Bosch Limited United Spirits Limited Bata India Limited IPCA Laboratories Limited Supreme Industries Limited Berkshire Hathaway 7.41% 7.17% 7.09% 7.02% 6.91% 6.76% 6.42% 6.05% 5.90% 5.86% 5.55% 5.41% 4.89% 4.88% 4.72% 3.62% 3.48% Industry classification as recommended by AMFI Returns for MOSt Focused Multicap 35 Fund are not provided because the scheme has not completed 1 year. * For Debt Component : Mr. Abhiroop Mukherjee * For Foreign securities : Mr. Anubhav Srivastava 6

7 Motilal Oswal Mutual Fund Mosl ULTRA SHORT TERM BOND FUND (An open ended Debt Scheme) About the Scheme Scheme Name Type of Scheme Investment Objective Continuous Offer Redemption proceeds Redemption proceeds Entry / Exit Load Motilal Oswal MOSt Ultra Short Term Bond Fund An Open Ended Debt Scheme The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved. CRISIL Short Term Bond Fund Index Minimum Application Amount : `5,000/- and in multiples of `1/- thereafter. Additional Application Amount : `1000/- and in multiples of `1/- thereafter. Normally within 1 Business day from acceptance of redemption request. Nil Scheme Details Date of Allotment NAV 6 September 2013 Direct Plan- Growth Direct Plan-Daily Dividend Option Direct Plan-Fortnightly Dividend Option Regular Plan- Growth Regular Plan-Daily Dividend Option Regular Plan-Fortnightly Dividend Option ` Regular Plan-Monthly Dividend Plan Regular Plan-Weekly Dividend Option Regular Plan - Quarterly Dividend Quarterly AAUM (June 30th, 2014) `34.77 (` crores) Total Expense Ratio^ ^Year-to-date, excluding applicable taxes. Regular Plan Direct Plan 1.00% p.a. 0.25% p.a. ` ` ` ` ` ` ` ` Portfolio Security Issuer % of holding (as on ) Oriental Bank of Commerce CD IDBI Bank Limited CD Axis Bank Limited CD Reverse REPO / Cash / Other Oriental Bank of Commerce IDBI Bank Limited Axis Bank Limited Dividend History Record Date Dividend Option Dividend per Unit (Rs.) June 27, Cum Dividend NAV Ex Dividend NAV* Past performance may or may not be sustained in the future; Dividend distribution is subject to availability & adequacy of distributable surplus. After the payment of dividend, the per unit NAV falls to the extent of the dividend payout and distribution taxes, if any. Performance of dividend plan/option would be net of applicable statutory levy, if any. * NAV on the 1st transaction day after Record Date, which includes the mark to market impact also. Experience Mr. Abhiroop Mukherjee He has over 6 years of experience in the Financial Services Industry. He has been managing this fund since inception. *For USTBF Modified Duration is equal to its Average maturity. Returns for MOSt Ultra Short Term Bond Fund are not provided because the scheme has not completed 1 year. NOTE : Mr. Abhiroop Mukherjee is also fund manager for MOSt 10 Year Gilt Fund. The returns for which are on page no. 11. Quantitative Indicators Average Maturity * YTM Years / days % 7

8 Motilal Oswal Mutual Fund (An open ended Exchange Traded Fund) About the Scheme Scheme Name Type of Scheme Investment Objective Continuous Offer Motilal Oswal MOSt Shares M50 ETF (MOSt Shares M50) An open ended Exchange Traded Fund The Scheme seeks investment return that corresponds (before fees and expenses) generally to the Performance of the MOSt 50 Basket (Underlying Basket), subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved. MOSt 50 Basket and CNX Nifty Index On NSE: Investors can buy/sell units of the Scheme in round lot of 1 unit and in multiples thereof. Directly with the Mutual Fund: Investors can buy/sell units of the Scheme only in creation unit size i.e. 50,000 units and in multiples thereof. Scheme Details Date of Allotment NAV - Growth Plan Quarterly AAUM (June 30th, 2014) Tracking Error* Total Expense Ratio^ Standard Deviation Sharpe Ratio# Portfolio Turnover Ratio 28 July 2010 ` `34.15 (` crores) 0.30% (Annualised) 1.25% p.a (Annualised) 0.01 (Annualised) 0.82 MOSt 50 CNX Nifty Beta R-Squared *Against the benchmark MOSt 50 Basket ^Year-to-date, excluding applicable taxes. #Risk free returns based on 365- days T-bill cut-off of 8.70 % as on the last auction. NSE & BSE Symbol M50 ISIN Code INF247L01015 Redemption proceeds Normally within 3 Business days from acceptance of redemption request. Bloomberg Code Reuters Code MOSTM50 M50.NS Entry Load Exit Load NIL NIL Mr. Anubhav Srivastava Experience He has 18 years of experience in the Financial Services Industry. He has been managing this fund since Jan 20, MOSt Shares M50 Performance Date Since Inception till June 30, 2014 June 30, 2013 to June 30, 2014 June 30, 2012 to June 30, 2013 June 30, 2011 to June 30, 2012 Scheme MOSt Shares M50 Returns^ 9.21% 44.48% 5.18% -5.26% MOSt 50 Basket Returns 10.55% 46.59% 6.41% -4.65% Current Value of Standard Investment of Rs. 10,000/- CNX Nifty Returns* 9.15% 30.28% 10.67% -6.53% MOSt Shares M50 Returns (INR) ^ MOSt 50 Basket Returns (INR) 14,132 14,825 N. A. CNX Nifty Returns (INR) 14,101 NAV per unit : Rs (June 30, 2014); Rs (June 30, 2013) ; Rs (June 30, 2012) ; Rs (June 30, 2011) ; Rs (July 28, 2010) Returns for one year are absolute. Returns for more than one year are compounded annualized; Incase, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of returns. *Also represents Additional ^Past performance may or may not be sustained in the future. Industry Allocation Banks Software Auto Power Finance Cement Construction Ferrous Metals Consumer Non Durables Petroleum Products Gas Pharmaceuticals Minerals/Mining Oil Non - Ferrous Metals Telecom -Services Construction Project Industrial Capital Goods Cash & Equivalent 1.09% 0.72% 0.61% 0.59% 0.58% 1.83% 2.52% 2.11% 3.53% 4.87% 4.64% 4.51% 6.55% 7.62% 9.65% 9.23% 8.84% 11.91% 18.60% Sr. No Top 10 Holdings 10 Scrip Axis Bank Limited DLF Limited Wipro Limited Housing Development Finance Corporation Limited Mahindra & Mahindra Limited Tata Power Company Limited Tata Steel Limited Infosys Limited State Bank of India Bharat Petroleum Corporation Limited Weightage in M50^ 7.94% 6.55% 5.81% 5.02% 4.86% 4.78% 4.38% 4.29% 4.06% 3.94% Industry classification as recommended by AMFI NOTE : Mr. Anubhav Srivastava is also the fund manager for MOSt Shares Midcap 100, MOSt Shares NASDAQ 100 and MOSt Gold Shares, the performance of which is mentioned on page no. 9, 10 and 12 respectively and for MOSt Focused Multicap 35 fund for foreign security. ^MOSt Shares M50 8

9 Motilal Oswal Mutual Fund IMidcap 100 (An open ended Index Exchange Traded Fund) About the Scheme Scheme Name Type of Scheme Investment Objective Motilal Oswal MOSt Shares Midcap 100 ETF (MOSt Shares Midcap100) An open ended Index Exchange Traded Fund The Scheme seeks investment return that corresponds (before fees and expenses) to the performance of CNX Midcap Index (Underlying Index), subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved. Scheme Details Date of Allotment NAV - Growth Plan Quarterly AAUM (June 30th, 2014) Tracking Error* Total Expense Ratio^ Standard Deviation Sharpe Ratio# Portfolio Turnover Ratio 31 January 2011 ` ` (` crores) 0.40% (Annualised) 1.00% p.a (Annualised) 0.09 (Annualised) 0.98 CNX Midcap Index Beta* 1.00 Continuous Offer On NSE/BSE: Investors can buy/sell units of the Scheme in round lot of 1 unit and in multiples thereof. Directly with the Mutual Fund: Investors can buy/sell units of the Scheme only in creation unit size i.e. 2,50,000 units and in multiples thereafter. R-Squared* 1.00 *Against the benchmark CNX Midcap Total Return Index ^Year-to-date. # Risk free returns based on 365-days T-bill cut-off of 8.92% as on the last auction. NSE / BSE Symbol M100 ISIN Code INF247L01023 Redemption proceeds Normally within 3 Business days from acceptance of redemption request. Bloomberg Code Reuters Code MOST100 M100.NS Entry Load Exit Load NIL NIL Mr. Anubhav Srivastava Experience He has 18 years of experience in the Financial Services Industry. He has been managing this fund since Jan 20, MOSt Shares Midcap 100 Performance Date Since Inception till June 30, 2014 June 30, 2013 to June 30, 2014 June 30, 2012 to June 30, 2013 June 30, 2011 to June 30, 2012 Industry Allocation Scheme 11.55% 52.82% 0.60% -6.78% CNX Midcap Index Returns 10.37% 51.13% -0.13% -7.77% Current Value of Standard Investment of Rs. 10,000/- CNX Nifty Returns* 9.95% 30.28% 10.67% -6.53% Top 10 Holdings Sr. No MOSt Shares Midcap100 Returns (INR) ^ Scrip Adani Ports and Special Economic Zone Limited Adani Enterprises Limited Motherson Sumi Systems Limited Reliance Infrastructure Limited UPL Limited Container Corporation of India Limited Power Finance Corporation Limited Aurobindo Pharma Limited Divi s Laboratories Limited Glenmark Pharmaceuticals Limited CNX Midcap Index Returns (INR) 14,523 14,007 CNX Nifty Returns (INR) NAV per unit : Rs (June 30, 2014); Rs (June 30, 2013); Rs (June 30, 2012); Rs (June 30, 2011); Rs (Jan 31, 2011) Returns for one year are absolute. Returns for more than one year are compounded annualized; Incase, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of returns. *Also represents Additional ^Past performance may or may not be sustained in the future. Pharmaceuticals Finance Banks Consumer Non Durables Auto Ancillaries Power Industrial Capital Goods Transportation Software Cement Auto Industrial Products Trading Chemicals Gas Pesticides Ferrous Metals Consumer Durables Telecom - Equipment & Accessories Construction Project Services Oil Healthcare Services Petroleum Products Media & Entertainment Hotels Non-Ferrous Metals Construction Textile Products Telecom-Services Cash & Equivalent MOSt Shares Midcap100 Returns^ 10.75% 10.32% 10.07% 8.08% 6.41% 5.60% 5.25% 5.16% 4.77% 2.56% 2.52% 2.33% 2.28% 2.25% 2.03% 1.89% 1.88% 1.81% 1.68% 1.65% 1.53% 1.52% 1.47% 1.26% 1.22% 0.91% 0.72% 0.66% 0.64% 0.51% 0.25% N. A. 13,824 Weightage in Midcap 100^ 2.57% 2.28% 2.11% 1.92% 1.89% 1.86% 1.84% 1.80% 1.79% 1.76% Industry classification as recommended by AMFI ^MOSt Shares Midcap 100 NOTE : Mr. Anubhav Srivastava is also the fund manager for MOSt Shares M50, MOSt Shares NASDAQ 100 and MOSt Gold Shares, the performance of which is mentioned on page no. 8, 10 and 12 respectively and for MOSt Focused Multicap 35 fund for foreign security. 9

10 Motilal Oswal Mutual Fund nasdaq 100 (An open ended Index Exchange Traded Fund) I I About the Scheme Scheme Name Type of Scheme Investment Objective Continuous Offer Redemption proceeds Motilal Oswal MOSt Shares NASDAQ-100 ETF (MOSt Shares NASDAQ 100) An open ended Index Exchange Traded Fund The Scheme seeks investment return that corresponds (before fees and expenses) generally to the performance of the NASDAQ-100 Index, subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved. NASDAQ-100 Index On NSE & BSE: Investors can buy/sell units of the Scheme in round lot of 1 unit and in multiples thereof. Directly with the Mutual Fund: Investors can buy/sell units of the Scheme only in creation unit size i.e. 100,000 units and in multiples thereafter. Normally within 3 Business days from acceptance of redemption request. Scheme Details Date of Allotment 29 March 2011 NAV - Growth Plan ` Quarterly AAUM (June 30th, 2014) `66.98 (` crores) Tracking Error* 0.39% (Annualised) Total Expense Ratio^ 1.00% p.a. Standard Deviation (Annualised) Sharpe Ratio# 1.50 (Annualised) Portfolio Turnover Ratio 0.33 Beta* 1.00 R-Squared* 1.00 *Against the benchmark with NASDAQ 100 Total Return Index ^Year-to-date. # Risk free returns based on 365-days T- bill cut-off of 8.92% as on the last auction. NSE & BSE Symbol N100 ISIN Code INF247L01031 Bloomberg Code MOSTNDX Entry Load NIL Reuters Code N100.NS or N100.BO Exit Load NIL Mr. Anubhav Srivastava Experience He has 18 years of experience in the Financial Services Industry. He has been managing this fund since Jan 20, MOSt Shares NASDAQ 100 Performance Date Since Inception till June 30, 2014 June 30, 2013 to June 30, 2014 June 30, 2012 to June 30, 2013 June 30, 2011 to June 30, 2012 Industry Allocation Scheme MOSt Shares NASDAQ100 Returns^ 27.93% 32.01% 21.38% 40.12% Software & Services Technology Hardware & Equipment Pharmaceuticals, Biotechnology 9.76% Semiconductors & Semiconductor 7.81% Media 7.37% Retailing 7.27% Internet Software & Services 3.58% Health Care Equipment & Services 2.29% Food Products 2.17% Consumer Services 1.83% Food & Staples Retailing 1.49% Biotechnology 1.44% Semiconductors 1.14% Capital Goods 0.81% AutoMobile 0.64% Wireless Telecommunication Services 0.63% Computers & Peripherals 0.53% Consumer Durables & Apparel 0.51% Life Sciences Tools & Services 0.48% Food Beverages & Tobacco 0.44% Hotels Restaurants & Leisure 0.43% Transportation 0.42% Telecommunication Services 0.40% Semiconductors & Semiconductor 0.36% Internet & Catalog Retail 0.29% Materials 0.27% Beverages 0.24% Professional Services 0.23% Commercial & Professional Services 0.23% Health Care Providers & Servic 0.21% Specialty Retail 0.20% Cash & Equivalent 0.42% NASDAQ 100 Index (In INR) 25.65% 20.48% 28.05% 32.08% 21.34% 40.47% Current Value of Standard Investment of Rs. 10,000/- CNX Nifty Returns* 9.07% 30.28% 10.67% -6.53% Top 10 Holdings Sr. No MOSt Shares NASDAQ 100 Index CNX Nifty NASDAQ100 Returns (INR)^ Returns (INR) Returns (INR) Scrip Apple Microsoft Corporation Google -Class C Intel Corporation Google Facebook Amazon.com Gilead Sciences Cisco Systems QUALCOMM 22,306 22,375 NAV per unit : Rs (June 30, 2014); Rs (June 30, 2013); Rs (June 30, 2012); Rs (June 30, 2011); Rs (March 29, 2011) Returns for one year are absolute. Returns for more than one year are compounded annualized; Incase, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of returns. *Also represents Additional ^Past performance may or may not be sustained in the future. N. A. 13,269 Weightage in N100^ 13.26% 8.07% 4.44% 3.83% 3.76% 3.34% 3.32% 3.23% 2.94% 2.88% Industry Classification is as per Global Industry Classification Standard (GICS). ^MOSt Shares NASDAQ 100 NOTE : Mr. Anubhav Srivastava is also the fund manager for MOSt Shares M50, MOSt Shares Midcap 100 and MOSt Gold Shares, the performance of which is mentioned on page no. 8, 9 and 12 respectively and for MOSt Focused Multicap 35 fund for foreign security. 10

11 Motilal Oswal Mutual Fund Mosl 10 Year gilt fund (An open ended Gilt Scheme) About the Scheme Scheme Name Type of Scheme Investment Objective Continuous Offer Load Redemption proceeds Motilal Oswal MOSt 10 Year Gilt Fund (MOSt 10 Year Gilt Fund) An Open Ended Gilt Scheme The primary investment objective of the scheme is to generate credit risk - free return by investing in a portfolio of securities issued by the Central Government & State Government. However there can be no assurance or guarantee that the investment objective of the Scheme would be achieved. CRISIL 10 Year Gilt Index Minimum Application Amount : `10,000 /- and in multiples of `1 /- thereafter. Additional Application Amount : `1000 /- and in multiples of `1/- thereafter. Entry - Nil; Exit % if redeemed within 30 days. Normally within 1 Business day from acceptance of redemption request. Scheme Details Date of Allotment Quarterly AAUM (June 30th, 2014) Dividend History Record Date Dividend Option Dividend per Unit (Rs.) May 17, December 2011 Growth Plan Dividend Plan Direct Dividend Plan `38.50 (` crores) Cum Dividend NAV ` ` NAV Direct Growth Plan ` Total Expense Ratio^ Regular Plan Direct Plan ` % p.a. 0.91% p.a. ^Year-to-date. Ex Dividend NAV* January 8, Past performance may or may not be sustained in the future; Dividend distribution is subject to availability & adequacy of distributable surplus. After the payment of dividend, the per unit NAV falls to the extent of the dividend payout and distribution taxes, if any. Performance of dividend plan/option would be net of applicable statutory levy, if any. * NAV on the 1st transaction day after Record Date, which includes the mark to market impact also. Performance : Date Since Inception till June 30, 2014 June 30, 2013 to June 30, 2014 Scheme MOSt 10 year Gilt Fund Returns (%) ^ 4.10% -3.43% Crisil 10 Year Gilt Index Returns (%) ^ 4.45% -3.45% Current Value of Standard Investment of Rs MOSt 10 year Gilt Fund Returns (INR) ^ Crisil 10 Year Gilt Index Returns (INR) ^ 11,079 11,172 NAV per unit : Rs (June 30, 2014); Rs (June 30, 2013); Rs (December 12, 2011) Returns for one year are absolute. Returns for more than one year are compounded annualized; Incase, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of returns. ^Past performance may or may not be sustained in the future. N.A. Portfolio Security Issuer % of holding 8.83% GOI 2023 Government of India Reverse REPO/Cash/Others Quantitative Indicators Average Maturity Modified Duration YTM 9.02 Years 5.98 Years 8.714% Mr. Abhiroop Mukherjee Experience He has over 6 year experience in the Financial Services Industry. He has been managing this fund since inception. NOTE : Mr. Abhiroop Mukherjee is also fund manager for Motilal Oswal MOSt Ultra Short Term Bond Fund. Past Performance of the said scheme has not been provided as the scheme has not completed 1 year. 11

12 Motilal Oswal Mutual Fund Mosl GOLD SHAREs (An open ended Exchange Traded Fund) About the Scheme Scheme Name Motilal Oswal MOSt Shares Gold ETF Scheme Details Date of Allotment 22 March 2012 Type of Scheme An Open Ended Exchange Traded Fund NAV - Growth Plan ` Investment Objective Continuous Offer Redemption proceeds The Investment objective of the scheme is to provide return by investing in Gold Bullion. The performance of the fund will be benchmarked to the Spot Gold Price. However, the performance of the schame may differ from that of the index due to tracking error. There can be no assurance or gurantee of the investment objective of the scheme would be achived. Spot Domestic Gold Price On NSE & BSE: Investor can buy/sell units in round lot of 1 unit and in multiples thereof. Directly with the Mutual Fund : Investor can buy / sell units of the scheme in creation of Unit Size. Normally within 3 Business days from acceptance of redemption request. Quarterly AAUM (June 30th, 2014) Total Expense Ratio^ Tracking Error NSE & BSE Symbol MGOLD Bloomberg Code MOSTGLD ISIN Code INF247L01072 `54.49 (` crores) 1.50% p.a. 0.28% (Annualised) Entry Load Exit Load ^Year-to-date. NIL NIL Performance : Scheme Current Value of Standard Investment of Rs Date MOSt Gold Shares ETF Returns (%) ^ Spot Domestic Gold Price Returns (%) ^ MOSt Gold Shares ETF Returns (INR)^ Spot Domestic Gold Price Returns (INR) Since Inception till June 30, % 1.21% 9,903 10,278 June 30, 2013 to June 30, 2014 June 30, 2012 to June 30, % % 13.76% % N.A. NAV per unit : Rs (June 30, 2014); Rs (June 30, 2013); Rs (June 30, 2012); Rs (March 22, 2012) Returns for one year are absolute. Returns for more than one year are compounded annualized; Incase, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of returns. ^Past performance may or may not be sustained in the future. Portfolio Security Type Gold Cash & Other Receivables Net Assets % of holding 98.82% 1.18% % Experience Mr. Anubhav Srivastava He has 18 years of experience in the Financial Services Industry. He has been managing this fund since June 26, NOTE : Mr. Anubhav Srivastava is also the fund manager for MOSt Shares M 50, Midcap 100, MOSt Shares and NASDAQ 100 the performance of which is mentioned on page no. 8, 9 and 10 respectively and for MOSt Focused Multicap 35 fund for foreign security. 12

13 Insights MOTILAL OSWAL MOSt FOCUSED MULTICAP 35 FUND (An open ended diversified equity scheme) Ajanta Pharma Ajanta Pharma (APL) is a well known fully integrated pharmaceutical company. Over the years it has created strong product brands in various geographical markets. The Company derives 65% of revenue (FY13) from exports from semi regulated markets mainly: Africa, Asia and Latin America. During FY07-13, APL's export business has grown at 25% CAGR to INR 6 bn in FY13. APL has an in house R&D centre named Advent, which is focused on bringing newer niche drugs into the domestic and international market. It invests 5.0% - 6.5% of Sales in R&D which has helped the company to introduce with 20 newer products in domestic market every year. After establishing itself in ophthalmology, dermatology and cardiac segments, APL is now focusing on a growing specialty therapeutic segments like ENT, gastroenterology and orthopedic which will help the company to hold its growth momentum in the domestic market with a 25% expected CAGR in revenue over FY11-15E. In the last five years business model has transformed from drugs supply to govt. institutions (low margin) to prescription based business (high margin and sustainable). The initiatives for investment in its R&D for establishing brands in domestic market could augur well on sustainability of margins CYTD : FYTD : MTD : Bata India Strong brand plus aggressive store expansion is expected to drive market share for Bata India (BIL). The Company derives ~85% of revenue through retail networks, 14.2% from non-retail channels (dealers/institutional/industrial sales) and balance 0.8% through exports. Over the last six years, retail segment posted 20% CAGR, exports 5.6% and the wholesale business growing at 2.2% over CY Premium products may drive sales per store. To improve margins, BIL phased out INR69/pair rubber Hawaiians' (a low margin) and shifted to Sunshine range (INR ) with better margins. It increased focus on high value products within the leather segment such as Hush Puppies (growing at 40%). Leather contribution is set to increase from 72% of sales in CY12 to 76% going forward, thereby improving margins. Increased contribution may come from women and child segment which can drive the growth. To increase the contribution from women and child footwear segments, BIL increased the display area for both segments across all stores, complimented by launching newer trendy designs under brands like Marie Claire, Hush Puppies, North Star etc. This improved the contribution of high margin women's segment from 25% in CY08 to ~35% in CY12. Gross margin expansion on the cards. Massive restructuring places Bata India on a strong footing. CYTD : FYTD : 9.33 MTD :

14 Berkshire Hathaway Berkshire Hathaway is an American multinational headquartered in Omaha, United States, that oversees and manages a number of subsidiary companies. The company wholly owns GEICO, BNSF, Lubrizol, Dairy Queen, Fruit of the Loom, Helzberg Diamonds, FlightSafety International, and NetJets, owns half of Heinz and an undisclosed percentage of Mars, Incorporated, and has significant minority holdings in American Express, The Coca-Cola Company, Wells Fargo, and IBM. Berkshire has used the "float" provided by Berkshire Hathaway's insurance operations (paid premiums which are not held in reserves for reported claims and may be invested) to finance his investments. The company focuses on buying and holding stocks of companies for very long tenures. Berkshire may reach record-high operating EPS soon, reaching nearly $16bn by CY 2014, with continued growth thereafter. In particular, GEICO, BNSF and the collection of Manufacturing, Service and Retail businesses (roughly 70% of 2013 earnings) should see record-high earnings. We view current valuation of ~1.3x book (with a pledge to be aggressive with buybacks at 1.2x), as attractive for a stable and strong mix of long-term earnings streams. CYTD : 5.87 FYTD : 0.53 MTD : Bosch Ltd BOSCH Ltd., the flagship company of the Bosch group in India, is one of the country's largest manufacturer of diesel fuel injection equipment. It is also a leading global supplier of technology & services and comprises Robert Bosch GmbH and 360 subsidiaries and regional companies in 50 countries with 77,000 patents and utility models to its name. Using parentage, Bosch Limited has garnered 81% market share in diesel systems and currently enjoys around 65% market share in spark. The strong performance will be on the back of robust margin trajectory due to higher exports, localization, and support from replacement and non automotive. Bosch trades at PER of 38X FY15E, a year in which the auto (especially CV) cycle is expected to turn up again leading to likely strong EPS growth in the next two years. CYTD : FYTD : MTD :

15 Colgate Palmolive Colgate-Palmolive (India) Limited (Colgate) is amongst India's one of the leading provider of scientifically proven oral care products with multiple benefits at various price points. The range includes toothpastes, toothpowder, toothbrushes and mouthwashes under the Colgate brand, as well as a specialized range of dental therapies under the banner of Colgate Oral Pharmaceuticals. In domestic market it enjoys 50% of market share. It is spread across 4.5 million retails outlets out of which 1.5 million are direct outlets. In November 2007, it acquired a 75% equity interest in Advanced Oral Care Products, Professional Oral Care Products and SS Oral Hygiene Products, the company is the fastest growing and one of the oldest companies catering to the personal care products. The company is regularly coming up with new products and has been a consistent financial performer. Colgate is setting up a state of the art toothpaste manufacturing facility at Sanand in Gujarat. The new factory will be the best in class manufacturing facility which is scheduled to commence commercial production in the current year. Colgate is at an advanced stage of obtaining various permissions for a new toothbrush manufacturing facility at Sricity in Chittoor District in Andhra Pradesh. This new toothbrush manufacturing facility is expected to commence commercial production in the year CYTD : FYTD : MTD : 3.82 Eicher Motors Eicher Motors limited (EML) is promoted by the Delhi-based Vikram Lal Group, is present in commercial vehicles, two wheelers and related components. It's a leader in Cruise bikes in India and No.2 player in Medium Commercial Vehicles. Royal Enfield Touted as the Indian Harley Davidson, It is the biggest beneficiary of this emerging leisure biking trend in India. The management has increased its production target to 280,000 units in CY2014 (from 250,000 units) and is expected that demand can reach 500,000 units in 3-4 years. Eicher Motors will invest Rs. 6 bn over the next two years in the Royal Enfield business to expand capacity in the Oragdum plant. Eicher Motors reported better-than expected results at the operating level, driven by strong performance by Royal Enfield. Consolidated net sales rose by 2% y-o-y and EBITDA grew by 41% y-o-y in 4QCY13. Royal Enfield reported 208% y-o-y EBITDA growth while the VECV business reported a 2% y-o-y EBITDA decline. The Royal Enfield business reported net profit of 118% y-o-y in 4QCY13, driven by 78% y-o-y growth in net sales and 850 bps y-o-y growth in EBITDA margin. Volumes increased by 72% y-o-y and demand continued to exceed expectations. CYTD : FYTD : MTD :

16 Gujarat Pipavav Gujarat Pipavav (GPPL) provides an attractive proxy to invest in a strategic asset play/ with strong management and reasonable valuations. The western port belt spread across Mumbai / Gujarat accounts for ~65-70% of EXIM container traffic in India. GPPL is one of the big beneficiaries from some of the ongoing mega infrastructure initiatives such as Dedicated Freight Corridor (DFC)/ Delhi Mumbai Industrial Corridor (DMIC). One of the key strengths of GPPL is the strong backing from its parent and its ability to leverage on the established relationships of its parent APM Muller with the top 8-10 global liners. Pipavav port has received the environment ministry's nod for its port expansion plans and has recently finalized its capex plans, which provides increased clarity on medium term growth. GPPL, due to its advanced railway infrastructure is able to offer fast evacuation to its customers which lowers cost and increases turnaround thereby acting as a key differentiator. GPPL stands to enjoy significant operating leverage as its current utilization is ~72% CYTD : FYTD : MTD : HDFC Bank HDFC Bank is the second largest private sector bank, with a balance sheet size of Rs trillion and is rated as one of the best banks in India; it has a network of over 3,100 branches. It provides corporate banking and custodial services and is active in the treasury and capital markets. The Loan Book is consistently growing at the rate of over 20 percent for last several quarters. Despite being an aggressive lender, the net Non Performing Assets (NPAs) of 0.2 percent in Financial Year 2013 is one of the lowest in the industry standard of ~4.2 percent during FY This indicates superior risk management skills. It is one of the better placed banks in current environment with CASA (Current Account Savings Account) ratio of 44.7 percent, growth outlook of 1.3x of industry growth, improving operating efficiency, strong expansion in branch network and best in class asset quality The biggest risk to earnings for private banks is the implementation of dynamic provisioning by RBI. However, HDFC Bank is best placed due to floating provisions created during the last three years. CYTD : FYTD : MTD :

17 HDFC HDFC is one of the market leader in the housing mortgage segment. It has evolved as a financial conglomerate with interests in the banking, insurance and mutual funds business by having stakes in its group companies HDFC's performance in last three years (FY , and ) has been healthy with average growth in net loans of 20.3 percent, total assets of 19 percent and PAT (Profit After Tax) of 20 percent. It enjoys strong brand equity and has a strong customer base of 4.4 million. Working Indian population is on the rise. This will create more demand for HDFC's business as the housing affordability will be directly impacted. Mortgage penetration as a percentage of GDP in India stands at only 8 percent and is among the lowest even within many developing nations, implying wide untapped opportunity in India. HDFC is expected to maintain its consistent growth trajectory as observed over the past 3 years. CYTD : FYTD : MTD : 7.64 Hero MotoCorp Hero MotoCorp Limited (HMCL), formerly Hero Honda Motors Limited is engaged in the manufacture of motorcycles and its parts and ancillary services. HMCL has 17 different products across 100 cubic centimeter (cc), 125cc, 150cc, 225cc and scooter category. Two wheeler sector a key beneficiary of discretionary spend increases, is likely to display healthy growth. With sector controlled by just three major players all incremental growth set to be shared by incumbents. HMCL's dominant market share puts it in a strong position. It enjoys a strong distribution network with over 3,500 outlets and equally strong brand equity. Company has also started exporting to certain markets Central America and Africa, along with starting its first overseas assembly line in Kenya. During the festive month of October 2013, HMCL has reported sales of 625,420 units which is highest ever during a month achieved in the 2 Wheeler Industry in India. HMCL is expected to improve its domestic growth and market share led by new product launches and dominance in rural areas which will likely benefit from the good monsoon. CYTD : FYTD : MTD :

18 IPCA IPCA is a structural growth story, with all business segments contributing to growth. It is expected to grow at 25% CAGR in international formulation revenues over FY14-16, led by branded formulations and the US business. For domestic formulations, growth is likely to recover to 16%, while the institutional business is likely to record 15% sales CAGR over FY IPCA believes its India branded business can grow at 15% over the next few years. IPCA has not been able to generate strong free cash flows over the last few years despite its profits growing 3x over FY It has a focus on backward integration/strengthening R&D capabilities which is likely to continue. IPCA believes there is huge scope to reduce costs in APIs through technological enhancements, though there is limited scope to reduce costs in formulations. Though the contribution of formulations would increase, IPCA's underlying strength of backward integration will only be enhanced in this process CYTD : FYTD : MTD : State Bank of India SBI is India's one of the largest banking franchisee with 25% market share. High share of low-cost deposits due to large network of over 17,000 branches is its key strength. Its other big strength is its balance sheet size of Rs14trn, which is multiple times of the next largest bank in India. Current penetration levels low - only 2% of people have credit cards and insurance sales are just 4% of GDP. With wide and credible distribution, banks are best positioned to take advantage of growth in financial services. SBI has accumulated a solid rural-urban and rural reach which accounts for 66% of its branches. A consistent savings rate at 34-37% generates a very strong deposit franchise - Deposits set to grow 20% p.a. and credit by 18% p.a. SBI is trading at PER of 10.5X FY15E for estimated growth of 18%, which is very attractive. CYTD : FYTD : MTD : Sundaram Finance Sundaram Finance is a leading asset finance company with more than five decades of experience in Commercial Vehicles and Private Vehicle's car financing. It also has interests in housing finance, asset management, general insurance, IT-ITes and financial product distribution. Sundaram Finance is attractively placed as the market has yet to price in the value of two of its ventures: General Insurance, which has turned around, and Housing Finance, where performance has remained strong. Its housing finance business has been consistently growing at ~30% and over 30% ROE, making it amongst the very few businesses in the housing finance space that have been generating more than 2.5 percent ROA. Its general Insurance arm, Royal Sundaram has turnaround from marginal profit in FY12 to Rs 547m in FY13. If this trend continues, it will be a strong positive for Sundaram Finance. Value unlocking potential from its housing finance vertical. CYTD : FYTD : MTD :

19 Supreme Industries Repco Home Finance's (RHF) core strengths are its expertise in assessing a risky customer class, maintaining consistent and institutionalized credit delivery process, and ability to operate with a lean cost structure. Supreme Industries is India's leading manufacturer of plastic products like i) Pipes for building and irrigation ii) Packaging materials iii) Auto parts iv) Furniture, and v) Material handling equipment. The company's extensive product range and its distribution are its key strengths. Value added products having higher profitability contribute over 30% of revenue and are keys to its high ROE of over 35%. The company is expected it to be relatively unaffected by macro slowdown due to rising demand for its plastic products driven by substitution of steel-based materials enabled by new technologies. The company is trading at a P/E of 18x FY15E EPS. It is expected that the company will keep up with its trend growth rate of 20% on account of introduction of new products, ramping up of capacities and sustained demand for plastic products. CYTD : FYTD : MTD : Tata Consultancy Services Tata Consultancy Services Limited (TCS) was set up in 1968, since then it pioneered IT services exports and is India's largest exporter. It provides a comprehensive range of IT services to industries such as banking and financial services, insurance, manufacturing, telecommunications, retail, and transportation. TCS is well placed to gain market share and continues to enjoy strategic vendor status with most of its top customers. Over the last five years, TCS has almost doubled its revenue contribution from the top 10 as well as non top 10 clients. Its aggressive deal-making capability helps it in achieving industry- leading growth and its focus on high employee utilization and on improving operational efficiencies helps it in being amongst the highly profitable Indian IT companies. With the recovery of the US economy, client spending on discretionary IT services is expected to increase. This could lead to both volume and margin growth for the company. The INR depreciation would also work positively in favour TCS. TCS is a key beneficiary of increased global sourcing. It stands out for all round growth across verticals, geographies and service lines. It is also increasingly winning larger and more transformational deals. TCS' strong leadership and tight execution are its key strengths. CYTD : FYTD : MTD :

20 Tech Mahindra Tech Mahindra (Tech M) is a $2.7 billion company (Post merger with Satyam Computers Services) with over 80,000 professionals across 49 countries, helping over 560 customers including Fortune 500 companies. Its consulting; enterprise and telecom solutions, platforms and re-usable assets connect across a number of different technologies to derive tangible business value. Merger of Tech M with Mahindra Satyam (Satyam) will derive synergies from scale as this will help the company to qualify for larger deals, cross sell services and cut cost. Integration with Satyam Computers Services and reduced dependency on its top client, British Telecom, de-risks the revenue profile of the company and also balances the geography mix. With the merger, cross functional bidding is now a reality and with a topline of USD $2.7 bn, they can attempt larger deal bids as well. With relevance of mobility and data analytics cutting across sectors, Tech M's expertise in telecom can now be leveraged within Satyam's clientele as well. Sales and Marketing has been a weak area for Tech M due to captive business legacy of BT. This is now being strengthened by Satyam's entrance. While one company was debt laden, the other was cash rich. However, now with consolidation and a year of cash flows, they will not only be cash positive on a consolidated basis but also cut interest costs significantly. CYTD : FYTD : MTD : United Spirits Limited United Spirits (UNSP) is the largest spirits company in India, both by volume and value. It has a strong portfolio of brands across all price points and across the Whiskey, Brandy and Rum segments, with McDowell's No 1, Royal Challenge, White Mischief and Romanov being among the leading brands in their respective segments in India. Diageo is now the majority owner of UNSP with ~55% controlling stake and its team now runs the business. Diageo globally makes 31% EBIT margins v/s single digit EBIT margins of United spirits. Our view over the next five years is that the company can deliver average top-line growth of 16-18%. Volume growth should start to pick up as GDP growth improves and price/mix contribution should help drive 16-18% top-line growth annually for the company over the next five years. However, the big change in our view will be improvement in EBIT margins to closer to Diageo global margins, which may lead to super normal growth in profits and justify current high valuation based FY15 earnings. CYTD : FYTD : MTD : Data Source for Stock Returns: Source for write ups : MOAMC Internal Research CYTD: Calendar Year to Date (1st Jan 2014 to 31st July 2014) FYTD: Financial Year to Date (1st Apr 2014 to 31st July 2014) MTD: Month to Date (1st July 2014 to 31st July 2014) Disclaimer: The statement contained herein may include statement of future expectations and other forward looking statements that are based on external views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or event to differ materially from those expressed or implied in such statement. The above information/news/data are already available in public. Motilal Oswal Asset Management Company Ltd. (MOAMC) does not take the responsibility for the authenticity of the above information/news/data. The above mentioned Stocks are part of Motilal Oswal MOSt Focused Multicap 35 Fund. The Stocks mentioned above are only for the purpose of information and should not be construed as recommendation from MOAMC. The retains the flexibility to increase or decrease the exposure of a stock or to exit a stock. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. 20

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