Last 12-18 months have been challenging for our clients: Aashish Somaiyaa, Motilal Oswal AMC
With the PMS, we are trying to beat the market and create wealth over any five-year timeframe.
How has it been for the PMS business?
Last one and a half year has been a bit challenging for the PMS because by nature we are stock pickers and obviously in the PMS we try to target the small and midcap stocks picking from more than 4,000 listed companies. But 57% of the equity mutual funds’ money is lying in top 50 stocks and we have always believed that if you buy the market, you cannot beat the market. With the PMS, we are trying to beat the market and create wealth over any five-year timeframe.
In the quest for creating wealth, we invest significantly into midcaps and from that perspective, last one to one-and-a-half-year has been challenging for our clients. What I have seen is that if you own midcaps in a year like 2018-2019, then beating the index does not help because if Rs 100 becomes Rs 90, then how does it help to beat the index? But yes we will stay the course and I am sure we will create wealth But every five years, there are a couple of years which are a bad patch.
Motilal Oswal’s DNA is stock picking.. How are things on ground and within all that gloom doom, are there certain business owners who are still trying to outperform?
That is pretty much evident in the stock market performance as well as in the corporate performance. I strongly believe that any gloom, doom, slowdown are all generalisations. The fact is at any point in time, certain segments are doing well. For example, our largest weightages are typically in financial services and we know for a fact that areas like insurance or asset managers or private sector banks have done well.
Within consumer sector, certain white goods have done well. Certain domestic pharma companies have also delivered for us.