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Motilal Oswal – Vision 2030 Fund Review – Should you Invest in this AIF?

by Holistic Leave a Comment | Filed Under: Insurance

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Equity as an asset class is an inevitable portion of everyone’s portfolio.

In recent times, investing in equity is not just limited to investing in listed stocks & equity mutual fund schemes.

The scope for equity investing has widened. One such option is Alternate Investment Funds (AIF). In the earlier article, we reviewed “AIF – an open-ended category III AIF – Motilal Oswal – Next Trillion Dollar Opportunities Portfolio.” 

Refer to the above-mentioned article to have an overview of AIF & features of Category III AIF.

Motilal Oswal – Vision 2030 fund comes under the category III AIF. 

Let us analyse the features, investment strategy, and fee structure of the Motilal Oswal – Vison 2030 fund to determine if it is a worthy investment.

Table of Contents:

1.) What is Motilal Oswal – Vision 2030 Fund?

2.) Features of the Motilal Oswal – Vision 2030 Fund

3.) The Investment strategy of the Motilal Oswal – Vision 2030 Fund

4.) Fee Structure of the Motilal Oswal – Vision 2030 fund

5.) Taxation of the Motilal Oswal – Vision 2030 Fund

6.) The Triple filter Test for the Motilal Oswal – Vision 2030 fund

  • Filter 1: Is the ‘Motilal Oswal – Vision 2030 Fund’ Well Regulated?
  • Filter 2: Does the ‘Motilal Oswal – Vision 2030 fund’ have a Good Track Record?
  • Filter 3: Is the ‘Motilal Oswal – Vision 2030 Fund’ simple and transparent?

7.) Final Verdict

What is Motilal Oswal – Vision 2030 Fund?

Motilal Oswal – Vision 2030 fund is a close-ended category III AIF. The Next Trillion Dollar opportunity Portfolio also comes under the AIF category III. But the latter is an open-ended Scheme. 

The open-ended scheme has no limit on the number of units/ shares. Whereas in a close-ended scheme only a set of shares /Units are issued. 

A closed-end fund is launched through an initial public offering (IPO) in order to raise money for investment. After that period passes, investors can’t subscribe to the same.

Features of the Motilal Oswal – Vision 2030 Fund:

Motilal Oswal Private Equity (MOPE) is looking to raise private equity funds from domestic and global investors. 

Let us take a look at its basic features below to better understand the working of this product.

Name of the Scheme Motilal Oswal Vision 2030
Type Category III, Close-ended Scheme
Tenure 6 years from the final closing 
with 2 years extension subject to approval
No. of Stocks Up to 30 stocks Inclusive of Unlisted
Market Cap Flexi – Invest across market cap
Bench Mark  Nifty 500
Initial drawdown 30% of capital commitment &
balance at the discretion of the Investment manager
Lock in 24 months from the final closing
Exit Load >2 & <3 years – 3%
>3 & <4 years – 2%
>4 & <6 years – 1%
>6 years – NIL

The Investment strategy of the Motilal Oswal – Vision 2030 Fund:

  • It invests in companies with strong QGLP – Quality, Growth, Longevity & Price.
  • The investor has the flexibility to invest ~20% in other bottom-up stock opportunities
  • It invests in the early-stage companies, pre–IPOs, at the time of DRHP filing; near IPO through anchor allocation.

Fee Structure of the Motilal Oswal – Vision 2030 fund:

Based on the investment amount & investment mode, which could be either Lump sum or SIP, the fee structure of Motilal Oswal – Vision 2030 fund varies.  

The following table depicts the fee structure for various categories of investors.

Lump sum class SIP Class Min Capital Commitment (Rs Cr.) Management Fees
B1 B5 2<5 2.50%
B2 B6 5<10 1.75%
B3 B7 10<25 1.50%
B4 B8 >=25 1.25%

A point to be noted here is that B4 and B8 are eligible for Co-investment in Unlisted Equity.

Apart from the fixed management fee, there is also an exit load for early redemption. Funds are locked for a minimum of 2 years.

  • Two to Three years – 3%
  • Three to four years – 2%
  • Four to six years – 1%. 

There is no exit load after 6 years.

Taxation of the Motilal Oswal – Vision 2030 Fund:

Category III of AIF is taxable at the fund level. This has no pass-through status. 

The highest rate of tax (as per the current tax slab) is charged on the profit made by this fund. 

The tax is discharged by the fund on behalf of the investors. So, investors do not have to pay additional taxes separately. 

Tax on both realized and unrealized gains is factored in the NAV on an ongoing basis. Thus, it is a post-tax post-management fee NAV.

The rate at which a Cat III fund pays tax on each of these types of income is explained in the table below: (As per Budget of the Financial Year 2021-22)

Nature of Income earned by the Fund Period Maximum Marginal Rate (MMR)
Short Term Capital gains Up to 12 months 17.94%
Long Term Capital gains > 12 months 11.96%
Dividend Income – 35.88%
Unlisted – Long Term Capital gains > 24 months 28.50%
Unlisted – Short Term Capital gains Up to 24 months 42.74%
Unlisted becoming listed As per listed Criteria same as a listed security

The Triple filter Test for the Motilal Oswal – Vision 2030 fund:

Be it any investment, it is important to test whether this investment is worthy of our money or not.

You can test the quality of this product by putting them through 3 tests or filters.

As Motilal Oswal – Vision 2030 fund is a close-ended fund we have limited sources of information. 

Still, with the information available to us, let us analyse the fund under 3 filters or 3 simple questions regarding its;

  • Regulation
  • Track record
  • Transparency

If Motilal Oswal – Vision 2030 fund passes through this test, then you can add this fund to your portfolio.

So, let us begin.

Filter 1: Is the ‘Motilal Oswal – Vision 2030 Fund’ Well Regulated?

Regulation of an investment product is an obvious factor, which makes the investor, trust their money with the product to invest in.

But it is also one of the most overlooked ones.

Generally, the Securities Exchange Board of India (SEBI) regulates all AIFs. AIFs are defined in the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. 

The AIF Regulations regulate the registration, operation, and winding up of the AIFs. The AIF must comply with the reporting requirements as stated by the SEBI from time to time. 

The AIF must intimate any material changes to SEBI within a reasonable time.

Even though it is registered with SEBI, it is still not strictly regulated by the stringent rules of SEBI as it is with Equity Mutual Funds.

If you are thinking about why stringent regulations like Equity Mutual Funds should matter?

It matters because Motilal Oswal – Vision 2030 fund is a close-ended scheme. So, any dispute in the future or change in the regulation of the AIF category III or any other norms changed by SEBI will have an adverse effect. In such scenarios, there is no easy liquidity option.

Filter 2: Does the ‘Motilal Oswal – Vision 2030 fund’ have a Good Track Record?

Only after the fund is fully subscribed, the fund starts its operation. 

This is similar to New Fund Offer (NFO) in a mutual fund scheme. 

There is no past performance for comparison. 

But earlier Motilal Oswal raised private equity in a close-ended option. 

Let us look at the performance of such funds, to estimate the potential return from this investment.

Motilal Oswal Private Equity (MOPE) – Performance Track Record:

Particulars 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 26.80% -18.10% 45.60%

The earlier funds have a wide range of returns ranging from 18% to 45%. 

This clearly shows that there is no consistency in the performance of similar nature of funds. 

Comparably Equity Mutual Funds have a long past track record of it outperforming the market by delivering consistently better returns at regular intervals in the long term.

Filter 3: Is the ‘Motilal Oswal – Vision 2030 Fund’ simple and transparent?

Though SEBI has regulated the AIFs in disclosing materialistic information to investors, these metrics are sometimes full of jargon. 

This makes it a complex process to understand the working of the fund for the investors. 

There is no consolidated data available for investors to better understand how the fund actually works. 

Large institutional investors have a team of qualified managers to analyse the performance every now & then. 

This can be considered a major drawback for retail investors. This lack of transparency might suit only sophisticated investors with an extremely high-risk tolerance.

Whereas Equity Mutual Funds have complete transparency about the direct working of its fund which keeps the investor in the loop making it a safe investment compared to AIF investments.

Final Verdict:

Investing in Motilal Oswal – Vision 2030 fund is similar to investing in the Initial public offering or New Fund Offer. 

The investors have no clue about anything. 

They have to wait & watch whether it is an unstable stake of cards or actually a trump card.

From our observations from analysing this fund in detail, we can point out that;

Motilal Oswal – Vision 2030 fund has a

  • Quality, Growth, Longevity & Price – QGLP investment strategy.
  • Fixed management fee & Exit load.
  • No past performance for comparison.
  • Limited regulation by SEBI.
  • Inconsistent track record of similar funds.
  • Limited source of metrics for analysis.

So as per our assessment, ‘Motilal Oswal – Vision 2030 Fund has not passed the fundamental triple filter test.

The bottom line is all investment has risk; you cannot eliminate risk.  

The correlation between the risk & return matters the most. 

Generally, the higher the potential return of an investment, the higher the risk. 

But there is no guarantee in an AIF like Motilal Oswal – Vision 2030 Fund that you will get a higher return for the enormous amount of risk underlying in these types of investments.

If you have any comments or questions, write them in the comment box below.

Or are you interested in creating a Comprehensive Financial Plan for your financial goals?

Skip the queue by registering for your 30 Minute FREE Financial Plan Consultation. Click the ‘‘BOOK YOUR SLOT NOW!’’ button below.

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Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Google Reviews

Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

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