Quant Mid Cap Fund vs Motilal Oswal Midcap Fund: Which Midcap Fund is Best for Portfolio in 2024?

Summary

This video offers a comprehensive analysis of two top mid-cap funds in India: Quantum Mid-Cap Fund and Motilal Oswal Mid-Cap Fund. It compares their long-term investment performance, risk-adjusted returns, portfolio overlap, sector allocation, and management stability. The analysis suggests that while Motilal Oswal Mid-Cap Fund has shown better returns over the past three years, Quantum Mid-Cap Fund offers better risk-adjusted returns in the long term. The video also provides investment strategies for mid-cap funds, advising against lump sum investments due to high valuations and recommending systematic investment plans.

Takeaways

• 📈 The video compares two top mid-cap funds: Quantum Mid Cap Fund and Motilal Oswal Mid Cap Fund.
• 🔍 The analysis covers a detailed examination of both funds' performance over various time frames.
• 🏆 Motilal Oswal Mid Cap Fund outperforms Quantum Mid Cap Fund in calendar year returns over the past 11 years.
• 📊 In terms of quarterly returns, both funds have shown similar performance with slight edges to each at different times.
• 💹 Motilal Oswal Mid Cap Fund has demonstrated better wealth creation for investors over the long term.
• 📉 The rolling returns analysis shows that Motilal Oswal Mid Cap Fund has performed better in 1-year rolling returns, while Quantum Mid Cap Fund has shown better performance in 3-year and 5-year rolling returns.
• 📊 The compound annual growth rate (CAGR) analysis reveals that Quantum Mid Cap Fund has delivered better compound returns over the past 9 years.
• 💰 When comparing the returns of ₹1000 invested 5 and 10 years ago, both funds show significant growth, with Quantum Mid Cap Fund providing slightly higher returns in the 5-year comparison.
• 📈 The portfolio analysis shows that the two funds have very little overlap in their portfolio holdings.
• 🔄 Quantum Mid Cap Fund has a higher portfolio turnover ratio, indicating more frequent changes to the portfolio compared to Motilal Oswal Mid Cap Fund.
• 📉 The risk analysis shows that Motilal Oswal Mid Cap Fund has provided better results in terms of maximum drawdown over the past 3 years, but Quantum Mid Cap Fund has shown better performance over 5 years and 10 years.

Q & A

Which two mid-cap funds are discussed in the script?

The two mid-cap funds discussed are Quantum Mid Cap Fund and Motilal Oswal Mid Cap Fund.

What is the main focus of the video script?

The main focus of the video script is to analyze and compare the performance of Quantum Mid Cap Fund and Motilal Oswal Mid Cap Fund over various parameters to determine which is a better investment option for long-term.

What is the conclusion regarding the total returns over the past 11 years?

Over the past 11 years, Motilal Oswal Mid Cap Fund has shown better performance compared to Quantum Mid Cap Fund based on total returns.

How does the performance differ in terms of calendar year returns?

In calendar year returns, Motilal Oswal Mid Cap Fund outperformed Quantum Mid Cap Fund in eight out of eleven years, while Quantum Mid Cap Fund outperformed in three out of eleven years.

What is the portfolio turnover ratio for Quantum Mid Cap Fund and Motilal Oswal Mid Cap Fund?

Quantum Mid Cap Fund has a portfolio turnover ratio of 342%, indicating that it changes its portfolio more than three times in a year. Motilal Oswal Mid Cap Fund has a portfolio turnover ratio of almost half, meaning it changes its portfolio less frequently.

Which fund has a higher allocation to equity assets?

Quantum Mid Cap Fund has a higher allocation to equity assets compared to Motilal Oswal Mid Cap Fund.

How do the sector allocations of both funds compare?

Quantum Mid Cap Fund has higher allocations in sectors like industrials, materials, healthcare, energy, and utilities, while Motilal Oswal Mid Cap Fund has higher allocations in technology, consumer discretionary, financial, and real estate sectors.

What is the observation regarding the portfolio overlap between the two funds?

The portfolio overlap between the two funds is very low, with single-digit percentages, indicating that the common stocks between the two funds are minimal.

Which fund is considered more aggressive based on the analysis?

Motilal Oswal Mid Cap Fund is considered more aggressive compared to Quantum Mid Cap Fund based on the analysis.

What is the advice for investment strategy in the current market situation for mid-cap funds?

In the current market situation, it is advised to invest in SIP mode and avoid lump sum investments in mid-cap funds due to high valuations. It is also recommended to increase the SIP amount periodically.

What is the final recommendation for investors based on the analysis?

For aggressive investors seeking higher returns, Motilal Oswal Mid Cap Fund is recommended, while for those seeking better risk-adjusted returns, Quantum Mid Cap Fund is a better investment option.