Motilal launches Next trillion dollar portfolio

Plans to construct high growth small & mid cap portfolio for its wealth management customers to capture the next growth phase in the Indian economy

October 11, 2007: Motilal Oswal Securities (MOSL) today launched the "Next trillion dollar opportunity portfolio" for its wealth management customers. The fund will be open for investment for a period of 45 days starting October 11, and it will have a minimum investment size of Rs 5 lakh.

Funds collected will be invested in equity of high growth sectors, which will power the rise of India's GDP from approx one trillion dollars at present to two trillion dollars in an estimated six years time.

India's GDP touched a historic high of US$ one trillion in the current financial year. While it has taken over 30 years to touch this historic landmark from USD 100 Billion, it is estimated by the MOSL research that India will double it's GDP in less than six years time. In order to capture the investment opportunities during this period, the company has launched this portfolio.

Next trillion dollar opportunity portfolio will invest in stocks likely to benefit from next trillion dollar GDP growth. The government of India is expected spend over US$ 492 billion in the next five years which will fuel the GDP levels to a new high. Huge investments have been lined up in infrastructure and the sectors to benefit are power, cement, capital goods, etc. Strong fiscal situation and higher per capita income will result in huge growth opportunities across sectors like Infrastructure, retail business, utility services, etc . Another sector to benefit from higher GDP is banking and financial services.

The investment approach of this portfolio will be to cherry pick small and mid cap growth stories in these sectors and turn them into a high performing portfolio. It aims to invest in stocks that have the potential to deliver above average returns over a 2-3 year horizon. The portfolio will adopt a bottom up approach in which stock selection will be the key in its investment.

Raamdeo Agrawal, Joint Managing Director, Motilal Oswal Securities ltd said, "The next 5-6 years are going to witness spurt of economic activities on one hand and huge re-rating of India as an investment destination, on the other. It will bring to light, once in a lifetime investment opportunities, especially in the small and mid-caps, which, due to India 's growth will undergo transformation and emerge as major players in their respective sectors. Our strong research will aim to get the best of these investment opportunities."

The portfolio would be benchmarked against the CNX mid-cap index. The company plans to follow a buy and hold strategy. The portfolio will be open-ended and its investment details would be disclosed on a quarterly basis.

About Motilal Oswal Financial Services Limited: Motilal Oswal Financial Services Ltd. (MOFSL) is a well-diversified, financial services company focused on wealth creation for all its customers, such as institutional, corporate, HNI and retail. Its services and product offerings include wealth management, equity broking, commodity broking, distribution of third party products, investment banking and venture capital management. The company distributes these products through 1,200 business locations spread across 377 cities and the online channel to over 2,00,000 registered customers. MOFSL has strong research capabilities, which enables them to identify market trends and stocks with high growth potential, facilitating clients to take well- informed and timely decisions. MOFSL has been ranked the Best Local Brokerage 2005 as well as the Most Independent Research - Local Brokerage 2006 in the Asia Money Brokerage Polls for India . It has been offering portfolio management service to its customers since 2003 and the total assets under management at present are over Rs 700 crores.