MOVI

Products Plans MOVI

Motilal Oswal Value Index (MOVI) is a Systematic Transfer Plan from Motilal Oswal Ultra Short Term Fund to Motilal Oswal Focused 25 Fund, Motilal Oswal Midcap 30 Fund and Motilal Oswal Flexi cap Fund that enables allocation between debt and equity asset classes based on the Motilal Oswal Value Index (MOVI) levels. It allows Unit holders holding units in non-demat form to take advantage of fluctuations in equity market valuations and not just market levels.

A low MOVI level indicates that the market valuation appears to be cheap and one may allocate a higher percentage of their investments to Equity as an asset class. A high MOVI level indicates that the market valuation appears to be expensive and that one may reduce their equity allocation.

Return / Time Period Matrix		MOVI Value Range (%)
Return / Time Period Matrix		<70	70<80	80<90	90<100	100<110	110<120	120<130	130<

	6M	45.0	13.9	9.2	10.6	2.8	2.3	8.4	-23.3
	12M	56.3	34.6	18.6	24.2	10.0	7.4	1.7	-43.7
	24M	39.3	32.7	25.4	19.2	11.7	0.3	-5.0	-1.8
Source: IISL & Internal Analysis

Index Name	30-Jan-2025	5 years Peak		5 years Trough		15 years Peak		15 years Trough
		Date	Value	Date	Value	Date	Value	Date	Value
Nifty 50	23249.5	26-Sep-24	26216.05	23-Mar-20	7610.25	26-Sep-24	26216.05	20-Dec-11	4544.2
MOVI SPOT	98.27	16-Feb-21	137.06	23-Mar-20	70.77	16-Feb-21	137.06	23-Mar-20	70.77
30 DMA MOVI	100.48	17-Mar-21	135.36	30-Apr-20	83.44	17-Mar-21	135.36	30-Apr-20	83.44

30 DMA MOVI Range	Equity Allocation	Net Equity	Equity Arbitrage	Debt Allocation
0 70	100%	100%	0%	0%
70 80	90%	85% - 95%	0%	Upto 10 %
80 90	80%	75% - 85%	0%	Upto 20 %
90 100	70%	60% - 75%	0%	Upto 30 %
100 110	55%	50% - 60%	5% - 35%	Upto 35 %
110 120	40%	40% - 50%	20% - 35%	Upto 35 %
120 130	25%	30% - 40%	25% - 35%	Upto 35 %
130 300	0%	30% - 40%	25% - 35%	Upto 35 %

30 DMA MOVI Range	Equity	Debt	Minimum International Equity Index/ETFs	Minimum Gold ETFs
Less than 70	25.0% - 27.5%	55.0% - 52.5%	10%	10%
70 80	22.5% - 25.0%	57.5% - 55.0%	10%	10 %
80 90	20.0% - 22.5%	60.0% - 57.5%	10%	10 %
90 100	17.5% - 20.0%	62.5% - 60.0%	10%	10%
100 110	15.0% - 17.50%	65.0% - 62.5	10%	10%
110 120	12.5% - 15.0%	67.5% - 65.0%	10%	10%
120 130	10.0% - 12.5%	70.0% - 67.5%	10%	10%
Greater than 130	7.5% - 10.0%	72.5% - 70%	10%	10%

FAQs on MOVI

What is MOVI?

Motilal Oswal Value Index (MOVI) helps gauge equity market. The Index is calculated taking into account Price to Earnings, Price to Book and Dividend Yield of the Nifty 50 Index.

How is MOVI different from other valuation metrics such as P/E Ratio?

MOVI is calculated by not only looking at P/E in isolation, but taking into account Price/Book Value and Dividend Yield as well. The NIFTY MOVI is calculated and maintained by NSE Indices Ltd (IISL).

How is MOVI different from market indices such as Nifty 50 Index and BSE Sensex Index?

Most market indices such as Nifty 50 Index, BSE Sensex Index are price indices that provide a measurement of the market level. As time elapses, fundamentals of the markets change. Therefore, even when markets may be at a certain measured level, they may have become cheap or expensive.

NIFTY MOVI looks at the market levels in conjunction with the fundamentals of the markets and comes up with normalized (90 day average of MOVI index) levels of the market. This helps investors gauge the investment attractiveness of the markets. In essence, MOVI helps investors in understanding if the markets are cheap or expensive.

What would an investment return if one were to make investments based on MOVI?

Historical analysis from 1st January, 1999 shows that if an investor in equities when NIFTY MOVI levels are low, his or her investments is most likely to post good returns. Please refer to the table below.

Let’s consider two scenarios

Scenario 1 – Let’s assume the MOVI value is at 75 which means it falls in the range of 70 < 80. This should have encouraged you to increase your equity allocation as it would have returned 13.9%, 34.6% and 32.7% over the following 6, 12 and 24 months.

Scenario 2 - Let’s suppose the MOVI value is at 140.This should have encouraged you to decrease your equity allocation as your investments would have posted negative returns over the following 6, 12 and 24 months.

Historical Movement of MOVI vis-à-vis Nifty:

The ‘Indicative Buy’ and ‘Indicative Sell’ Zones defined above give an indication of increasing/reducing exposure to Equities.

For Example – In April 2003, when NIFTY MOVI was around the 67 levels and NIFTY 50 Index was at 984, if one had invested entirely in equity using NIFTY MOVI as an indicator, the investment a year later would have returned ~85%.

Similarly, if one were to look at December 2007, when NIFTY MOVI breached the 130 levels and Nifty was close to the 5,800 mark, if one had exited their equity investment using NIFTY MOVI again as an indicator, their investment would have been insulated from a more than 50% fall.

Source: NSE Indices Ltd (IISL), MOAMC Internal Analysis. Data as on 31st December 2014 Inception date of MOVI is 1st January, 1999. Allocation matrix is based on the 90 Day Moving Average of NIFTY MOVI. Past Performance may or may not be sustained in future.

The above illustrations are meant to help the investors have an understanding of MOVI. The above illustration contained herein may include statement of future expectations and other forward looking statements that are based on certain calculations 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 table/statement/graph. Past Performance may or may not be sustained in future. NSE Indices Ltd (IISL) calculates and maintains the NIFTY MOVI.

What is ‘Indicative Buy Zone’?

'Indicative Buy Zone’ indicates favorable market fundamentals which an investor may look at to simply take or increase any existing exposure in equities.

What is ‘Indicative Sell Zone’?

‘Indicative Sell Zone’ indicates unfavorable market fundamentals whereby an investor may look at reducing any existing exposure in equities.

What is MOVI? Why MOVI?

Motilal Oswal Value Index (MOVI) is a Systematic Transfer Plan from Motilal Oswal MOSt Ultra Short Term Bond Fund to Motilal Oswal MOSt Focused 25 Fund, Motilal Oswal MOSt Focused Midcap 30 Fund and Motilal Oswal MOSt Focused Multicap 35 that enables allocation between debt and equity asset classes with allocations based on MOVI levels. It allows Unit holders holding units in non-demat form to take advantage of fluctuations in equity market valuations and not just market levels. The transfers will be enabled in the reverse as well.

MOVI because -

a) Systematic Transfer Plan

b) A tool to help you plan your investments.

c) Benefit from changing market valuations.

d) No constant tracking of markets to ascertain an ideal entry time in Equities.

e) Break-free from indecisions associated with investments during bear/ volatile markets.

What are the different Equity and Debt allocations at different MOVI levels?

a) Equity and Debt allocations based on 90 Day Moving Average of NIFTY MOVI to eliminate anomalies.

b) Equity & Debt allocations arrived at by using historical data.

c) Allocation matrix is to be reviewed on a half-yearly basis.

Any change in methodology of MOVI would only be carried out by obtaining prior consent of the Board of Trustees of Motilal Oswal Trustee Company Limited (MOTC), the Trustees to Motilal Oswal Mutual Fund (MOMF).

How does this allocation between funds help the investor?

The allocation between Motilal Oswal Ultra Short Term Fund to Motilal Oswal Focused 25 Fund, Motilal Oswal Midcap 30 Fund and Motilal Oswal Multicap 35 Fund.

a) Helps the investors in taking advantage of changing market valuations by reducing exposure to equity when market valuations appear expensive and increasing exposure to equity when market valuations appear attractive

b) Diversification between Equity and Debt

What enrolment options are available with MOVI?

MOVI presently offers two enrolment options:

a) One Time Investment

b) Systematic Transfer Plan (STP)

Is there a minimum investment amount?

The minimum investment amount under ‘One Time’ enrollment option is Rs. 5,000/- and under ‘ (STP)’ enrollment option is Rs. 1,000/- per month.

Is there a maximum investment period?

There is no maximum period.

How often will the allocation take place?

The allocation date will be the 15th of every month. In case the date of allocation falls on a Non-Business Day or falls during a book closure period, the immediate following Business Day will be considered as the date of allocation.

In addition, under the ‘One Time’ enrollment option, allocation will occur on the business day succeeding the date of enrollment into the MOVI.

An investor has an existing Systematic Investment Plan into Motilal Oswal Ultra Short Term Fund which takes place on the 15th of every month. If enrolled for MOVI, will this investment be allocated on the same 15th?

An investor with an existing Systematic Investment Plan (SIP) in the Transfer or scheme i.e. Motilal Oswal MOSt Ultra Short Term Bond Fund where the date of SIP falls on a date later than or on 15th of every month, then allocation for this investment will occur on 15th of the subsequent month.

In this case, how will the allocation occur?

Under ‘One Time Investment’ enrollment option, in addition to the 15th of every month, allocation will occur on the business day succeeding the date of enrollment into the MOVI.

How can an investor make part redemptions from MOVI?

The investor will be able to view the break-up of his existing investments in Motilal Oswal MOSt Ultra Short Term Bond Fund and Motilal Oswal MOSt Focused 25 Fund or Motilal Oswal MOSt Focused Midcap 30 Fund or Motilal Oswal MOSt Focused Multicap 35 Fund on his consolidated statement of accounts. The investor will be required to instruct the AMC, the scheme name from which he/ she wishes to redeem.

Why can’t the allocations be individual to each investment?

Allocations can’t be individual to each investment as the market value of previous investments may have changed, which means the original allocation may have changed which may not necessarily be in line with the allocation matrix.

Hence, any new investment made will be allocated in a way whereby these market movements are taken into consideration.

As a result of such redemption request, will the allocations not digress?

Any deviation in allocations resulting from such part redemption will be aligned to the allocation matrix on the next date of allocation i.e. 15th of next month.

How can an investor subscribe to the MOVI?

Investors can subscribe to the MOVI by investing in MOSt Ultra Short Term Bond fund of Motilal Oswal Asset Mutual Funds and enrolling for MOVI Pack Plan option in the enrollment form

Product Labeling

Disclaimer

This document has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be reliable.

The information contained in this document is for general purposes only and not a complete disclosure of every material fact and terms and conditions and features of Motilal Oswal MOSt Ultra Short Term Bond Fund, Motilal Oswal MOSt Focused 25 Fund, Motilal Oswal MOSt Focused Midcap 30 Fund and Motilal Oswal MOSt Focused Multicap 35 Fund.

The information / data herein alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions, figures, charts/graphs, estimates and data included in this presentation are as on date and are subject to change without notice.

While utmost care has been exercised while preparing this document, Motilal Oswal Asset Management Company Limited does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

Readers shall be fully responsible/liable for any decision taken on the basis of this presentation. No part of this document may be duplicated in whole or in part in any form and/or redistributed without prior written consent of Motilal Oswal Mutual Fund/Motilal Oswal Asset Management Company Limited. Readers should before investing in the Scheme make their own investigation and seek appropriate professional advice. For details on taxation, please refer to the Section on 'Taxation on investing in Mutual Funds' in SAI.

IISL Disclaimer: Motilal Oswal Value Index (MOVI) is not sponsored, endorsed, sold or promoted by NSE Indices Ltd (IISL). MOVI 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 MOVI and availing the services generally or particularly or the ability of MOVI to track general stock market performance in India. Please read the full Disclaimers in relation to the MOVI in the Scheme Information Document.

Statutory Details: Constitution: Motilal Oswal Mutual Fund has been set up as a trust under the Indian Trust Act, 1882. Trustee: Motilal Oswal Trustee Company Limited. Investment Manager: Motilal Oswal Asset Management Company Ltd. Sponsor: Motilal Oswal Securities Ltd. 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.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

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