Motilal Oswal AMC doubles market share in equity funds as AUM hits Rs 1.5 lakh crore

Motilal Oswal Financial Services Limited (NSE: MOTILALOFS) reported on July 2, 2025, that its wholly owned subsidiary Motilal Oswal Asset Management Company Limited (MOAMC) has surpassed ₹1.5 lakh crore in assets under management (AUM). This milestone spans its offerings across active and passive mutual funds, Portfolio Management Services (PMS), and Category-III Alternative Investment Funds (AIFs). The achievement underscores MOAMC’s consistent long-term strategy rooted in earnings-led, growth-oriented investing.

The stock of Motilal Oswal Financial Services closed at ₹854.00 on July 2, 2025, marking a 1.68% decline from the previous close of ₹868.60. Despite the dip, analysts suggest the broader sentiment remains constructive, supported by MOAMC’s growing presence in India’s expanding mutual fund landscape.

How has Motilal Oswal AMC scaled its AUM 4x in five years despite rising competition in asset management?

From an AUM base of ₹35,180 crore in June 2020 to ₹1.5 lakh crore by mid-2025, Motilal Oswal Asset Management Company has delivered an impressive compound annual growth rate (CAGR) of 34%. The trajectory reflects a sharp focus on high-conviction portfolios and disciplined investment philosophy. According to the official statement, MOAMC’s AUM composition now includes approximately ₹84,300 crore in active mutual funds, ₹33,600 crore in passive funds, ₹15,000 crore in PMS, and ₹17,100 crore in Category-III AIFs.

Institutional sentiment toward MOAMC’s approach has grown more favorable over the past two years, with fund flows showing clear upward momentum. The firm’s emphasis on identifying scalable businesses in emerging and underpenetrated segments has helped differentiate its offerings amid a crowded market of index-tracking strategies.

What role did net inflows and SIPs play in helping Motilal Oswal AMC gain market share in FY25?

During FY25, MOAMC captured a 7.8% share of net sales in equity-oriented mutual fund schemes—up sharply from just 1.9% in FY24. This leap in market share coincided with net flows of ₹48,450 crore across its fund categories. Systematic Investment Plans (SIPs) were a notable contributor, accounting for ₹9,256 crore of inflows, pointing to a growing base of retail investors committed to long-term equity investing.

This data suggests that MOAMC has become increasingly relevant among India’s retail mutual fund ecosystem. With over 95 lakh unique folios and ~79 lakh customers across 200+ cities, its multi-platform distribution model has helped deepen penetration across Tier II and Tier III locations, where wealth management remains underpenetrated.

How do MOAMC’s fund strategies differ from index-based offerings in India’s maturing AMC landscape?

Motilal Oswal Asset Management Company continues to position itself as a growth-focused asset manager, favoring earnings-compounding businesses over index-hugging strategies. This includes a focus on sectors or companies often overlooked in broader benchmarks. Unlike peers that rely heavily on passive fund growth or Nifty/Sensex-linked exposures, MOAMC emphasizes differentiated portfolios built through bottom-up stock selection, which is evident in its high active share in several flagship schemes.

According to Prateek Agrawal, Managing Director and Chief Executive Officer of MOAMC, the firm remains committed to building high-conviction portfolios that are “meaningfully differentiated from the index.” This contrasts with many new entrants in the AMC space who rely predominantly on low-fee, passively managed products to scale assets rapidly.

What have MOAMC executives said about the AUM milestone and its long-term investing philosophy?

In the press release issued on July 2, Group Managing Director of Motilal Oswal Financial Services Limited, Navin Agarwal, attributed the milestone to a consistent commitment to long-term equity investing. He noted that MOAMC’s trajectory has been driven by backing quality businesses with sustainable growth potential and delivering research-driven investment strategies.

Prateek Agrawal, the AMC’s managing director and CEO, emphasized client trust and team execution as central pillars. He added that the asset manager’s focus remains firmly on scalable businesses with long-term earnings momentum. He further stated that this milestone motivates the organization to innovate, expand reach, and deepen client relationships.

The messaging from senior management reiterates MOAMC’s strategic pivot away from cyclical plays or momentum trading and toward a long-term, buy-and-hold equity philosophy.

How does MOAMC’s product mix reflect diversification across India’s growing investment landscape?

As of March 31, 2025, MOAMC’s asset mix was heavily weighted toward equities. It managed ₹6,518,806.91 lakh in equity mutual funds, supported by ₹1,671,400.04 lakh in index funds and ₹969,532.24 lakh in other ETFs. Debt and hybrid funds contributed ₹51,704.82 lakh and ₹160,032.60 lakh, respectively, while liquid funds stood at ₹98,340.58 lakh. This reinforces the equity-centric identity of MOAMC but also reflects growing traction in passives and hybrid products.

Its AIF and PMS segments, while smaller in relative terms, are important for high-net-worth clients and offer a route to differentiated alpha in a less-regulated format. The Category-III AIF portfolio at ₹17,100 crore suggests that institutional clients have also found value in MOAMC’s alternatives strategy.

How is the Motilal Oswal stock performing in FY25, and what are investor takeaways from its AMC business strength?

Motilal Oswal Financial Services has shown moderate volatility in FY25 so far. The stock hit a 52-week high of ₹1,064.00 on October 18, 2024, and a low of ₹507.55 on July 23, 2024. As of July 2, 2025, it closed at ₹854.00, with a 20% price band and a price-to-earnings (P/E) ratio of 20.74. Despite a one-day decline of 1.68%, investor sentiment remains generally bullish due to the AMC’s robust inflows and rising market share.

Analysts suggest that as mutual fund penetration deepens and SIP contributions continue to expand, firms like MOAMC—especially those with proven track records and clarity of purpose—may see steady AUM accretion. The stock’s adjusted price-to-earnings valuation is seen as fair given the AMC segment’s contribution to profitability and recurring fee-based income.

What is the strategic outlook for MOAMC as it builds scale across mutual funds, PMS, and AIFs?

Looking ahead, MOAMC plans to maintain its focus on high-quality, high-growth businesses while expanding its investor base in underpenetrated geographies. It is expected to explore new thematic and global strategies under both active and passive structures. Analysts expect continued innovation across ETFs, international FOFs, and PMS-linked thematic baskets that align with evolving investor preferences.

Its strong SIP book, improving AIF traction, and ability to raise flows without overly relying on distribution incentives offer it a strategic edge. The firm is likely to deepen its institutional and retail partnerships, particularly in Tier II and Tier III locations.

While some challenges may arise from rising competition, particularly from discount brokers entering the AMC space, MOAMC’s differentiated positioning and brand legacy give it a credible pathway to sustain growth.

What are the risks and disclaimers that investors should consider in MOAMC’s future performance?

While AUM growth is a clear signal of investor confidence, it is not indicative of scheme performance or investor returns. The AMC has clarified that the terms “Hi-Quality” and “Hi-Growth” refer to internal strategy nomenclature and not guaranteed returns. Furthermore, the high equity exposure makes MOAMC products sensitive to broader market volatility, regulatory changes, and sector-specific downturns.

The firm also disclosed in its standard disclaimer that past performance does not guarantee future results and that investors should consult scheme-related documents before making investment decisions.