India’s Shifting Investment Landscape Calls For Tiered Strategies, Says Motilal Oswal AMC’s Akhil Chaturvedi

As India’s economy deepens and investor participation widens, the financial landscape is shifting rapidly. Akhil Chaturvedi, Executive Director and Chief Business Officer at Motilal Oswal Asset Management Company (AMC), believes the time has come to move beyond a one-size-fits-all investment approach.

In an insightful interview with veteran finance journalist Vivek Law on the Simple Hai! show recently, he told Law, "Mutual funds are a fantastic entry point for new investors, but as wealth grows, the need for differentiated, higher alpha products becomes more pressing." That’s where offerings like PMS (Portfolio Management Services), AIFs (Alternative Investment Funds), and now SIFs (Special Investment Funds) enter the picture.

The Layered Investment Approach

Chaturvedi told Law he believes that India’s rising investor base demands a more layered ecosystem. "A Rs 10 lakh investor and a Rs 10 crore investor can't be treated the same," he said. "They require different strategies, risk profiles, and expectations."

India’s financial evolution has necessitated a stack of investment products—each tailored to specific wealth levels, goals, and risk appetites.

• Mutual Funds: Ideal for retail investors starting out, offering diversification and simplicity.

• PMS: Starting at Rs 50 lakh, these allow for concentrated, high-conviction strategies managed with greater flexibility.

• AIFs: Entry at Rs 1 crore, these open up access to long-short strategies, private credit, unlisted equity, and thematic plays.

• SIFs: Recently approved by SEBI with a lower Rs 10 lakh ticket size, these serve the semi-affluent investor with curated strategies that bridge the gap between mutual funds and PMS.

“Over the next 10 years, SIFs could become as big as PMS or AIFs,” Chaturvedi added. “They offer the flexibility and focus today’s investors are looking for.”

Conviction Over Trends

Motilal Oswal AMC is known for high-conviction products built on long-term macro and micro narratives. Chaturvedi mentioned a standout example - the Next Trillion Dollar Opportunity (NTDOP) fund—launched in 2007 when India’s GDP crossed $1 trillion. The premise was to ride the next phase of economic expansion. Today, the fund’s NAV has grown 11x since inception, vindicating its strategy.

Another is the Founders Fund, he said, which focuses on founder-led companies and businesses with strong skin in the game. “India’s growth is still largely founder-driven,” Chaturvedi said. “These are the companies that build value with a long-term mindset.”

He also highlighted thematic PMS offerings such as Business Opportunities, Focused 30, and Midcap 30, each built on distinct narratives and sectoral lenses.

Rise of Retail & Tier 2/3 Investors

India’s mutual fund investor base has exploded in recent years—rising from 2.5 crore to over 5 crore accounts in under five years. SIP inflows have hit record levels, and more than 70 percent of new accounts are now coming from Tier 2 and Tier 3 cities. This surge, Chaturvedi said, reflects a deepening financialisation of savings and growing comfort with equity markets among India’s emerging middle class. “Earlier, people saw equity as risky or speculative. Today, there’s trust in the system—driven by regulation, transparency, and awareness.”

The Rs 100 Lakh Crore Opportunity

Chaturvedi said he estimates that for every 1% shift in household savings toward capital markets, nearly Rs 10 lakh crore could flow in. “Even if we move from 5 percent to 10 percent of household savings in equities, that’s a transformational Rs 50 lakh crore shift.”

In a country where fixed deposits and real estate have historically dominated portfolios, this transition marks a tectonic cultural and generational change.

Advice to Young Investors

Chaturvedi offered a simple roadmap for those starting out:

• Begin with actively managed large-cap or flexi-cap mutual funds

• Add exposure to index funds, such as the Nifty 500

• Use SIPs for consistency and discipline

He cautioned against chasing short-term fads or market noise. “India is a structural story. You don’t need to overcomplicate it. Stay invested and think long-term.”

Domestic Investors Taking the Lead

With foreign investor ownership in Indian markets dropping from 23% to around 18 percent, domestic players are increasingly becoming market-makers. At the same time, India's MSCI Emerging Markets Index weight has risen from 7 percent to over 22 percent—a testament to growing global confidence.

“Macro stability, fiscal prudence, and demographic strength are all working in our favor,” said Chaturvedi. “The India story is resonating not just at home, but globally.”

Career Learnings & Market Wisdom

Chaturvedi, who has spent over 20 years at Motilal Oswal, sees strong parallels between long-term investing and long-term careers.

“Both require patience, learning, and resilience. You won’t win every quarter, but if you stay the course and build conviction, the compounding adds up.”

He recalled the global financial crisis of 2008 as a turning point. “It taught me that reacting emotionally doesn’t help. You need a framework, and you need to trust it—especially when markets are volatile.”

Looking Ahead

As India’s economy grows, so too must its investment infrastructure. Chaturvedi is optimistic about the future of PMS, AIFs, and SIFs as tools that can serve an increasingly sophisticated investor base.

“The layers of India’s financial ecosystem are finally starting to stack up—across income brackets, geographies, and aspirations. Our job now is to build the right products for the right investors at the right time.”

For India’s fast-growing investor class, Akhil Chaturvedi’s advice is clear: Stay the course, trust the structure, and embrace the multi-layered journey of wealth creation.