Reset To Resurgence: How Prateek Agrawal Steered Motilal Oswal MF To ₹1 Lakh Crore AUM

Mutual Fund, says a lot about the mindset behind the fund house’s recent achievement: crossing ₹1lakh crore in Assets Under Management (AUM). In a candid conversation on the latest episode of Simple Hai! with Vivek Law, Agrawal offered more than just numbers—he shared the thought process, discipline and strategy that powered one of the most remarkable turnarounds in India’s mutual fund space.

A Strategic Reset, Rooted in Growth

Motilal Oswal Mutual Fund has always championed focused, conviction-led investing. But over the last couple of years, it sharpened this philosophy further. Moving beyond its well-known QGLP (Quality, Growth, Longevity, Price) framework, the fund house adopted a more structured approach.

“We began by identifying sectors with longevity of growth. Then, within those sectors, we picked the companies that offered the right blend of opportunity and valuation,” Agrawal explained.

The shift wasn’t just philosophical—it involved tough decisions. Portfolios were repositioned, the focus became long-term earnings growth, and the team resisted the temptation to chase short-term outperformance. “We decided to be growth managers, and stay the course,” he told host Vivek Law.

Less is More: A Distinct Portfolio Philosophy

Motilal Oswal’s funds typically hold between 20 to 35 stocks. This is by design, not constraint. “We don’t believe in over-diversification,” said Agrawal. “Each of our funds is built to play a role in a client’s broader portfolio. It’s not meant to mirror an index.”

This clarity of purpose has helped the fund house stand out, particularly as it reoriented itself around key themes such as defence, renewables, mid- and small-cap IT, NBFCs and luxury consumption.

January’s Jolt: When External Forces Overruled Fundamentals

Even the best-laid strategies are vulnerable to market forces. The start of 2025 brought a sharp correction across Indian equities—one that spared neither high nor low PE stocks, large caps nor mid caps.

Agrawal unpacked the real reason behind this sudden drawdown: the behaviour of Foreign Portfolio Investors (FPIs). Contrary to the belief that Indian valuations had overheated, the problem lay elsewhere.

Yield-seeking FPIs pulled out as global bond yields rose.

Hedge funds, often leveraged and driven by currency volatility, reacted sharply to rupee movements.

Emerging market investors redirected capital after a dramatic shift in sentiment towards China.

Alpha-seeking institutions, though more stable, were also impacted by global trends.

“Stocks that did well from September to December saw the biggest fall in January—not because they were overvalued, but because of selling pressure from overseas,” Agrawal said. By February, however, the tide began to turn, with US yields and the dollar index softening, and India once again looking attractive relative to other emerging markets.

Lessons from a Career in Capital

Agrawal also spoke about the deeper lessons he’s picked up over decades in markets. Among them:

Hunger is essential—not just for success, but for sustained wealth creation.

Focus separates the dreamers from the doers.

Luck matters, but so does recognising your value and securing your financial upside—whether through ESOPs or equity.

Risk-taking is crucial early on, but knowing when to turn conservative is what helps preserve wealth.

He added that many successful entrepreneurs start out in high-risk areas like trading, but eventually move to more structured businesses such as manufacturing or services.

Advice for India’s Young Investors

To young investors eager to begin their wealth journey, Agrawal offered a simple blueprint: avoid the mistake of excessive diversification. “Start with one growth-oriented fund and one value fund from two different AMCs. That’s a good way to get the best of both worlds,” he suggested.

He recommends large and mid-cap or multi-cap funds for beginners, given their predefined asset allocation and smoother ride across market cycles.

“Mutual funds are an excellent vehicle for long-term compounding. There’s no tax until you redeem, and time is on your side. If you’re patient, financial freedom is well within reach,” he said.

A Larger Mission

For Agrawal, investing isn’t just a profession—it’s a mission. “Helping people achieve financial freedom is one of the most meaningful things we can do,” he said.

And with ₹1 lakh crore in AUM now under its belt, Motilal Oswal Mutual Fund is well-positioned to make that mission count—for millions of Indian investors.