Motilal Oswal: Pioneering Financial Services and Investment Solutions in India

Introduction

Motilal Oswal Financial Services, founded by Motilal Oswal and Raamdeo Agrawal in 1987, began as a stockbroking firm. Over the years, the company expanded into other financial services, starting investment banking in 2005 and launching a private equity fund in 2006.

In 2006, it acquired Peninsular Capital Markets, a brokerage firm in Kerala, for INR 35 crore. The company also partnered with major banks like SBI (2006), Punjab National Bank (2007), and Axis Bank (2013) to offer online trading services¹.

In 2010, Motilal Oswal started a mutual fund business under Motilal Oswal Asset Management Company (MOAMC). Three years later, in 2013, it launched Aspire Home Finance Corporation Limited (AHFCL) to provide loans for home purchases, construction, and renovations.

Board Of Directors Of Motilal Oswal - Financial Services Company

Along with the above, Divya Momaya and Swanubhuti Jain are the independent directors of the company.

Milestones Achieved by Motilal Oswal Financial Services:

• 1987: Established in Mumbai by founders Motilal Oswal and Raamdeo Agrawal.
• 1990: Listed on the Bombay Stock Exchange (BSE).
• 1994: Achieved listing on the National Stock Exchange (NSE).
• 2007: Launched its Initial Public Offering (IPO) and became the subject of a Harvard Business School case study.
• 2009: Reached a significant milestone with a customer base exceeding 5,00,000.
• 2010: Founded the Motilal Oswal Foundation to support social initiatives.
• 2021: Surpassed INR 2 trillion in Assets Under Management (AUM).

Products/Services Offered By Motilal Oswal:

Motilal Oswal Group is a well-diversified financial services company dedicated to helping clients grow and manage their wealth. Here’s a detailed look at their offerings:

1. Trading Services

• Equities: Enables buying and selling of shares listed on stock exchanges.
• Derivatives: Offers futures and options trading to hedge risks or leverage investments.
• Commodities: Facilitates trading in metals, energy, and agricultural commodities.
• Currency Trading: Provides access to the forex market for trading currency pairs.
• Depository Services: Allows clients to hold and manage securities in electronic form.

2. Wealth Creation and Management Services

• Portfolio Management Services (PMS): Customised investment strategies tailored to individual goals and risk profiles.
• Mutual Funds: Access to a wide range of mutual fund products across asset classes.
• Insurance: Comprehensive insurance solutions, including life and health insurance.
• Wealth Management: Personalized financial planning to grow and safeguard wealth.
• Private Wealth Management: Specialised services for high-net-worth individuals.

3. Institutional Services

• Institutional Broking: Advisory and brokerage services for institutional clients, focusing on research-driven insights.
• Investment Banking: Services include mergers and acquisitions (M&A), capital raising, and strategic advisory.
• Private Equity: Investments in promising businesses with high growth potential.
• Asset Management: Professionally managed funds tailored to diverse investor needs.

4. Financing Services

• Home Finance: Loans for home purchase, construction, renovation, or extension through Aspire Home Finance Corporation Limited.

5. Technology-Driven Solutions

• Advanced platforms for trading, tracking, and managing investments:
  • Mobile Apps: User-friendly apps for on-the-go trading and portfolio monitoring.
  • Web Platforms: Seamless browser-based trading solutions.
  • Desktop Applications: High-speed, feature-rich software for active traders.
  • Smartwatch Apps: Quick access to market updates and portfolios.

6. Comprehensive Network and Reach

• Presence in over 2,500 locations across 550 cities, ensuring accessibility.
• Serving a robust client base of 46 lakh+ registered customers, with a strong focus on customer satisfaction.

List Of Top Mutual Funds Offered By Motilal Oswal

Investing in equity mutual funds is risky as the returns fluctuate due to fluctuation in the prices of the stocks in which the mutual fund management company is investing your money. The investments provide high returns but come with high risk as well. To stabilise your portfolio, it is important to add non market linked fixed returns to your portfolio. This can be done by adding fixed income securities like corporate bonds and securitised debt instruments which offer fixed returns. Click the link below to explore the current live deals in corporate bonds and SDIs:

Technology And Innovation In Motilal Oswal:

Motilal Oswal uses technology to make investing easy and efficient for its clients. The Motilal Oswal RISE App is a cutting-edge platform designed to empower financial advisors and partners. It provides tools for seamless client management, portfolio tracking, and real-time market insights, enabling users to offer personalised investment advice. With its user-friendly interface and advanced features, the app supports efficient operations and enhances client engagement. Here is how the different apps from Motilal Oswal enhance the investment experience:

1. Motilal Oswal Wealth Management App

• A one-stop platform for managing investments.
• Provides access to research reports, portfolio tracking, and personalized financial advice.

2. Motilal Oswal Trade App

• Simplifies stock, bond, and securities trading.
• Offers real-time market data, advanced charting tools, and an intuitive interface for hassle-free trading.

3. Motilal Oswal SIP App

• Designed for mutual fund investments through Systematic Investment Plans (SIPs).
• Helps users set up and track SIPs while providing regular portfolio updates.

These apps are part of Motilal Oswal's commitment to leveraging technology and innovation, ensuring clients enjoy a smooth and convenient investing journey.

Key Strengths Of Motilal Oswal Financial Services

1. Market Leader in Broking:

• Motilal Oswal Financial Services (MOFSL) is a top full-service broker with the highest gross brokerage revenue as of March 2023.
• It serves retail clients across 98% of India's pin codes through a robust online platform, apps, and business channels.
• The company manages an AUM (Assets Under Management) of INR 4.4 Lakh Crore as of December 2023.

2. Diversified Business Model:

• MOFSL offers a wide range of financial services under one roof, including broking, asset management, and research.
• Its strong online platform, diverse product offerings, and focus on client relationships make it a leader in the industry.

3. Unique Client Acquisition Strategy:

• MOFSL uses a combination of direct channels and a network of 9,300 business associates to acquire clients.
• Its "Phygital Business Model," blending physical branches with digital platforms, expanded the client base to 40 lakh by December 2023.
• The client base has grown at an impressive CAGR of 29% since FY 2021.

4. Experienced Leadership:

• The company is led by founders Motilal Oswal and Raamdeo Agrawal, whose expertise and entrepreneurial spirit drive growth.
• Their strategic vision and market insights give MOFSL a competitive advantage in implementing strategies and managing stakeholder relationships.

5. Consistent Financial Performance:

• MOFSL has delivered steady revenue and profit growth, achieving a 25% CAGR from FY 2021 to December 2023.
• Its strong balance sheet highlights its focus on financial strength, profitability, and strategic investments.

Source: Audited financial statements of Motilal Oswal Financial Services of FY’24 and management information.

To arrange the capital, Motilal Oswal also offers corporate bonds. These bonds from the company are secured and are rated by the credit rating agencies. On Grip Invest, investors invested in CRISIL ‘AA’ rated bonds of the company that offered fixed returns of up to 9.1%. To invest in similar, rated, regulated and secured corporate bonds sign-up on Grip Invest today and start earning fixed returns:

To keep yourself updated with similar opportunities, sign up on Grip Invest today.

References:
1. Annual Report of Motilal Oswal, Accessed from: https://www.motilaloswalgroup.com/Investor-Relations/Financial-Report/Annual

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Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
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