Motilal Oswal Nifty 500 Index Fund Invest in India’s Only Multicap Index Fund Product Suitability This product is suitable for investors who are seeking* Return that corresponds to the performance of Nifty 500 Index subject to tracking error Investment in equity and equity securities covered by Nifty 500 Index Long Term Capital Growth *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content from this presentation requires the written approval of Motilal Oswal Asset Management Company. INDIA’S GROWTH STORY INTACT OVER MEDIUM-LONGER TERM For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content from this presentation requires the written approval of Motilal Oswal Asset Management Company. growth India’skey macroeconomic factor propelling may may be not in future. sustained and purpose used notused should explain only for investmentthe toconceptof development or implementation an illustration strategy. and for Past is or may performance 1 (Forex Reserve) 3 & (Repo Rate) Data as ofDate mentioned respective chart Data in title, Source- All time high Forex Reserves; great cushion cushion great Reserves; Forex high time All USD Billion 10% 100 200 300 400 500 600 4% 6% 8% 0% 2% - Apr-01 1950-51 Mar-02 27-Apr-01 Lowest Repo Rate 1954-55 9.00% Mar-03 1958-59 Oct-04 1962-63 1966-67 Dec-06 1970-71 Aug-07 1974-75 Jul-08 30-Jul-08 1978-79 Dec-08 9.00% (asof 09-Oct-2020) 1982-83 Mar-10 21-Apr-09 4.75% 1986-87 Jan-11 For Financial Professionals. Not for Public Distribution. PROPRIETARY. content any or distribute reprintto PROPRIETARY. Permission Not ForFinancialProfessionals. Distribution. for Public 1990-91 Feb-12 1994-95 Mar-13 25-Oct-11 (as18-Sep-2020)of 1998-99 Aug-14 8.50% 18 Sep 2020 Sep18 $545 $545 Billion 2002-03 Apr-16 09-Oct-20 4.00% 2006-07 Oct-17 from this presentation requires the written approval of Motilal Oswal Asset Management Company. ManagementOswal of writtenAssetMotilal approval the requires presentationthisfrom 2010-11 Jul-19 2014-15 Apr-20 2018-19 • • • 100 150 50 consumption. by There helping GDP growth rate to reduce cost of financing and thereby fueling production and Reporate years lowest level at over is 20 last below bein $50 2021) also crude expected to be andaround in2020 expected ~$37 to drastically come to down in in 0.93% 2019, from 5% 2012 (CAD - Low crude prices meanlower Account Current (CAD) Deficit case of global volatility India has 0 rbi.org.in, 2 2 (Brent Oil) Cruderbi.org.in, Sep-10 Mar-11 Year 10 Brent Crude - Prices Oil solid forexsolid reserve Sep-11 Mar-12 Sep-12 (USD) Oil Crude Brent Mar-13 Sep-13 2 1 Mar-14 Sep-14 www.macrotrends.net of over $545 bn. of A $545 over solid bufferin Mar-15 Sep-15 Mar-16 Sep-16 (as30-Sep-2020)of Mar-17 Sep-17 ; ; The above graph is Mar-18 . This is expected 3 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 4 India expected to benefit from young working age population • Economic growth potential that results from shift in population’s age structure • 65% of the population under 35yrs4 • Key determinants of economy’s longer run growth rate- Labour (young population) & capital (higher saving) inputs • Shape aggregate consumption, saving and investment decision • Structural factors of Indian economy favourable to catapult growth • Consumption driven economy (Domestic consumption powers 60% of GDP)5 • Relatively high gross savings as % of GDP (India ~31%, World Avg.~25%)6 Source- 4 - World Bank, 5 - World Economic Forum, 6 - World Bank, Both Info graphics - Economic times & UN; The above graph is used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. Past performance may or may not be sustained in future. For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content 5 from this presentation requires the written approval of Motilal Oswal Asset Management Company. Drivers of future consumption Source- World Economic Forum; The above graph is used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. Past performance may or may not be sustained in future. For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content 6 from this presentation requires the written approval of Motilal Oswal Asset Management Company. Global PE/VC Increasing Investment in India • India is emerging as one of the leading destinations for global PE/VC ($48bn inflows in 2019, a 28% increase over 2018 / Following global trend at 1.7% of GDP)7 • Translates to $ 87.5bn of funding between 2017-2019 towards job creation, incremental capacities, technology, infrastructure etc. - 26 lakh job generated in 2019 by PE/VC backed startup8 • Investment in core sector - financial (especially Fintech and NBFC) service accounting to $23.7bn between 2017-2019 Source- 7 & 8 - https://ivca.in/; The above graph is used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. Past performance may or may not be sustained in future. For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content 7 from this presentation requires the written approval of Motilal Oswal Asset Management Company. Short term headwinds • Global economic impact due to the Covid-19 pandemic expected to be broader than the Great Depression of 19289 • De-Growth projected by World Bank for FY 21 (India- 9.6%)10 • Balancing act between containing outbreak and reducing economic toll • Weak credit growth (slowed to 6.0% from 9.8% last year)11 Developed and Emerging Economies GDP Global GDP Growth Rate Growth Rate Source- Source- 9 - https://www.imf.org/external/index.htm, 10- World Bank, 11 - https://www.rbi.org.in/ The above graph is used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. Past performance may or may not be sustained in future. For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content 8 from this presentation requires the written approval of Motilal Oswal Asset Management Company. De-stablizing world’s factory • Global anti China sentiment primarily driven by: • Unfair trade and technology practices • Territorial Disputes with neighbouring countries • Accusation by US for supressing early information on the virus • Great opportunity for India to become a manufacturing hub - India putting together land bank up to the size of Luxemburg, a special task force to promote make in India • Factors in favour of India- • Considerable improvement in Rank of Ease of Doing Business from 142 in 2014 to 63 in 2020 among 190 countries12 • Young India - Prime age labor being added, will help increase consumption and savings • Radical reforms - Implementation of GST, Digitisation Drive, Insolvency Code, Easing FDI Policy Regime, Infrastructure push, Corporate Tax Rate cut to 15%) Source- 12 - https://www.doingbusiness.org/ For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content 9 from this presentation requires the written approval of Motilal Oswal Asset Management Company. De-stablizing world’s factory • Challenges for India - • Need to fully realize comparative manufacturing advantage • According to Nomura Securities 56 firms left China between August 2018-August 2019 (2- Indonesia, 8- Thailand, 11- Taiwan, 26- Vietnam, only 3 came to India) • Twin balance sheet problems (Over leveraged companies & banks with bad loans) • Weak linkage to global value chain • Although there have been big ticket reforms, policy implementation will be key For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content 10 from this presentation requires the written approval of Motilal Oswal Asset Management Company. Gateway to invest in India’s growth story MOTILAL OSWAL NIFTY 500 INDEX FUND For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content from this presentation requires the written approval of Motilal Oswal Asset Management Company. Why Nifty 500 Index is good proxy for India’s Listed Universe Total Market Cap Coverage Total Mcap Coverage Nifty 500 India's listed universe Ex Nifty 500 companies Description (INR Crores) 5.80% Nifty 500 Index Companies 1,46,23,365.57 94.20% India's Listed Universe Ex Nifty 500 9,00,901.80 5.80% Companies13 Total India's Listed Universe 1,55,24,267.37 100.00% 94.2% Nifty 500 Index broadest benchmark index covering ~94% of India’s listed universe Source: Data as of September 30, 2020. 13 - India’s Listed Universe Total Mcap www.bseindia.com; Nifty 500 Index Companies – NSE. The information / data herein alone is not sufficient and shouldn’t be used for implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions, figures, estimates and data included in this article are as on date. The article 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 Readers shall be fully responsible/liable for any decision taken on the basis of this article. For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content 12 from this presentation requires the written approval of Motilal Oswal Asset Management Company.