PPFAS vs Motilal Oswal Mutual Fund

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PPFAS Mutual Fund and Motilal Oswal Mutual Fund are two Indian asset management companies that share a focused-portfolio approach to equity investing while differing in scheme set scope, international allocation, and the underlying investment doctrines. PPFAS Mutual Fund was set up on 10 October 2012 by founder Parag Parikh and operates seven active schemes as of May 2026, with the flagship Parag Parikh Flexi Cap Fund maintaining a focused portfolio of 25 to 37 stocks and up to 35 per cent overseas allocation. Motilal Oswal Mutual Fund was set up in 2008 by the Motilal Oswal Financial Services group and operates approximately 20 schemes, with the flagship Motilal Oswal Focused 25 Fund maintaining a strictly concentrated portfolio of 20 to 25 stocks under the AMC’s signature buy right sit tight investment doctrine.

The two AMCs share several philosophical commitments: focused portfolio construction (25 to 37 stocks at PPFCF, 20 to 25 stocks at Motilal Oswal Focused 25); long-term holding orientation with low portfolio turnover; quality emphasis in stock selection; and a willingness to deviate from benchmark composition for high-conviction positions. The differences include: international allocation (PPFAS includes up to 35 per cent overseas, Motilal Oswal Focused 25 is domestic only); investment doctrine emphasis (PPFAS combines value-investing and behavioural finance; Motilal Oswal emphasises QGLP, an acronym for Quality-Growth-Longevity-Reasonable Price); scheme set breadth (Motilal Oswal includes multiple international FoFs such as S&P 500 FoF and Nasdaq 100 FoF, while PPFAS embeds international exposure within its flagship rather than offering dedicated international FoFs).

Motilal Oswal Mutual Fund is also notable for being a prominent player in international Fund-of-Funds (FoF) products in India. The AMC’s Motilal Oswal Nasdaq 100 FoF, Motilal Oswal S&P 500 FoF, and Motilal Oswal MSCI EAFE Top 100 FoF are widely held by Indian retail investors seeking international exposure. PPFAS’s approach to international exposure is structurally different: rather than offering dedicated international FoFs, PPFAS embeds up to 35 per cent overseas allocation within the Parag Parikh Flexi Cap Fund and the Parag Parikh ELSS Tax Saver Fund, maintaining equity-oriented tax status.

This comparison covers the focused-portfolio commitments, philosophical emphases, scheme set differences, international allocation, fund manager structures, taxation, and recent developments at each AMC.

Comparison overview

DimensionPPFAS Mutual FundMotilal Oswal Mutual Fund
Founder / PromoterParag Parikh, PPFAS LtdMotilal Oswal Financial Services group
Set up date10 October 20122008
Total AMC AUMApproximately Rs 1.6 lakh croreApproximately Rs 80,000 to Rs 100,000 crore
Number of active schemes7Approximately 20
Flagship equity schemePPFCFMotilal Oswal Focused 25 Fund
Portfolio size at flagship25 to 37 stocks20 to 25 stocks
International allocationUp to 35 per cent in PPFCF and ELSSDedicated international FoFs
Investment doctrineValue, behavioural, focusedQGLP buy right sit tight
Expense ratio (PPFCF / MOF25 direct)Approximately 0.63 per centApproximately 0.95 per cent
Minimum investmentRs 1,000Rs 500

Focused portfolio approaches

Both AMCs commit explicitly to focused portfolio construction, although the implementation differs.

PPFCF operates with a focused portfolio of 25 to 37 stocks across Indian and international holdings. The portfolio is bounded by:

Motilal Oswal Focused 25 Fund operates under the SEBI focused fund category, which restricts the scheme to a maximum of 30 stocks. The scheme typically holds 20 to 25 stocks selected under the AMC’s QGLP framework. The portfolio is more concentrated than PPFCF (smaller number of stocks).

Other Motilal Oswal equity schemes include Motilal Oswal Flexi Cap Fund (formerly Motilal Oswal Multicap 35 Fund), Motilal Oswal Large Cap Fund, Motilal Oswal Midcap Fund, and Motilal Oswal Small Cap Fund. Most operate under the same QGLP framework.

Investment doctrines

The PPFAS investment philosophy is value-oriented and draws from Benjamin Graham, Warren Buffett, Charlie Munger, Howard Marks, and behavioural-finance thinkers Daniel Kahneman, Robert Shiller and James Montier. Key components:

Motilal Oswal Mutual Fund operates under the QGLP framework articulated by founder Raamdeo Agrawal and codified across the AMC’s investment process:

  • Quality: Quality of business (return on capital, competitive moats) and quality of management
  • Growth: Sustainable earnings growth over multiple years
  • Longevity: Long-term durability of the business model
  • Reasonable Price: Valuation at reasonable multiples relative to growth

The QGLP framework is paired with the buy right sit tight investment philosophy, which emphasises holding high-conviction positions for multiple years rather than trading in and out.

The two doctrines have overlapping emphases (long-term holding, quality focus, portfolio concentration) but different framings. PPFAS emphasises behavioural finance and margin of safety explicitly. Motilal Oswal emphasises the structured QGLP screen and growth durability.

International allocation

PPFAS embeds international exposure within its flagship equity schemes:

  • PPFCF: up to 35 per cent overseas (currently 11 to 16 per cent post the SEBI MF overseas investment cap freeze)
  • Parag Parikh ELSS Tax Saver Fund: up to 35 per cent overseas (currently 8 to 12 per cent)

The embedded international exposure within an equity-oriented mutual fund wrapper preserves equity mutual fund taxation in India treatment under Section 111A and Section 112A, provided the 65 per cent Indian equity threshold is maintained.

Motilal Oswal offers dedicated international Fund-of-Funds (FoFs):

  • Motilal Oswal Nasdaq 100 FoF: invests in the Motilal Oswal Nasdaq 100 ETF, providing exposure to the top 100 non-financial stocks on the Nasdaq exchange
  • Motilal Oswal S&P 500 FoF: invests in an S&P 500 tracking ETF, providing exposure to the largest 500 US stocks
  • Motilal Oswal MSCI EAFE Top 100 FoF: provides exposure to developed market stocks outside the US

The international FoFs hold 95 to 100 per cent in the underlying overseas ETFs and therefore do not qualify for equity-oriented mutual fund tax treatment. Following the April 2023 Finance Act amendments (see debt mutual fund taxation 2023), the international FoFs are taxed at slab rate without indexation.

The structural tax difference favours PPFAS’s embedded international exposure for investors in higher tax brackets. The Motilal Oswal international FoFs offer cleaner separation but with adverse tax treatment.

Scheme set differences

PPFAS operates seven active schemes spanning equity (Flexi Cap, ELSS, Large Cap), hybrid (Conservative Hybrid, Dynamic Asset Allocation), and debt-cash (Liquid, Arbitrage). There is one scheme per major category.

Motilal Oswal operates approximately 20 schemes including:

  • Active equity: Focused 25, Flexi Cap, Large Cap, Midcap, Small Cap
  • ELSS: Motilal Oswal Long Term Equity Fund
  • International FoFs: Nasdaq 100 FoF, S&P 500 FoF, MSCI EAFE
  • Hybrid: Equity Hybrid Fund
  • Debt: Multiple debt schemes
  • Passive: Various index funds and ETFs

The scheme-set contrast reflects different strategic emphases. PPFAS emphasises focused boutique-AMC discipline. Motilal Oswal emphasises category coverage and international exposure through FoFs.

Fund manager structure

PPFAS operates with a small, stable investment team: Rajeev Thakkar, Raunak Onkar, Rukun Tarachandani, Raj Mehta, Mansi Kariya, Tejas Soman, Aishwarya Dhar.

Motilal Oswal Mutual Fund operates with a broader investment team led by historically Manish Sonthalia (CIO, Motilal Oswal PMS) and at the AMC by multiple fund managers including Aditya Khemani and others. Niket Shah is the fund manager of the Focused 25 Fund.

Expense ratio

PPFCF Direct Plan expense ratio is approximately 0.63 per cent. Motilal Oswal Focused 25 Fund Direct Plan is approximately 0.95 per cent. The Regular Plan expense ratios are approximately 1.32 per cent for PPFCF and approximately 1.90 per cent for Motilal Oswal Focused 25.

The expense ratio differential favours PPFCF by approximately 30 basis points at the Direct Plan level, partly reflecting the larger AUM scale economies at PPFCF.

Tax treatment

PPFCF and the Parag Parikh ELSS Tax Saver Fund qualify for equity mutual fund taxation in India under Section 111A and Section 112A.

Motilal Oswal Focused 25 Fund (a domestic equity scheme maintaining at least 65 per cent in Indian equity) qualifies for the same equity-oriented tax treatment.

Motilal Oswal international FoFs, by contrast, fall under debt mutual fund taxation 2023 slab-rate treatment because they hold less than 35 per cent in Indian equity.

Distribution

PPFAS distributes through PPFAS SelfInvest, CAMS, MF Central, BSE StAR MF, MF Utility, and third-party platforms. Motilal Oswal distributes through the parent Motilal Oswal Financial Services group’s broking network, the same third-party platforms, and distributor channels under AMFI ARN registration.

Recent developments

PPFAS launched PPDAAF in February 2024 and PPLCF in February 2026. PPFCF crossed Rs 1 lakh crore AUM in May 2025.

Motilal Oswal Mutual Fund continued growing its scheme set through 2024 to 2026 with continued international FoF inflows (subject to SEBI overseas cap constraints) and expansion of its passive offerings.

Criticism and debates

PPFAS has been criticised for high cash allocation in 2026 and AUM size. Motilal Oswal Focused 25 Fund and other Motilal Oswal equity schemes attracted criticism during 2022 to 2024 for relatively muted performance during periods unfavourable to the QGLP framework’s quality-growth tilt.

See also

External references

References

  1. PPFAS Mutual Fund factsheet for May 2026.
  2. Motilal Oswal Mutual Fund factsheets.
  3. AMFI monthly AUM data.
  4. PPFCF Scheme Information Document.
  5. Motilal Oswal Focused 25 Fund Scheme Information Document.

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