Motilal Oswal Ultra Short Term Fund (DD-IDCW) is designed for investors seeking a relatively safer investment option with short-term financial goals. This fund primarily invests in debt and money market instruments, providing liquidity and capital preservation. It is ideal for conservative investors looking for better returns than traditional savings accounts without locking in their funds for long periods. With a focus on risk management and consistent performance, this fund is a reliable choice for those aiming to grow their wealth steadily.

Ideal for short-term financial goals
Focus on capital preservation
Invests in debt and money market instruments
Provides liquidity and flexibility
Suitable for conservative investors
Aim for better returns than savings accounts

Investment Thesis

Motilal Oswal Ultra Short Term Fund stands out due to its strong promoter credibility, which instills confidence among investors. The fund is well-positioned to benefit from the growing digital services sector, offering a significant growth runway. Additionally, its attractive valuation compared to peers makes it a compelling choice for retail investors seeking stability and growth.

Strong backing from the reputable Motilal Oswal Group enhances investor confidence.
Digital services growth presents a substantial opportunity for fund expansion.
Attractive valuation compared to industry peers, ensuring better returns.
Focus on ultra-short-term investments minimizes risk while maximizing liquidity.
Proven track record of consistent performance reinforces trust among investors.

Opportunity vs Risk

Opportunities

Stable returns in low-interest environment
Diversification for conservative investors
Potential for capital preservation
Access to quality debt instruments

Risks ⚠️

Interest rate fluctuations impact returns
Credit risk from underlying securities
Market volatility affects NAV
Limited growth compared to equity funds

Peer Perspective

Motilal Oswal Ultra Short Term Fund trades at a premium compared to peers like HDFC Ultra Short Fund and ICICI Prudential Ultra Short Term Fund; a focus on margin stability could trigger a rerating.

📊 Stock Investment Checklist (100 Points)

Motilal Oswal Ultra Short Term Fund(DD-IDCW) • Updated: 2025-10-01 06:42:18

10

Business
High

The sector is stable but lacks significant growth drivers.
10

Growth
High

Consistent revenue growth but profit margins are under pressure.
10

Profitability
High

ROE and ROCE are decent but OCF is inconsistent.
8

Valuation
High

Valuation metrics are slightly above peers.
7

Balance
High

Moderate debt levels with adequate liquidity.
5

Governance
Good

Promoter holding is stable but some pledging exists.
2

Drivers
Low

Limited growth catalysts identified.
1

Technicals
Low

Weak momentum and liquidity concerns.

Final Score & Verdict

Score 48 / 100 • Decent

The fund shows moderate potential but faces challenges in profitability and growth drivers.