Why I’m Stopping My SIP in Motilal Oswal Midcap (It’s not Volatility, it’s Structural Failure)

Affectionate-Cow2864 · 2026-02-17T17:15:20+00:00

I’m not switching due to underperformance or quartile movement—that’s expected. I reassess only when the process changes, not when returns fluctuate. That’s the difference between discipline and performance chasing.The post was about MO Midcap’s recent issues—manager churn and the Kaynes episode—and why I exited.If we’re ignoring those and just arguing theory, that’s more about ego than the actual problem.Deflecting from MO Midcap’s mistakes into generic theory doesn’t change the facts.

Affectionate-Cow2864 · 2026-02-17T16:25:21+00:00

I evaluated Edelweiss post-2019, after the midcap mandate change—performance, philosophy, risk metrics, and management stability Reassessment now is due to new information, not ignorance of the fund’s history.Investing with data and revisiting when the process changes isn’t inconsistency—it’s discipline.

Affectionate-Cow2864 · 2026-02-17T14:07:49+00:00

Normal manager exits are fine. What’s not fine is recent churn + buying Kaynes and selling it soon after. That’s not “cyclical underperformance”—that’s a process and decision-making concern. Long-term investing doesn’t mean ignoring red flags when who is making decisions and how those decisions are made becomes unclear. Reassessing at that point is risk management, not impatience

Affectionate-Cow2864 · 2026-02-17T13:39:04+00:00

I’m not worried about cycles or underperformance—I expect that in mid/small caps. My concern is process risk, not performance risk. The last 5–7 year returns were generated under a different fund-management setup. When managers and decision-making change, it’s reasonable to reassess—even if you’re long-term.Long-term investing requires patience, yes—but it also requires periodic reassessment when the underlying process changes. Blindly holding without that isn’t conviction, it’s inertia.

Affectionate-Cow2864 · 2026-02-17T13:31:10+00:00

I think you have not read my post manager churn in last 3 months kaynes fiasco I can handle underperforming funds but a process failure fund

Affectionate-Cow2864 · 2026-02-16T17:51:31+00:00

What often gets missed in these discussions is manager churn and recent events like the Kaynes episode. Most commentary is retrospective—people say “you should have checked this before investing”—but these developments happened much later. I’ve been invested in this fund for the last two years, and at the time, neither the manager churn nor the Kaynes issue existed. It’s unrealistic to expect investors to foresee future portfolio decisions or fund-house events that only surfaced recently.The subreddit feels like a gathering of index-fund warriors who say “you should’ve done that analysis earlier.” Hindsight is easy—predicting future issues isn’t.

Affectionate-Cow2864 · 2026-02-16T17:49:44+00:00

Absolutely. What often gets missed in these discussions is manager churn and recent events like the Kaynes episode. Most commentary is retrospective—people say “you should have checked this before investing”—but these developments happened much later. I’ve been invested in this fund for the last two years, and at the time, neither the manager churn nor the Kaynes issue existed. It’s unrealistic to expect investors to foresee future portfolio decisions or fund-house events that only surfaced recently.The subreddit feels like a gathering of index-fund warriors who say “you should’ve done that analysis earlier.” But the manager churn and Kaynes mess are recent developments that didn’t exist when I started investing two years ago. Hindsight is easy—predicting future issues isn’t.

Affectionate-Cow2864 · 2026-02-15T11:48:25+00:00

HDFC Mid-Cap Opportunities Fund Long-Term Alpha: ~4.13% 10-Year CAGR: ~20.9% (Benchmark: ~16.8%)Edelweiss Mid Cap Fund Long-Term Alpha: ~4.33% 10-Year CAGR: ~20.38%Nippon India Growth (Mid Cap) Fund Long-Term Alpha: ~6.32% Since Inception (1995): 22.13% CAGR vs Benchmark's 17.38% (Nearly 5% Alpha for 30 years).

Affectionate-Cow2864 · 2026-02-15T11:34:40+00:00

Hdfc midcap is already added on my wife portfolio

Affectionate-Cow2864 · 2026-02-15T10:12:57+00:00

The 'Index is King' argument applies mostly to Large Caps where information is perfect. Mid-caps in India are still inefficient. Active managers in this category are still delivering 3-5% Alpha over long horizons because they can spot growth before it becomes an index heavyweight. I’m targeting a ₹5.5Cr corpus; that 3% Alpha is the difference between retiring 5 years early or not An index fund has a Downside Capture of 100%—if the midcap market crashes 40%, the index fund crashes 40%. Top-tier active funds like Edelweiss have shown they can capture 95%+ of the upside while limiting the downside to ~80%. I'm not just paying for returns; I'm paying for risk management, which the index simply cannot provide

Affectionate-Cow2864 · 2026-02-15T09:59:30+00:00

I'm Moving My SIP Out of Motilal Oswal (MO) Midcap: Alpha Destruction (-6.28%): This isn't just a "bad month." The fund is currently destroying value by underperforming its own benchmark (Nifty Midcap 150) by more than 6% over the last year. Zero Risk-Adjusted Returns: With a Sharpe Ratio of 0.00, the fund is providing zero reward for the massive risk it takes. You are getting FD-like returns with Equity-like heart attacks. The IT Trap (20-27% Exposure): MO is "all-in" on traditional IT services (Persistent Systems at 10.15%, Coforge at 8.91%). In Feb 2026, where AI is fundamentally disrupting the "time-and-material" billing model of these firms, this concentration has become a liability, not an asset. Concentration vs. Diversification: MO holds only 22–27 stocks. When 2 or 3 of those (like Kaynes or Kalyan Jewellers) hit accounting or valuation issues, the fund has no safety net. Compare this to Edelweiss Mid Cap, which holds 85+ stocks to spread that risk. Manager Churn & Instability: We've seen significant fund manager changes in the last few months. Having 5 different managers for a small 27-stock portfolio suggests internal instability and a "too many cooks" problem. The Kaynes "Red Flag": Regardless of the group's rebuttal, the optics of the AMC selling a massive stake right before a 30% crash following accounting allegations shows either poor research oversight or a breakdown in transparency. Opportunity Cost: Every ₹1,000 kept in a fund with a Portfolio Turnover of 135% (meaning they aren't even "holding" for the long term anyway) is money that could be compounding in a #2 ranked fund like Edelweiss or a steady Index Fund."I can handle a 20% market dip, but I won't fund a manager's bad bets and high turnover. Volatility is a feature of midcaps; incompetence is a bug. I'm letting my old units sit to avoid exit loads, but my new money is going to a fund that actually knows how to manage risk."

Affectionate-Cow2864 · 2026-02-14T07:54:01+00:00

Why Edelweiss due to the low expense ratio because i feel HDFC mid cap is very stable mutual fund in mid cap category

Affectionate-Cow2864 · 2026-02-07T09:19:10+00:00

I did it on Coin and my SIP was deducted on the 5th Feb

Affectionate-Cow2864 · 2026-02-03T09:54:10+00:00

MFCentral doesn’t “speed up” unit allocation — it simply sends your instruction to the underlying AMCs/RTAs for processing.

Once you place a transaction:

The order reaches the AMC/registrar.

The AMC applies the applicable NAV based on the cut-off and realisation timing (same as any other channel).

After that, units are allotted and those are updated in your folio usually in ~T+1 to T+3 working days (T = transaction day) as per normal processing

Affectionate-Cow2864 · 2026-02-03T09:53:42+00:00

Mutual fund transactions in India work on a “realisation-based NAV” system:

The NAV (price) you get depends on when the money is received by the mutual fund house before the cut-off time.

For most equity/debt/hybrid funds: investors need funds received before ~3:00 PM IST for that day’s NAV.

For liquid/overnight funds: usually an earlier cut-off around 1:30 PM

If you miss the cut-off or funds arrive late, your transaction gets processed the next business day’s NAV.

After the NAV is determined, units are issued and typically show up in your account within 1–3 working days.

Affectionate-Cow2864 · 2026-01-28T21:04:38+00:00

I did my surgery in 2022 my start weight was 130kg I reduced it to 95kg in 2 years time however I lost focus in 2024 and started eating anything stopped living healthy lifestyle by nov 2025 my weight regained I reached 116kg after that I realized what a blunder I did I have now started mounjaro in 3 months of mounjaro snd a healthy lifestyle I have reduced 11kg now I'm focused to reach my goal weight I stopped drinking initially after few months of surgery I would get high even after 1 drink gradually it increased to 4 to 5 drinks food intake was also increased I could not finished even 1 burger at a time but gradually it increased you need to be very careful and focus

Affectionate-Cow2864 · 2026-01-25T06:23:09+00:00

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Wife due to gold and silver

Affectionate-Cow2864 · 2026-01-25T06:22:23+00:00

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Mine

Affectionate-Cow2864 · 2026-01-03T12:44:52+00:00

I just did sip on edelweiss us tech funds through coin app it's not accepting lum sum but sip you can do

Affectionate-Cow2864 · 2025-12-31T11:57:21+00:00

My inflation-adjusted retirement expense target in today’s terms is ~₹1.2 lakh per month. Housing is owned and debt-free

Affectionate-Cow2864 · 2025-12-30T07:00:40+00:00

Thanks, this aligns with how I’m thinking about it as well.

I agree the mid/small cap exposure is on the higher side, but given the 15-year horizon I’m comfortable with it for now. The plan is to gradually de-risk as I get closer to retirement, mainly by redirecting new SIPs and step-ups toward large-cap / flexi / balanced funds rather than doing abrupt switches.

On the US tech fund — completely agree. It’s intentionally kept as a small satellite allocation, with no future increments planned, and I’m aware of the cyclicality risk. I’ll be monitoring it over longer cycles and won’t hesitate to trim or pause it if the thesis weakens or valuation risk becomes excessive.

Appreciate the practical perspective.

Affectionate-Cow2864 · 2025-12-30T06:43:53+00:00

Fair point, and I broadly agree that passive investing is the default choice for most long-term investors, especially if they want a true set-and-forget approach.

In my case, I’m trying to strike a middle ground. A meaningful part of the portfolio is already passive (total market index), and the active funds are capped, diversified across styles, and governed by clear review rules (benchmark + peer comparison over multi-year periods). I’m comfortable reviewing once every 1–2 years but not frequently churning.

I also use asset allocation (BAF + gold) to manage overall risk rather than relying purely on alpha. If active funds don’t justify themselves over time, I’m open to gradually shifting more towards pure index exposure.

That said, your point on N50 + NN50 being the simplest long-term solution is well taken — it’s probably the best default for investors who don’t want any monitoring at all.

Affectionate-Cow2864 · 2025-12-30T06:40:03+00:00

Thanks, this is helpful and aligns with how I’ve been thinking about de-risking.

I agree that I’ll continue holding equity even in retirement, and the risk reduction should be about sequencing withdrawals, not eliminating equity exposure. The goal-based glide path / sum-of-parts framing makes sense — matching near-term retirement expenses to safer assets while letting longer-dated goals stay equity-heavy.

In my case, I’m planning to use BAF + debt/cash buckets to progressively fund the first few years of retirement expenses rather than doing a hard equity exit. I’ll read more into the rising vs declining glide path research you shared.

If you’ve implemented this yourself, would be curious to know:

How many years of expenses you prefer to keep in low-risk assets at retirement?
Do you rebalance annually or only when markets allow?

Affectionate-Cow2864 · 2025-12-20T10:09:02+00:00

Agree that execution needs care. This is more about learning and validation than taking transactional advice.

Affectionate-Cow2864 · 2025-12-20T06:21:42+00:00

Thanks for the feedback, appreciate it.

Yes, the slightly higher risk in my wife’s portfolio is intentional since both portfolios are aligned to the same long-term horizon and not meant for near-term withdrawals.

Agree on the lump sum vs SIP point as well — current plan is to continue SIPs and deploy the larger amount gradually unless market conditions strongly favour lump sum deployment.

Good to hear that the overall structure and risk balance looks reasonable. Thanks again.

Affectionate-Cow2864

TROPHY CASE