Personal Finance
NFO Alert: Motilal Oswal Mutual Fund has launched the New Fund Offer (NFO) for the ‘Motilal Oswal BSE Midcap 150 Momentum 30 Index Fund’. It is an open-ended index scheme designed to replicate the performance of the BSE Midcap 150 Momentum 30 Index.
What is Motilal Oswal BSE Midcap 150 Momentum 30 Index Fund ?
The recently launched NFO opened for subscription on Monday, July 3. The subscription window will remain open till July 17, 2026.
It is an open-ended index fund that tracks the BSE Midcap 15- Momentum 30 Total Return Index. Rather than outperform the index, it aims to replicate, as closely as possible, the BSE Midcap 150 Momentum 30 Total Return Index.
The fund will invest in thirty companies selected from the broader BSE Midcap 150 universe. The fund follows the rule-based momentum strategy rather than active stock-picking by fund manager.
How The NFO Will Work?
The fund will select stocks based on their 12-month price performance, adjusted for volatility. Which means that index does not simply chose the fastest-rising stock, but also considers how sharply those stocks surged over the period.
Portfolio Rebalancing Frequency
The portfolio will be rebalanced every quarter as it allows the index to add stocks showing stronger momentum and remove those where trend has weakened. For investors, the key attraction is a systematic approach that avoids discretionary calls, while still targeting companies showing relatively stronger market trends.
Motilal Oswal Mutual Fund said the scheme will aim to provide returns, before expenses, that correspond to the total returns of the BSE Midcap 150 Momentum 30 Total Return Index. However, like all index funds, returns will be subject to tracking error. The fund house has also clarified that there is no assurance the investment objective will be achieved.
Motilal Oswal BSE Midcap 150 Momentum 30 Index Fund Key Details
THe minimum amount to start investing in this NFO is Rs 500 with additional investments allowed in multiples of Re 1. The same minimum investment requirement will apply after the scheme reopens for continuous sale and repurchase.
Exit Load
The scheme comes with an exit load of 1% if the investment amount is redeemed within 15 days from the date of allotment. No exit load will be applicable if investors redeem the money after 15 days. This structure indicates that the product is not designed for very short holding periods, despite being linked to a momentum strategy.
Fund Manager
The equity portion of the NFO scheme be managed by Swapnil Mayekar, with Dishant Mehta as associate fund manager. Rakesh Shetty will manage the debt component. Since this is a passive fund, the fund management role will largely involve tracking the index efficiently and managing cash flows, rebalancing and expenses.