The Motilal Oswal Multi Factor Passive Fund of Funds equally allocates 25% each to Momentum, Quality, Low Volatility and Value factors, with quarterly reviews and disciplined rebalancing.
Motilal Oswal Mutual Fund on Thursday launched the Motilal Oswal Multi Factor Passive Fund of Funds, an open-ended scheme that invests in passively managed, factor-based ETFs and index funds. The New Fund Offer opens February 20 and closes March 6, 2026, with a minimum application amount of ₹500.
EQUAL FACTOR STRATEGY
The fund allocates its portfolio equally across four investment factors: Momentum (Nifty 500 Momentum 50), Quality (Nifty 500 Quality 50), Low Volatility (BSE Low Volatility), and Value (BSE Enhanced Value), each at 25 per cent. Allocations are reviewed quarterly and rebalanced only when any factor drifts beyond ±5 per cent from its target weight, removing the need for discretionary timing calls.
The rationale behind the equal-weight structure is factor rotation: no single factor consistently leads the market across cycles. According to MOAMC’s internal research, Momentum tends to outperform during bull runs, Value during recoveries, and Quality and Low Volatility during market downturns. By spreading exposure across all four, the fund aims to reduce dependence on predicting which factor will lead at any given time.
BENCHMARK & FUND DETAILS
The scheme will be benchmarked against the Nifty 500 Total Return Index. It carries an exit load of 1 per cent if redeemed within 15 days of allotment, and a nil exit load thereafter. The fund will be managed by Swapnil Mayekar and Dishant Mehta for the equity component, and by Rakesh Shetty for the debt component.
Pratik Oswal, Chief of Business – Passive Funds at MOAMC, described the fund as “transparent and cost-efficient,” designed to provide diversified factor exposure within a structured framework. Investors can subscribe through mutual fund distributors, online platforms, or the fund house’s website.
Published on February 19, 2026