Motilal Oswal Nifty Midcap 150 Index Fund

Diversified

Equity

India Growth

Mid Cap

Others

Empty

1–7 yearsInvestment Horizon

Empty

What This Strategy Does

Motilal Oswal Nifty Midcap 150 Idx RegGr is an equity fund which captures India's ₹25 trillion mid-cap opportunity through index replication, deploying capital across industrials, financials, and consumer sectors to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Midcap Exposure

The fund's disciplined replication of the Nifty Midcap 150 Index provides consistent exposure to the midcap segment, capturing the earnings growth potential of this market capitalization range.

Sector-Neutral Approach

With a sector-neutral approach mirroring the index composition, the fund offers a diversified portfolio across sectors like financials, industrials, and consumer cyclicals, reflecting the broad midcap opportunity set.

Volatility Participation

The fund's historical volatility of 19.5% aligns with expectations for the midcap space, allowing investors to participate in the higher growth potential while managing risk through a rules-based indexing strategy.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

0.0% AnnuallyAlpha

+21.8% vs +11.6% benchmarkSince Inception

+14.2% vs +6.0% benchmark3Y Annualized

+15.6% vs +6.3% benchmark5Y Annualized

Motilal Oswal Nifty Midcap 150 Index Fund

Benchmark Index

Benchmark Performance Comparison

Motilal Oswal Nifty Midcap 150 Index Fund

NIFTY 50

Risk Profile

Standard Deviation20.9%

Maximum Drawdown-20.6% | Oct 2024

Sharpe Ratio0.30

Detailed Risks

Market Risk

Potential economic slowdown could dampen consumer demand, impacting mid-cap earnings.

Liquidity Risk

Volatility spikes could strain liquidity in mid-cap holdings, hindering rebalancing.

Concentration Risk

Concentrated mid-cap exposure amplifies risks from sector-specific headwinds or shocks.

Specific Strategy Risk

Regulatory changes targeting specific sectors could disproportionately impact strategy holdings.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides exposure to India's dynamic mid-cap segment—companies poised for rapid growth as they transition from niche players to industry leaders. This segment captures the entrepreneurial energy driving India's economic expansion while offering diversification benefits relative to large caps.

Broader Market View

Market Outlook

Equity markets appear to be in the early stages of a recovery phase, offering an attractive entry point as consumption and earnings normalize. Sectors geared towards domestic demand, such as consumer, financials and industrials, stand to benefit from this environment, though margin pressures and cyclicality pose risks.

Why This Strategy is Attractive Now

This strategy appears well-positioned for the current market landscape with exposure across consumer cyclicals, defensives, financials and technology. The portfolio's diversification across market leaders and approximately 70 holdings could provide balance between growth and stability, while its moderate beta suggests a risk-adjusted stance aligned with the cycle.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, robust profitability, and consistent earnings growth across market cycles.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach focused on companies with pricing power, recurring revenues, and strong balance sheets can provide downside resilience while participating in secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to source investment candidates from across market capitalizations and sectors, with a tilt towards companies demonstrating sustainable competitive advantages, healthy profitability, and strong cash flow generation. Selection: The selection process suggests a preference for businesses with attractive growth runways, disciplined capital allocation, and reasonable valuations relative to long-term earnings prospects. Financial strength and corporate governance are likely key considerations. Construction: Portfolio construction is consistent with a focus on risk management through diversification across sectors and individual positions. The strategy appears to balance conviction in top holdings with a diversified basket of qualifying businesses.

Portfolio Holdings Overview

SectoralAllocation

Services13.73%

Capital Goods26.47%

Energy & Infra4.78%

Utilities3.4%

Financial Services26.79%

Consumers16.25%

Technology8.59%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

BSE LtdFinancial Services3.80%

Multi Commodity Exchange of India LtdFinancial Services1.94%

The Federal Bank LtdFinancial Services1.80%

Suzlon Energy LtdCapital Goods1.72%

Hero MotoCorp LtdConsumers1.69%

IndusInd Bank LtdFinancial Services1.54%

AU Small Finance Bank LtdFinancial Services1.47%

PB Fintech LtdFinancial Services1.45%

Lupin LtdServices1.43%

GE Vernova T&D India LtdCapital Goods1.41%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Rakesh Shetty

Mr. Rakesh Shetty has experience of 3 years. Manages 275 funds at Motilal Oswal Asset Management Company Limited - Portfolio Managers with an AUM of approximately ₹10,161 Cr

26 years

Combined Team Experience

₹ 29,325 Cr

Assets Under Management

Dishant Mehta

Co-Portfolio Manager

Dishant Mehta has experience of 2 years. Manages 91 funds at Motilal Oswal Asset Management Company Limited - Portfolio Managers with an AUM of approximately ₹9,582 Cr

Swapnil Mayekar

Co-Portfolio Manager

Mr. Swapnil Mayekar has experience of 21 years. Manages 213 funds at Motilal Oswal Asset Management Company Limited - Portfolio Managers with an AUM of approximately ₹9,582 Cr Holds a M.com degree.

CW Expert Take

Motilal Oswal's Nifty Midcap 150 Index Fund offers exposure to the mid-cap segment of the Indian equity market. The fund passively tracks the Nifty Midcap 150 Index, providing diversified access to companies ranked 101-250 by market capitalization. With a focus on replicating index performance, the strategy maintains sector allocations aligned with the benchmark while minimizing tracking error.

Investment Philosophy & Approach

Disciplined Approach

Motilal Oswal adheres to a disciplined, rules-based investment approach.

Index Replication

The fund aims to replicate the Nifty Midcap 150 Index.

Risk Management

Risk management through diversification across mid-cap stocks.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)1%

Regulatory & Tax Information

INF247L01908

ISIN

DailyDealing Frequency

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)