NFO deadline alert! New Motilal Oswal Nifty Midcap150 Index Fund closes next week — Date, allocation, holding details

Motilal Oswal Mutual Fund (MOMF) last week announced the launch of its new fund offer (NFO), ‘Motilal Oswal Nifty Midcap150 Plus 8–13 Yr G-Sec 70:30 Index Fund’, an open-ended fund tracking the Nifty Midcap150 index, the company said.

The hybrid scheme brings together the growth potential of Midcaps and the stability of Government Securities (G-Secs), the release added.

New Motilal Oswal MF index fund: NFO deadline alert

• The fund combines two asset classes together in a single, rules-based portfolio with 70% equity and 30% debt through two underlying indices: 70% Nifty Midcap 150 Index and 30% Nifty 8–13 Yr G-Sec Index.

“Midcap companies are in the growth phase of their lifecycle, while government securities carry zero credit risk. The fund is rebalanced monthly to maintain the 70:30 allocation — buying more of what has fallen and selling some of what has risen — helping maintain the pre-defined allocation without requiring market prediction or active shift between assets,” according to the statement.

• For the equity component, the Nifty Midcap150 Index, comprises the 150 companies ranked 101–250 by full market capitalisation from the Nifty 500 Index, weighted by free-float market capitalisation and reconstituted semi-annually in March and September.
• For the debt component, It comprises top three liquid G-Secs based on turnover during the month with 8–13 years of residual maturity and more than ₹5,000 crore outstanding, weighted 60% by outstanding amount and 40% by liquidity, and reconstituted monthly as per Index Methodology.

What has been returns from the fund?

According to Motilal Oswal Asset Management Company (MOAMC), the Nifty Midcap150 Plus 8–13 Yr G-Sec 70:30 Index aka the “Hybrid Index”, has delivered:

• Annualised returns (CAGR) of 12.2% over 5 years, 14.0% over 10 years and 15.1% over 15 years, compared to 6.4%, 11.5% and 12.0% respectively for the Nifty 50 TRI.
• This has come with lower volatility — 11.9%, 12.4% and 12.2% for the Hybrid Index over the same period, against 13.8%, 16.1% and 16.1% for the Nifty 50 TRI.
• The Hybrid Index outperformed the Nifty 50 in 10 of 15 calendar-years (2012 to 2026 YTD) and in 80% of rolling 5-year periods, with a maximum drawdown of -27.4% compared to -38.3% for the Nifty 50 Index.

Key fund details for investors

• NFO Period: October 12 to October 26, 2026
• Investment Objective: The investment objective of the scheme is to provide returns that correspond to the performance of the Nifty Midcap150 Plus 8–13 Yr G-Sec 70:30 Index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved, it added.
• Benchmark: Nifty Midcap150 Plus 8–13 Yr G-Sec 70:30 Index
• Product Suitability: This product is suitable for investors seeking returns that correspond to the performance of the Nifty Midcap150 Plus 8–13 Yr G-Sec 70:30 Index, subject to tracking error, and long-term capital growth, the release added.
• Minimum application: During NFO and ongoing basis for lumpsum — ₹500 and in multiples of ₹1 thereafter; for multiple SIP frequency is available.
• Exit load: 1% if redeemed on or before 15 days from the allotment; O% if redeemed after 15 days from the allotment.
• The risk of the scheme is ‘Very High Risk’, assigned based on internal assessment of the scheme characteristics or model portfolio and may vary post NFO when the actual investments are made, the statement added.
• The fund will be managed by Swapnil Mayekar (Fund Manager — for Equity component) and Dishant Mehta (Associate Fund Manager — for Equity component) and by Rakesh Shetty (Fund Manager — for the debt component).

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