Investors looking for opportunities in India’s growing midcap segment now have a new option to consider.
Motilal Oswal Mutual Fund has launched the Motilal Oswal BSE Midcap 150 Momentum 30 Index Fund, an open-ended index fund designed to invest in high-performing midcap companies.
The New Fund Offer (NFO) for this scheme opened on July 3, 2026, and will remain open until July 17, 2026.
What Is Special About This Fund?
The new fund tracks the BSE Midcap 150 Momentum 30 Index, which selects stocks based on their performance over the previous 12 months while also considering risk factors.
Investing in midcap stocks can generate attractive long-term returns, but choosing the right companies at the right time is often difficult.
This fund follows a rule-based approach to identify companies with strong momentum potential.
The portfolio consists of just 30 selected midcap companies, making it a focused investment strategy.
The portfolio is reviewed and rebalanced every quarter to align with market trends and reduce exposure to weaker-performing stocks.
Strong Historical Performance
According to historical data, the BSE Midcap 150 Momentum 30 Index has delivered an average annual return of 30.46% over the last five years.
In comparison:
Nifty 50: 9.88% annual return
BSE Midcap 150: 18.31% annual return
Since this is a passive index fund, investors also benefit from a transparent and relatively low-cost investment approach.
Key Details of the New Fund Offer
NFO Period: July 3, 2026, to July 17, 2026
Investment Objective: To generate returns similar to the BSE Midcap 150 Momentum 30 Index before expenses, subject to tracking error
Benchmark: BSE Midcap 150 Momentum 30 Total Return Index
Minimum Investment: ₹500 during NFO and in multiples of ₹1 thereafter
Exit Load: 1% on withdrawals within 15 days; no charges after that
Suitable For: Investors seeking long-term capital growth through midcap and momentum investing
Why Momentum Investing Is Gaining Attention
Momentum investing focuses on companies whose stocks are already performing strongly and are expected to continue their upward trend.
India’s midcap sector has witnessed strong growth due to rising domestic demand, increased economic activity, and improving corporate earnings.
This has made momentum-based investing an attractive strategy for long-term investors.
Fund Managers and Expert View
According to Prateek Oswal of Motilal Oswal Asset Management Company, midcap companies play an important role in India’s long-term growth story, while momentum investing offers a disciplined way to participate in this growth.
The equity portion of the fund will be managed by Swapnil Mayekar and Dishant Mehta, while Rakesh Shetty will manage the debt component of the scheme.
