Motilal Oswal Nifty Midcap 150 Index Fund Direct Growth

Motilal Oswal Nifty Midcap 150 Index Fund is a passive mutual fund that tracks the Nifty Midcap 150 Index. Nifty Midcap 150 Index includes companies ranking from 101st to 250th. These 150 companies represent emerging businesses that can potentially become large-cap stocks.

The fund offers exposure to a diversified set of midcap companies across sectors such as financial services, capital goods, healthcare, consumer products, and more. The objective of the fund is not to outperform, but to match the returns of the fund to the index as closely as possible.

Investment Strategy 

Motilal Oswal Midcap Index Fund follows a passive investment approach, mirroring the Nifty Midcap 150 Index by investing in the same stocks with identical weightages. This allows investors to gain exposure to India’s emerging mid-sized companies and participate in the broader market growth. The fund aims to keep tracking error to a minimum, ensuring alignment with the index performance.

Taxation On Motilal Oswal Nifty Midcap 150 Index Fund

Tax on your gains from the Nifty Midcap 150 Index Fund depends on how long you have held the fund. All equity mutual funds sold within 12 months are considered Short-term Capital Gain (STCG), and investments sold after 12 months are considered Long-term Capital Gain (LTCG). The taxes are as follows:

• Long-term Capital Gain: Exemption of up to ₹1,25,000 and then 12.5%
• Short-term Capital Gain: 20% 

Who Invests In Motilal Oswal Nifty Midcap 150 Index Fund?

Investors looking to benefit from mid-cap companies' growth can invest in the Motilal Oswal Midcap fund. Considering mid-cap stocks are more volatile than large caps, the fund may experience market fluctuations. Investors with a moderate to high-risk appetite can invest in this fund.

Allocation & Historical Returns

Currently, the fund's portfolio comprises 3.0% small-cap stocks, 5.01% large-cap stocks, and 91.94% mid-cap stocks.

With an AUM of ₹2126.0 crores, Motilal Oswal Nifty Midcap 150 Index Fund Direct Growth generated a return of 10.8% in 1 year, 27.0% in 3 years, 33.2% in 5 years. while its benchmark index (Nifty Midcap 150) generated 13.0% in 1 year, 16.4% in 3 years, and 22.1% in 5 years.