IGI Logo

Motilal Oswal Mutual Fund (’MOMF’) has announced the launch of its latest new fund offer “Motilal Oswal BSE 1000 Index Fund”. The fund is an open-ended fund replicating/tracking the BSE 1000 Total Return Index, India’s First Index fund tracking BSE 1000 Total Return Index, representing top 1000 listed companies - offering a wide market representation within a single index.

Motilal Oswal BSE 1000 Index Fund provides broad-based exposure to India’s equity markets by tracking the BSE 1000 Total Return Index, which covers approximately 94% of the country’s listed market capitalization. The index includes companies across large, mid, small, and micro-cap segments, representing diverse sectors and industries -from traditional industries to cutting-edge technology.

It offers exposure to a mix of established market leaders and emerging companies across 22 sectors, with the top-10 stock weight capped at ~33%, thereby helping to reduce concentration risk. The index also includes micro-cap companies, whose market capitalization and liquidity have grown approximately 5× and 14× respectively over the past five years. All within a passive, free-float weighted structure with semiannual rebalancing.

Key Fund Details:

NFO Period: June 5, 2025 to June 19, 2025

Investment Objective: The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by BSE 1000, subject to tracking error. However, there can be no assurance or guarantee that the investment objectives of the scheme will be achieved.

Benchmark: BSE 1000 Total Return Index

Investor Profile: This product is suitable for investors who are seeking long-term capital growth and return that corresponds to the BSE 1000 Total Return Index, subject to tracking error.

Minimum application:

During the NFO and ongoing Bases:

For Lump sum: Rs. 500 and multiples of Rs. 1 thereafter

For the Systematic Investment Plan (SIP), the minimum instalment amount, frequency, number of instalments, and choice of SIP date/day are different and as specified in the Scheme Information Document

Exit load:

1 % - If redeemed on or before 15 days from the allotment.

Nil - thereafter

According to MOAMCs internal research, India is expected to continue on a strong growth trajectory, supported by strong fundamentals, supportive policies, and robust domestic demand. The International Monetary Fund (‘IMF’) projects India’s GDP growth at 6.2% in 2025 and 6.3% in 2026 economies. This growth is aligned with India’s “Viksit Bharat 2047” vision, which aims to transform the country into a fully developed, high-income nation by 2047, with a targeted GDP of $23–$35 trillion and per capita income of $15,000–$20,000. As India progresses in areas like technology, manufacturing, energy, and infrastructure, opportunities are likely to arise across multiple sectors. A diversified portfolio like the BSE 1000, encompassing a wide range of listed companies, offers investors a structured way to participate in this evolving growth landscape.

Pratik Oswal, Chief of– Passive Business, Motilal Oswal Asset Management Company (‘MOAMC’):

“We are proud to launch India’s first index fund tracking the BSE 1000 Total Return Index, giving investors access to India’s largest and most inclusive equity index. This fund aims to captures the performance of 1,000 companies spanning large, mid, small, and micro-cap companies across 22 sectors. It provides a diversified exposure to India’s corporate sector and is a natural evolution for investors seeking a passive investment option. As pioneers in passive investing, our goal is to offer simple, low-cost, and scalable investment options, and this launch aligns with that objective.”

Prateek Agrawal, MD & CEO, Motilal Oswal Asset Management Company (‘MOAMC’):

“India’s growth story is gaining real momentum, fueled by strong domestic demand, policy reforms, and growing confidence in capital markets. As growth managers, we focus on identifying long-term structural trends and building portfolios that capitalise on India’s evolving economic landscape. The Motilal Oswal BSE 1000 Index Fund is an extension of our philosophy, offering investors access to a diverse range of listed companies in India across various sectors and market capitalisations. It is a simple, yet effective way to participate in India’s long-term growth through a diversified and resilient framework.”

Ashutosh Singh, Managing Director & CEO of Asia Index, added “At Asia Index Pvt. Ltd., we continue to develop market indices to reflect evolving nature of the capital market landscape and meet the changing needs of multiple stakeholders. BSE 1000, the 1st such Index, is a step towards recognizing the deepening capital market in the country as this index is designed to reflect the diversity and dynamism of our corporate sector representing industry leaders as well as emerging businesses.

We congratulate Motilal Oswal Asset Management Company (‘MOAMC’) on the launch of Motilal Oswal BSE 1000 Index Fund benchmarked to BSE 1000 Total Return Index. This initiative aims to enhance retail and institutional investor access to a broad-based representation of India’s equity markets, as the index covers ~94% of the listed space”

The fund will be managed by Mr. Swapnil Mayekar (Fund Manager – Equity component), Mr. Dishant Mehta (Associate Fund Manager-Equity Component) and Mr. Rakesh Shetty (Fund Manager - Debt Component).

The above Product labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.

Above views are of the author and not of the website kindly read disclaimer