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Motilal Oswal Nifty 500 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

  • September 16, 2026
  • Posted by: Chaitanya Auti
  • Category: Mutual Funds
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Motilal Oswal Nifty 500 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Motilal Oswal Nifty 500 Index Fund Direct Growth Plan had a NAV of ₹26.2886 as of 15 Sep 2026 and an AUM of ₹3,195 Cr. Its 1-year, 3-year and 5-year returns are -2.39%, 9.12% and 9.15%, and the scheme is tagged High Risk. Our view is that it fits investors who want broad-market index exposure and can tolerate short-term swings, even though the recent 1-year stretch has been weaker than its longer run.

The fund has delivered steadier medium- to long-term compounding than its latest 1-year figure suggests, but it still carries the full ups and downs of equity markets. With a low expense ratio and a diversified portfolio led by large financials, it may suit a patient investor who is comfortable with market-linked volatility and is looking for long-horizon participation rather than defensive stability.

Table of Contents

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  • Quick facts
  • Performance
  • Should you BUY or HOLD Motilal Oswal Nifty 500 Index?
  • Peer comparison
  • Portfolio: where your money goes
  • Who should invest
  • Tax and exit load
  • Frequently asked questions
  • Bottom line
  • Explore mutual funds with Univest
  • RIA disclosure

Quick facts

Particular Details
NAV ₹26.2886 as of 15 Sep 2026
AUM ₹3,195 Cr
Expense Ratio 0.17%
Launch Date 06 Sep 2019
Min SIP ₹500
Risk Category High Risk
Benchmark Nifty 50
Fund Category Index Funds
Exit Load 1% on or before 15D, Nil after 15D
Fund Managers Swapnil P Mayekar, Dishant Mehta, Rakesh Shetty

The fund is managed by Swapnil P Mayekar, Dishant Mehta and Rakesh Shetty.

Source data date: as of 15 Sep 2026

Performance

Period Fund return Benchmark return
1M -4.58% -4.81%
3M -1.85% -3.63%
1Y -2.39% -8.27%
3Y 9.12% 5.59%
5Y 9.15% 5.58%

In the near term, the fund has been under pressure, but it still did better than the benchmark over 1M, 3M and 1Y. That tells us the portfolio has not been immune to weak market phases, yet it has held up better than the benchmark during the latest drawdown.

The longer view is more constructive. The 3-year and 5-year returns are both above the benchmark, which suggests that the index fund has captured more of the market’s recovery and compound growth over a full cycle than the benchmark figure shown here.

The contrast between the latest 1-year return and the 3-year and 5-year numbers matters. It shows that the fund’s short-term path can be choppy even when the longer-term compounding trend is positive, which is typical of equity index investing rather than capital-protection products.

That pattern also appears in the day-to-day movement over the recent periods, where weakness and recovery have alternated rather than forming a straight line. For investors, the important point is that short-term declines do not by themselves change the longer-run story, but they do confirm that the fund remains exposed to market volatility.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Motilal Oswal Nifty 500 Index?

A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

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Peer comparison

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

Fund 1Y return 3Y return 5Y return
Motilal Oswal Nifty 500 Index Fund Direct Growth Plan -2.39% 9.12% 9.15%
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan 32.61% 29.92% Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan 25.91% Data not available Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan 21.71% Data not available Data not available
Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan 20.15% Data not available Data not available
ICICI Pru Nifty Pharma Index Fund Direct Growth Plan 18.11% 18.92% Data not available

On the latest 1-year figure, this fund trails the strongest peer returns in the table by a wide margin, although those peers are tied to very different themes. The more useful comparison is that this fund’s 3-year and 5-year returns are solid, while several peers do not have comparable medium- or long-term numbers available here.

That creates two different stories: the short-term story is clearly weaker than the stand-out peer numbers, while the longer-term story is respectable and more balanced. Against the peer set shown, the fund looks steadier over time than the one-year headline suggests, but it does not match the stronger one-year momentum delivered by some theme-focused funds.

Source data date: as of 15 Sep 2026

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Portfolio: where your money goes

Holding Sector Weight
HDFC Bank Limited Bank 5.42%
ICICI Bank Limited Bank 5.2%
Reliance Industries Limited Crude Oil 4.3%
Bharti Airtel Limited Telecom 2.75%
Larsen & Toubro Limited Infrastructure 2.36%
State Bank of India Bank 2.19%
Infosys Limited IT 1.98%
Axis Bank Limited Bank 1.86%
Kotak Mahindra Bank Ltd Bank 1.54%
Mahindra & Mahindra Limited Automobile & Ancillaries 1.46%

The largest holding is HDFC Bank Limited at 5.42%, so no single stock dominates the portfolio on its own. The move from the first holding to the tenth is gradual rather than abrupt, which suggests the fund spreads its weight across several large names instead of leaning too heavily on one position.

The top ten holdings together account for approximately 29.06% of the portfolio, and that points to a meaningful but not extreme concentration in the visible list. Because the portfolio discloses 39 holdings in total, the remaining exposure is likely to be distributed across a longer tail of smaller positions, which may reduce reliance on any one stock while still keeping the fund equity-heavy.

For investors, that structure may provide broad market participation with a strong tilt toward large financials at the top. The holding mix may also mean that the fund’s day-to-day behaviour is influenced more by large-cap market moves than by a narrow set of stocks.

To see all holdings, visit the Motilal Oswal Nifty 500 Index Fund Direct Growth Plan page

Source data date: as of 15 Sep 2026

Who should invest

This fund suits investors who are comfortable with High Risk equity exposure and who can stay invested through short-term weakness. The latest 1-year return was negative, but the 3-year and 5-year returns are positive and better than the benchmark shown here, which makes a longer horizon more relevant than a short holding period.

The main trade-off is simple: you get broad-market participation and low-cost index exposure, but you must accept equity volatility and periods when performance turns negative. The portfolio’s large-bank and large-cap tilt may appeal to investors who prefer established businesses in the index mix, while still understanding that market swings can be sharp.

Tax and exit load

Holding period Tax rate Description
Units held less than 1 year 20% Short-term capital gains tax
Units held more than 1 year 12.5% Long-term capital gains tax

Exit load: 1% if units are sold on or before 15 days; nil after 15 days.

Source data date: as of 15 Sep 2026

Frequently asked questions

What is the current NAV of Motilal Oswal Nifty 500 Index Fund Direct Growth Plan?
The current NAV is ₹26.2886 as of 15 Sep 2026.

How has Motilal Oswal Nifty 500 Index Fund Direct Growth Plan performed over 1 year, 3 years and 5 years?
Its returns are -2.39% over 1 year, 9.12% over 3 years and 9.15% over 5 years.

How does this fund compare with its benchmark?
It has outperformed the benchmark over 1M, 3M, 1Y, 3Y and 5Y. The gap is especially clear over 3 years and 5 years, where the fund’s returns are above the benchmark figures shown here.

How does the fund compare with peer funds on recent returns?
Its 1-year return is lower than the strongest peer figures shown in the comparison table, but its 3-year and 5-year numbers are more settled and easier to compare with the longer-term peers that have data available.

What is the minimum SIP amount?
The minimum SIP amount is ₹500.

Who manages the fund and what is the exit load?
The fund is managed by Swapnil P Mayekar, Dishant Mehta and Rakesh Shetty. The exit load is 1% if units are sold on or before 15 days and nil after 15 days.

Bottom line

This fund’s latest 1-year return is weaker than its 3-year and 5-year history, but the longer-run numbers remain positive and ahead of the benchmark shown here. Against the peer set, its short-term figure is softer than the strongest recent performers, while its longer-term profile is more measured and consistent. The High Risk label still applies, and the portfolio’s large-bank tilt at the top means the fund will likely move with broad equity sentiment. For a patient investor who wants low-cost index exposure and can accept market swings, the longer-term picture is more relevant than the latest dip.

Published on 16 September 2026 at 1:32 PM IST

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RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.



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