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

Motilal Oswal Manufacturing Fund Direct Growth Plan had a NAV of ₹11.9499 as of 10 Sep 2026 and an AUM of ₹699 Cr. Its 1-year, 3-year and 5-year returns are 0.86%, 0% and 0%, and the scheme sits in the High Risk category.

Our view is that the fund still looks early in its live history, with performance that has recently been steadier than the one-year headline suggests but remains well below the benchmark on a longer horizon. The portfolio is built around manufacturing-linked and industrial names, so investors need to be comfortable with a concentrated equity theme and periods of uneven relative performance.

Quick facts

Particular	Details
NAV	₹11.9499 as of 10 Sep 2026
AUM	₹699 Cr
Expense Ratio	0.86%
Launch Date	08 Aug 2024
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	1% on or before 90D, Nil after 90D
Fund Managers	Ajay Khandelwal, Atul Mehra, Bhalchandra Shinde, Rakesh Shetty

The fund is managed by Ajay Khandelwal, Atul Mehra, Bhalchandra Shinde, and Rakesh Shetty.

Source data date: as of 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-1.17%	-4.06%
3M	7.26%	1.37%
1Y	0.86%	-7.31%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The recent picture is mixed, but not weak across every timeframe. Over 1 month, the fund declined less than the benchmark, while over 3 months it moved ahead of the benchmark by a meaningful margin. That tells us the portfolio has had some recovery after a choppy patch rather than a straight-line move.

The 1-year return is still modest at 0.86%, but it is better than the benchmark’s -7.31% over the same period. That relative edge matters because it shows the fund has done a better job of protecting capital than the index during a difficult year, even if the absolute return is not strong in isolation.

For 3-year and 5-year readings, there is not enough live history to judge long-run compounding from a full-cycle perspective. The shorter-term pattern has improved from earlier softness, but it does not yet override the fact that the scheme is still young and the longer record is not available.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD Motilal Oswal Manufacturing?

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

Fund	1Y return	3Y return	5Y return
Motilal Oswal Manufacturing Fund Direct Growth Plan	0.86%	Data not available	Data not available
ICICI Pru Strategic Metal and Energy Equity FoF Direct Growth Plan	73.94%	37.12%	Data not available
Motilal Oswal Active Momentum Fund Direct Growth Plan	29.94%	Data not available	Data not available
Kotak Healthcare Fund Direct Growth Plan	29.26%	Data not available	Data not available
HDFC Pharma and Healthcare Fund Direct Growth Plan	28.3%	Data not available	Data not available
SBI Automotive Opportunities Fund Direct Growth Plan	27.13%	Data not available	Data not available

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

The comparison table shows a wide gap between this fund and the stronger recent peer returns. On a 1-year basis, the fund’s 0.86% return is far below the peer group figures shown here, although the gap narrows once the focus shifts to its own shorter recent stretch, where it has improved relative to the benchmark.

Because the scheme does not yet have a disclosed 3-year or 5-year record, we cannot compare it meaningfully on a longer compounding basis against peers that do show a 3-year history. That makes the short-term comparison look much weaker than the benchmark-relative view, which is more balanced.

So the peer story is split: the fund has recently held up better than the benchmark, but the available peer numbers still point to much stronger absolute returns elsewhere in the same broad equity space.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Solar Industries India Limited	Chemicals	6%
Sun Pharmaceutical Industries Limited	Healthcare	5.99%
Samvardhana Motherson International Limited	Automobile & Ancillaries	5.89%
Lupin Limited	Healthcare	5.66%
ABB India Limited	Capital Goods	5.12%
Pidilite Industries Limited	Chemicals	4.91%
Bajaj Auto Limited	Automobile & Ancillaries	4.7%
Reliance Industries Limited	Crude Oil	4.27%
Azad Engineering Ltd	Capital Goods	4.12%
Asian Paints Limited	Chemicals	3.94%

The largest holding is Solar Industries India Limited at 6%, which is meaningful but not excessive on its own. The tenth holding, Asian Paints Limited, still carries 3.94%, so the weight drop from first to tenth is gradual rather than sharp.

That pattern suggests the portfolio is built around a cluster of similarly sized positions instead of one very large anchor. The top 10 holdings together account for 50.6% of the portfolio, which means half the scheme is still spread across other names in the remaining disclosed holdings.

With 27 holdings in total, the portfolio looks reasonably diversified across individual stocks, even though several of the biggest positions sit in industrial, healthcare and manufacturing-linked businesses. In our view, that mix may give the scheme a clear theme while still avoiding dependence on a single stock.

To see all holdings, visit the Motilal Oswal Manufacturing Fund Direct Growth Plan page

Source data date: as of 10 Sep 2026

Who should invest

This fund suits investors who can tolerate High Risk equity volatility and who are comfortable with a thematic manufacturing tilt. The available return pattern suggests some resilience versus the benchmark in recent stretches, but not yet a long, proven compounding record.

A longer investment horizon is important because the scheme is still young and the longer-term return history is not yet available. Investors who want a broad market core may find the focused portfolio less suitable than those willing to accept theme-driven ups and downs.

The main trade-off is between exposure to a concentrated industrial-style opportunity set and the possibility of uneven returns relative to the market in some periods.

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 90 days; no exit load after that holding period.

Source data date: as of 10 Sep 2026

Frequently asked questions

What is the current NAV of Motilal Oswal Manufacturing Fund Direct Growth Plan?
Its NAV is ₹11.9499 as of 10 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is 0.86%, while the 3-year and 5-year returns are Data not available.

How has it performed against the benchmark?
It has done better than the benchmark in the recent periods shown, including 1 month, 3 months and 1 year.

How does it compare with the peer funds listed here?
Its 1-year return is far below the peer returns shown here, while its longer-term record is not yet available for a full comparison.

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

What are the fund’s risk level, portfolio style and exit load?
It is a High Risk scheme, and the portfolio is built around a fairly even spread of large individual positions across manufacturing-linked names. The exit load is 1% if units are sold on or before 90 days, and nil after that holding period.

Bottom line

This is a High Risk thematic equity fund with a young track record, so recent improvement matters more than a long history that is not yet available. It has held up better than the benchmark in the short periods shown, but the available peer returns are still much stronger on a 1-year basis. The portfolio is not a one-stock bet, yet it remains focused on a manufacturing and industrial theme, which makes it better suited to investors who can accept uneven performance in exchange for targeted exposure.

Published on 11 September 2026 at 3:48 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.