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

Motilal Oswal Midcap Fund Direct Growth Plan has a NAV of ₹122.7222 as of 27 August 2026 and a scheme AUM of ₹40,036 Cr. Its 1-year, 3-year and 5-year returns are 3.6787%, 21.9329% and 23.9407%, and the fund sits in the High Risk category.

Our view is that the fund suits investors who can handle sharp swings in mid-cap exposure and are looking for stronger long-term compounding than the near-term figure suggests. The portfolio is largely mid-cap focused, with meaningful sector concentration that can lift upside in favourable markets but also keep performance uneven.

Quick facts

Key	Value
NAV	₹122.7222
AUM	₹40,036 Cr
Expense Ratio	0.69%
Launch Date	24 February 2014
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty Mid Cap
Fund Category	Equity
Exit Load	1% if units are sold on or before 365 days; nil after 365 days
Fund Managers	Ajay Khandelwal, Ankit Agarwal, Varun Sharma, Rakesh Shetty

The fund is managed by Ajay Khandelwal, Ankit Agarwal, Varun Sharma and Rakesh Shetty.

Source data date: as of 27 Aug 2026

Performance

Period	Fund return	Benchmark return
1M	6.87%	2.52%
3M	15.46%	4.15%
1Y	3.68%	10.41%
3Y	21.93%	15.29%
5Y	23.94%	16.99%

The recent picture is mixed. Over 1 month and 3 months, the fund has moved well ahead of the benchmark, which suggests a stronger short-term rebound than the index. That said, the 1-year return is still well below the benchmark, so the recovery has not been smooth over the full year.

The longer view is more encouraging. The 3-year and 5-year returns are both ahead of the benchmark, and that gap matters more for a mid-cap strategy than a brief burst of short-term strength. It tells us the fund has been able to compound better than the index across a fuller cycle, even though the path has not been linear.

The time pattern also supports that reading. The fund has seen stretches of weakness and recovery, rather than a straight upward climb, which is normal for a high-risk mid-cap portfolio. The recent improvement is useful, but we would not treat it as proof of a stable trend because the 1-year result still trails the benchmark by a wide margin.

Overall, the fund has a stronger medium- and long-term record than its latest 12-month figure, and that contrast is the main feature of its performance profile. For investors, the key question is whether they are comfortable waiting through uneven periods for the longer compounding pattern to play out.

Source data date: as of 27 Aug 2026

Should you BUY or HOLD Motilal Oswal Midcap?

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 Midcap Fund Direct Growth Plan	3.68%	21.93%	23.94%
HSBC Midcap Fund Direct Growth Plan	24.87%	26.42%	20.53%
WOC Mid Cap Fund Direct Growth Plan	18.38%	24.13%	Data not available
Helios Mid Cap Fund Direct Growth Plan	17.40%	Data not available	Data not available
ITI Mid Cap Fund Direct Growth Plan	16.76%	23.07%	18.24%
Mahindra Manulife Mid Cap Fund Direct Growth Plan	16.34%	21.37%	20.14%

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

The fund’s 1-year return is far below the stronger peer figures in this set, while its 3-year and 5-year numbers are more competitive. That creates a split story: the recent year has been weak relative to the better performers, but the longer holding periods show the fund has kept pace better over time. Compared with the peers that have full 3-year and 5-year data, its 3-year result is above most of them, and its 5-year result is also comfortably ahead of several funds with available history.

This means the fund looks less convincing on recent momentum than some peers, but more durable on the longer horizon than the same short-term reading might suggest. The short-term and long-term comparisons do not point in the same direction, so our focus stays on whether an investor wants recent strength or a more established compounding pattern.

Source data date: as of 27 Aug 2026

Portfolio: where your money goes

Market cap bucket	Allocation
Large cap	21.02%
Mid cap	72.19%
Small cap	2.66%
Other	4.13%

Sector	Weight	Top holdings
FINANCE	18.53%	MULTI COMMODITY EXCHANGE OF INDIA LIMITED (7.98%), HDFC ASSET MANAGEMENT COMPANY LIMITED (3.37%)
AUTOMOBILE & ANCILLARIES	15.51%	WABCO INDIA LIMITED (13.23%), TUBE INVESTMENTS OF INDIA LIMITED (1.7%)
BANK	14.62%	CITY UNION BANK LIMITED (12.17%), KOTAK MAHINDRA BANK LIMITED (1.24%)
IT	13.28%	ONE 97 COMMUNICATIONS LIMITED (4.29%), COFORGE LIMITED (4.08%)
RETAILING	9.67%	TRENT LIMITED (5.97%), ETERNAL LIMITED (3.7%)

The portfolio is clearly anchored in mid caps, which form 72.19% of assets, while large caps make up 21.02%. Small caps are only 2.66%, so the portfolio is not built as a small-cap-heavy aggressive blend; it is mainly a mid-cap engine with some larger-company ballast.

Among the listed sectors, Finance at 18.53% is the largest and is meaningfully ahead of the next sector, Automobile & Ancillaries at 15.51%. Bank and IT are close behind, which means the fund is not spread evenly across the market. Finance may therefore have the greatest influence on portfolio behaviour, especially because the sector also includes a large single holding weight.

That concentration can be useful when the chosen businesses perform well, but it also makes the fund more dependent on a narrower set of outcomes than a broad, low-conviction portfolio would be. For investors, the mix suggests a mid-cap core with selective concentration in a few sectors and holdings, which may raise return potential but can also keep volatility elevated.

Source data date: as of 27 Aug 2026

Who should invest

This fund fits investors who can tolerate High Risk exposure and who are comfortable with a mid-cap portfolio that may move sharply across market cycles. The 3-year and 5-year figures show better compounding than the 1-year number, so the stronger fit is for a longer investment horizon rather than someone focused on short-term stability.

The main trade-off is clear: the fund has the structure to participate strongly when mid-caps are in favour, but the recent 1-year result shows that the path can still be uneven relative to the benchmark. Investors who want a steadier ride or a more benchmark-like return pattern may find the swings harder to accept.

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 365 days; nil after 365 days.

Source data date: as of 27 Aug 2026

Frequently asked questions

What is the current NAV of Motilal Oswal Midcap Fund Direct Growth Plan?

The current NAV is ₹122.7222 as of 27 August 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

The fund’s 1-year, 3-year and 5-year returns are 3.6787%, 21.9329% and 23.9407%.

How does the fund compare with the benchmark?

It is ahead of the benchmark over 3 years and 5 years, but behind it over 1 year. The shorter 1-month and 3-month periods are also stronger than the benchmark.

What is the minimum SIP amount?

The minimum SIP amount is ₹500.

How risky is this fund and what does the portfolio look like?

It is marked High Risk and is heavily tilted toward mid caps at 72.19%. Finance is the largest sector at 18.53%, followed by Automobile & Ancillaries, Bank, IT and Retailing.

What are the tax and exit-load rules?

Units held for less than 1 year attract 20% short-term capital gains tax, while units held for more than 1 year attract 12.5% long-term capital gains tax. The exit load is 1% if units are sold on or before 365 days and nil after 365 days.

Bottom line

The fund’s recent 1-year return is weak relative to its longer-term track record, but the 3-year and 5-year numbers point to stronger compounding over a fuller cycle. Compared with peers that have comparable history, the longer-term picture is solid even though the latest year is softer. The fund remains High Risk and is mainly mid-cap driven, with Finance carrying the largest sector weight. That combination makes it better suited to investors who can hold through uneven periods and are focused on longer-term growth potential.

Published on 28 August 2026 at 10:20 AM 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.