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

Motilal Oswal Nifty Bank Index Fund Direct Growth Plan currently has a NAV of ₹20.7682 as of 15 Sep 2026 and an AUM of ₹676 Cr. Its 1-year, 3-year and 5-year returns are 1.98%, 7% and 9.23% respectively, and the scheme is tagged as High Risk. Our view is that this is a concentrated banking index fund that has shown a steady longer-term return profile, but the recent stretch has been softer than its multi-year trend.

The portfolio is heavily tilted toward large banks, so the fund can move sharply with the banking cycle. That makes it more suitable for investors who can tolerate short-term swings and want a focused banking allocation rather than broad market diversification.

Quick facts

Particular	Details
NAV	₹20.7682 as of 15 Sep 2026
AUM	₹676 Cr
Expense Ratio	0.26%
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	-2.98%	-4.81%
3M	-2.22%	-3.63%
1Y	1.98%	-8.27%
3Y	7%	5.59%
5Y	9.23%	5.58%

The recent picture is mixed, but not weak relative to the benchmark. Over 1 month and 3 months, the fund was still negative, yet it held up better than the benchmark in both periods. That tells us the bank basket has remained under pressure, but the fund has absorbed that weakness more effectively than the benchmark measure shown here.

The 1-year return is more telling. The fund is positive at 1.98% while the benchmark is still negative at -8.27%, so the fund has clearly done better over the last year. That does not mean the path was smooth; the pattern across the year shows a sharp mid-period drawdown followed by recovery, which is typical of a sector-focused index fund.

On a 3-year and 5-year basis, the fund’s returns of 7% and 9.23% are ahead of the benchmark’s 5.59% and 5.58%. That suggests the longer-term compounding has been better than the reference index. Even so, the fund’s recent behaviour has not matched the cleaner upward drift seen over the full five-year window, so short-term volatility remains a real feature of this strategy.

For investors, the key point is that this is a focused banking exposure rather than a broad equity fund. The return pattern shows that the fund can recover, but it may also spend extended periods moving sharply with the sector.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Motilal Oswal Nifty Bank 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

Fund	1Y return	3Y return	5Y return
Motilal Oswal Nifty Bank Index Fund Direct Growth Plan	1.98%	7%	9.23%
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

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

The current fund trails the strongest 1-year peer returns in this group, but that comparison is not surprising for a banking-focused strategy. What matters more is that its 3-year and 5-year figures are comfortably positive and sit above the benchmark figures shown in the table.

The short-term peer picture and the longer-term peer picture point in different directions. On 1-year performance, several sector-focused peers have delivered much stronger gains, while this fund has been much quieter. Over 3 years and 5 years, though, the fund’s own record is steadier and still better than the benchmark numbers in the table, which makes it more of a moderate long-term compounder within its niche than a short-term momentum play.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
HDFC Bank Limited	Bank	17.02%
ICICI Bank Limited	Bank	14.85%
State Bank of India	Bank	10.27%
Kotak Mahindra Bank Ltd	Bank	9.88%
Axis Bank Limited	Bank	9.19%
The Federal Bank Limited	Bank	7.15%
Indusind Bank Limited	Bank	5.44%
AU Small Finance Bank Limited	Bank	4.82%
IDFC First Bank Limited	Bank	4.68%
Bank of Baroda	Bank	3.47%

The top 10 holdings account for approximately 86.77% of the portfolio.

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

This is a clearly concentrated banking basket. The largest holding, HDFC Bank Limited, carries a 17.02% weight, so it is likely to have greater influence on near-term returns than any smaller single position.

The weight then steps down through ICICI Bank Limited at 14.85% and State Bank of India at 10.27%, before gradually tapering to 3.47% for Bank of Baroda in the tenth slot. That decline is not abrupt after the top two names, but it still leaves the portfolio anchored by a handful of large positions.

Because the top 10 holdings together account for 86.77% of the portfolio, the tail beyond the disclosed holdings may add diversification, but the visible book is still heavily clustered. With 14 disclosed holdings in total, the fund looks more concentrated than a broad market index, which may increase sensitivity to movements in the banking sector.

Source data date: as of 15 Sep 2026

Who should invest

This fund suits investors who are comfortable with High Risk and can stay invested through sharp banking-sector swings. The return pattern shows that shorter periods can be choppy, while 3-year and 5-year results have been more constructive. That means the natural fit is a longer horizon rather than a short trading window.

The main trade-off is concentration. You get a focused bank exposure that has beaten the benchmark figures shown here over 3 years and 5 years, but the same focus can also cause larger drawdowns when banking stocks weaken. It is better suited to investors who want a banking allocation inside a broader portfolio, not to those looking for defensive stability.

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 Bank Index Fund Direct Growth Plan?
Its NAV is ₹20.7682 as of 15 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 1.98% for 1 year, 7% for 3 years and 9.23% for 5 years.

How does the fund compare with its benchmark?
It has outpaced the benchmark figures shown here over 1 year, 3 years and 5 years. The gap is most visible over 1 year, where the fund is positive while the benchmark is negative.

Which peer fund shows the strongest 1-year return in the comparison set?
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan shows the strongest 1-year return in the peer list at 32.61%. The comparison set also includes several other sector-focused funds with materially higher 1-year returns than this banking fund.

Does the fund have a minimum SIP?
No minimum SIP figure is presented here. The available facts do not include a disclosed minimum SIP amount.

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

Motilal Oswal Nifty Bank Index Fund Direct Growth Plan has been quieter in the short run but better over longer stretches, with 3-year and 5-year returns ahead of the benchmark figures shown here. The fund remains High Risk and the portfolio is tightly centered on banks, so performance is likely to track the sector closely. For investors who want a focused banking allocation and can accept swings, the mix of concentrated holdings and stronger long-term numbers makes it a relevant niche option.

Published on 16 September 2026 at 1:35 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.