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

Motilal Oswal Nifty India Defence Index Fund Direct Growth Plan is at ₹12.8427 as of 10 Sep 2026, with scheme AUM of ₹5,528 Cr. Its 1-year, 3-year and 5-year returns are 26.95%, 0% and 0%, and the scheme sits in the High Risk category.

Our view is that this is a focused thematic index fund with strong one-year momentum, but limited longer history to judge through a full market cycle. The portfolio is heavily tilted toward defence-linked industrial names, so it may suit investors who are comfortable with sharp theme-driven swings and are looking for a satellite allocation rather than a core equity holding.

Quick facts

Particular	Details
NAV	₹12.8427 as of 10 Sep 2026
AUM	₹5,528 Cr
Expense Ratio	0.44%
Launch Date	03 Jul 2024
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 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	2.15%	-4.06%
3M	11.32%	1.37%
1Y	26.95%	-7.31%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The latest one-month and three-month numbers show that the fund has held up better than the benchmark in the near term. Over 1 month, it stayed positive while the benchmark slipped, and over 3 months it moved well ahead of the benchmark’s modest gain.

The 1-year picture is even stronger. The fund’s 26.95% return stands against a benchmark decline of 7.31%, which tells us the theme has had a powerful run relative to the broad market measure used here. That kind of gap usually reflects sector-specific momentum rather than broad market participation.

At the same time, the shorter series also suggest a choppier path. The fund had periods of softness inside the year before recovering later, so the year-end result does not look like a smooth climb. For investors, that matters because a theme fund can deliver strong bursts of performance but still move unevenly from month to month.

We would read the fund’s pattern as strong recent delivery, but with enough volatility that future returns may not mirror the last 12 months. The benchmark comparison is clearly favourable in the recent windows, yet there is not enough longer-history evidence here to treat that as a durable trend.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD Motilal Oswal Nifty India Defence 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 India Defence Index Fund Direct Growth Plan	26.95%	Data not available	Data not available
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan	33.08%	30.07%	Data not available
Aditya Birla SL Nifty India Defence Index Fund Direct Growth Plan	26.94%	Data not available	Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan	24.33%	Data not available	Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan	23.74%	Data not available	Data not available

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

On the one-year measure, this fund trails the ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan but stays very close to the Aditya Birla SL Nifty India Defence Index Fund Direct Growth Plan. The gap versus the capital-markets index funds is wider, which shows that the current theme has recently been more rewarding than those peers.

For 3-year and 5-year figures, only one peer in this set has available numbers, and that fund shows materially higher 3-year performance. That makes the comparison mixed: the fund is competitive in the short run against direct theme peers, but it does not yet have a longer published track record that lets us compare its compounding pattern on the same footing.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Hindustan Aeronautics Limited	Capital Goods	21.57%
Bharat Electronics Limited	Capital Goods	19.02%
Bharat Forge Limited	Automobile & Ancillaries	15.16%
Solar Industries India Limited	Chemicals	11.58%
Mazagon Dock Shipbuilders Limited	Ship Building	4.68%
Astra Microwave Products Limited	Capital Goods	4.07%
Data Patterns (India) Limited	Capital Goods	3.34%
Mtar Technologies Limited	Capital Goods	3.18%
Cochin Shipyard Limited	Ship Building	3.11%
Bharat Dynamics Limited	Capital Goods	2.99%

The largest holding, Hindustan Aeronautics Limited, carries a weight of 21.57%, which is large enough to have greater influence on the fund’s day-to-day movement than the smaller positions. The second and third holdings are also sizeable, so the top of the portfolio clearly matters more than the rest.

Weight drops off sharply after the first four names. By the tenth holding, the weight is down to 2.99%, which means the portfolio is not evenly spread across all disclosed names. Instead, a small set of positions likely shapes the fund’s behaviour more than the tail.

The top 10 disclosed holdings account for approximately 88.7% of the portfolio, and there are 18 disclosed holding rows in total. That points to a concentrated theme structure, even though the fund still has a longer tail beyond the largest names. For an investor, that concentration can amplify both upside and drawdowns when the theme is in or out of favour.

To see all holdings, visit the Motilal Oswal Nifty India Defence Index 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 exposure and are comfortable with theme-driven price swings. The recent 1-year result has been much stronger than the benchmark, but the shorter-period numbers also show that the path can be uneven.

It is better suited to a medium- to long-term horizon, because a defence-focused index can move in sharp cycles rather than in a smooth line. The main trade-off is that the fund offers concentrated participation in a specific market theme, which may help when that theme is strong but can also lag when sentiment cools.

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 applies as 1% on or before 15 days, and nil after 15 days. There is no exit load after the holding period.

Source data date: as of 10 Sep 2026

Frequently asked questions

What is the current NAV of Motilal Oswal Nifty India Defence Index Fund Direct Growth Plan?

The current NAV is ₹12.8427 as of 10 Sep 2026.

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

The 1-year return is 26.95%, while the 3-year and 5-year returns are Data not available.

How has the fund done versus the benchmark?

It has outpaced the benchmark in the recent 1-month, 3-month and 1-year periods. The benchmark’s 1-year return is -7.31% versus the fund’s 26.95%.

How does it compare with peer funds on available return data?

Its 1-year return is close to Aditya Birla SL Nifty India Defence Index Fund Direct Growth Plan and below ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan on the set shown here. The longer-horizon comparison is limited because most peer entries do not have 3-year or 5-year figures 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% on or before 15 days, and nil after 15 days.

Bottom line

This fund has delivered a strong recent 1-year result and has also stayed ahead of the benchmark in the shorter windows, but its longer published track record is still limited. Against the peer set shown here, the one-year outcome is competitive, though longer-horizon comparison remains incomplete for most peers. The portfolio is tightly concentrated in defence-linked industrial names, so the fund is likely to move with that theme rather than the broader market.

Published on 11 September 2026 at 3:18 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.