Motilal Oswal Nifty Microcap 250 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Motilal Oswal Nifty Microcap 250 Index Fund Direct Growth Plan has a NAV of ₹18.9822 as of 17 Sep 2026 and an AUM of ₹2,494 Cr. Its 1-year, 3-year and 5-year returns are 6.28%, 16% and 0%, and the fund sits in the High Risk category. Our view is that this is a microcap index option for investors who can accept sharper swings in exchange for broader exposure to a very volatile segment of the market.

The recent return pattern is steadier than the benchmark, but the longer trail still shows that this scheme has moved through meaningful drawdowns before recovering. The portfolio is led by smaller businesses across electricals, FMCG, capital goods, banks and healthcare, so the fund can behave very differently from mainstream large-cap index funds.

Quick facts

Particular	Details
NAV	₹18.9822 as of 17 Sep 2026
AUM	₹2,494 Cr
Expense Ratio	0.5%
Launch Date	05 Jul 2023
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 17 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-1.21%	-3.66%
3M	4.39%	-3.71%
1Y	6.28%	-7.13%
3Y	16%	5.82%
5Y	Data not available	Data not available

The short-term picture has improved. Over 1 month, the fund was down less than the benchmark, and over 3 months it stayed positive while the benchmark stayed negative. That tells us the scheme has recently handled a weak patch better than the benchmark, even though it still moved lower in the latest month.

The 1-year return is also ahead of the benchmark by a wide margin, which points to a stronger recovery pattern over the past year. The 3-year figure is more important for a fund launched in July 2023, and here the scheme has compounded better than the benchmark as well. That said, the path has not been smooth: the one-year time pattern shows a long decline before a late rebound, which is typical of a microcap-focused portfolio.

The benchmark line has been softer across the same windows, so the fund has compared favourably on the periods that matter most here. We would still treat the 3-year result as a recovery-led outcome rather than a sign of low volatility. Microcap exposure can move quickly in both directions, and this scheme’s recent improvement should be read in that context.

Source data date: as of 17 Sep 2026

Should you BUY or HOLD Motilal Oswal Nifty Microcap 250 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 Microcap 250 Index Fund Direct Growth Plan	6.28%	16%	Data not available
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan	29.31%	30.01%	Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan	21.45%	Data not available	Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan	21.13%	Data not available	Data not available
Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan	20.68%	Data not available	Data not available
ICICI Pru Nifty Pharma Index Fund Direct Growth Plan	17.57%	18.84%	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the recent 1-year measure, the fund trails the stronger peer returns in this group, with several peers showing materially higher gains. The 3-year result is more balanced: it is below the best peer figure shown, but it remains ahead of the peer funds in this set that do not have a 3-year figure available. The short-term view and the longer-term view therefore tell different stories, with recent improvement still sitting inside a wider microcap risk backdrop.

Source data date: as of 17 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Sterlite Technologies Limited	Electricals	2.22%
Cupid Limited	FMCG	1.98%
TD Power Systems Ltd	Capital Goods	1.85%
Sansera Engineering Limited	Automobile & Ancillaries	1.82%
Mtar Technologies Limited	Capital Goods	1.58%
Astra Microwave Products Limited	Capital Goods	1.47%
Ujjivan Small Finance Bank Limited	Bank	1.36%
The Karnataka Bank Limited	Bank	1.32%
The South Indian Bank Limited	Bank	1.24%
Shilpa Medicare Limited	Healthcare	1.16%

The top 10 holdings account for approximately 16% of the portfolio.

To see all holdings, visit the Motilal Oswal Nifty Microcap 250 Index Fund Direct Growth Plan page

The largest holding, Sterlite Technologies Limited, is 2.22%, which is modest for a fund built around microcaps. The decline from the first holding to the tenth is not steep in absolute terms, but the list still shows that no single position dominates the visible basket. That makes the portfolio look spread across a set of small positions rather than concentrated in one or two very large bets.

The sector mix in the leading holdings tilts toward capital goods and banks, with multiple names also appearing in electricals, FMCG, automobile and ancillaries, and healthcare. That spread may help reduce dependence on one sector theme, although the individual stocks themselves can still be volatile because they sit in the microcap universe.

Because the top 10 account for only about 16% of the portfolio and the fund discloses 58 holdings in total, the remainder is likely distributed across a longer tail. In our view, that structure suggests breadth rather than extreme concentration at the top, even though the underlying segment itself remains high risk.

Source data date: as of 17 Sep 2026

Who should invest

This fund fits investors who can tolerate High Risk and who understand that microcap exposure can move sharply in both directions. The one-year and three-year return pattern shows recovery potential, but the path has been uneven, so a medium-to-long investment horizon is more suitable than a short holding period.

The main trade-off is between the chance of stronger compounding when the microcap cycle turns and the possibility of deep swings along the way. Compared with the benchmark, the scheme has been ahead on the periods available here, but that does not remove volatility. Investors looking for a smoother equity experience may find the journey uncomfortable, while those who want dedicated microcap exposure may accept the sharper movement.

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% on or before 15D, Nil after 15D. No exit load after holding period.

Source data date: as of 17 Sep 2026

Frequently asked questions

What is the current NAV of Motilal Oswal Nifty Microcap 250 Index Fund Direct Growth Plan?

The current NAV is ₹18.9822 as of 17 Sep 2026.

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

The fund’s 1-year return is 6.28%, its 3-year return is 16%, and its 5-year return is not available.

How does the fund compare with its benchmark?

It has outpaced the benchmark across the periods shown. The 1-month, 3-month, 1-year and 3-year figures are all ahead of the benchmark’s corresponding returns.

How does it compare with the peer funds listed here?

Its 1-year return is below several peers in the list, while the 3-year return is above the peer funds that do not have a 3-year figure available. The comparison therefore looks mixed depending on the time frame.

What is the minimum SIP?

The minimum SIP is not stated in the available scheme details here, so we do not list a SIP amount.

What are the fund’s risk and portfolio characteristics?

The fund is marked High Risk and its leading holdings are spread across electricals, FMCG, capital goods, banks, healthcare and automobile-related businesses. The top 10 holdings account for about 16% of the portfolio, which suggests breadth across many smaller positions.

Bottom line

Motilal Oswal Nifty Microcap 250 Index Fund Direct Growth Plan has recovered better recently than its benchmark, and its 3-year result also stays ahead of the benchmark. The peer picture is more mixed, because several comparable schemes show stronger 1-year gains, even though the longer view is less one-sided. With High Risk status and a portfolio spread across many small positions rather than a few dominant names, this is a fund for investors who are comfortable with microcap volatility and can stay invested through uneven phases.

Published on 18 September 2026 at 1:43 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.