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

Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan currently has a NAV of ₹14.581 as of 17 Sep 2026 and a scheme AUM of ₹125 Cr. Its 1-year, 3-year and 5-year returns are 20.68%, 0% and 0%, and the fund sits in the High Risk bucket. Our view is that this is a narrow, sector-led index strategy best suited to investors who can tolerate sharp swings and want exposure that has recently held up better than the benchmark, even though the longer record is still too short to judge across full market cycles.

The launch date is 19 Nov 2024, so the current history is limited. That makes the 1-year number the most useful guide today, while the portfolio and benchmark behaviour matter more than any long-run headline.

Quick facts

Particular	Details
NAV	₹14.581 as of 17 Sep 2026
AUM	₹125 Cr
Expense Ratio	0.63%
Launch Date	19 Nov 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, Rakesh Shetty

The fund is managed by Swapnil P Mayekar and Rakesh Shetty.

Source data date: as of 17 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-1.08%	-3.66%
3M	-0.55%	-3.71%
1Y	20.68%	-7.13%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The last month and the last three months were both choppy, but the fund still stayed ahead of the benchmark in each of those windows. That matters because the benchmark itself was weak over the same periods, so the fund’s relative resilience is visible even in a soft market phase.

The stronger point is the 1-year return, where the fund has delivered a positive outcome while the benchmark remains negative. That gap suggests the portfolio has been able to participate in the rebound in financial-services names better than the broad market reference over the last year.

At the same time, the shorter history limits how much can be read into the number. The fund was launched in November 2024, so there is no meaningful 3-year or 5-year record yet, and the day-to-day pattern still shows stretches of weakness mixed with recovery rather than a smooth upward run.

For investors, the takeaway is simple: recent performance is constructive, but it is not evidence of a mature long-cycle record. The fund appears more useful as a high-volatility sector allocation than as a core equity holding.

Source data date: as of 17 Sep 2026

Should you BUY or HOLD Motilal Oswal Nifty MidSmall Financial Services 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
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. The fund’s 1-year return is close to the middle of this peer set, and it is behind the stronger recent numbers posted by the capital-markets and NASDAQ-focused schemes. That said, the comparison is not one-sided: the fund still outpaces one peer on the 1-year view and sits ahead of the benchmark in the periods where both can be compared.

The longer-view comparison is less decisive because the fund itself does not yet have 3-year or 5-year history. That leaves the short-term story as the main reference point, and it is mixed: respectable recent gains, but not a standout result relative to the strongest peers in this set.

Source data date: as of 17 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
BSE Limited	Finance	11.45%
The Federal Bank Limited	Bank	7.48%
Multi Commodity Exchange of India Limited	Finance	7.40%
One 97 Communications Limited	IT	6.17%
Indusind Bank Limited	Bank	5.71%
PB Fintech Limited	IT	5.54%
AU Small Finance Bank Limited	Bank	5.25%
IDFC First Bank Limited	Bank	4.87%
Life Insurance Corporation of India	Insurance	4.53%
Max Financial Services Limited	Finance	3.56%

The top 10 holdings account for approximately 61.96% of the portfolio.

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

The largest holding, BSE Limited, carries a weight of 11.45%, which is enough to make it the single most important stock-level driver in the scheme. The next few positions are also meaningful, but the drop from the first holding to the tenth is visible, with Max Financial Services Limited at 3.56%.

That spread suggests a moderate concentration in the biggest positions rather than an even spread across the portfolio. The top five names together already form a sizeable block, and the top 10 holding basket covers 61.96% of disclosed holdings, so individual moves in large constituents may contribute noticeably to performance.

At the same time, the fund has 30 disclosed holdings, which means the tail still matters. Our view is that the structure may allow a blend of concentrated conviction in a few financial-services names and broader diversification across the rest of the basket, but the largest positions are likely to have greater influence than the smaller ones.

Source data date: as of 17 Sep 2026

Who should invest

This fund is suited to investors who are comfortable with High Risk exposure and can stay invested for a long enough horizon to absorb sharp swings. The recent return profile is better than the benchmark in the periods available, but the journey has not been smooth, so short holding periods may not suit the ride.

It fits investors who want a focused financial-services allocation and can accept that the theme may move differently from the broader market. The main trade-off is that the fund has delivered a useful recent rebound, but the sector-led structure can also mean stronger drawdowns when financial stocks lag.

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.

Source data date: as of 17 Sep 2026

Frequently asked questions

What is the current NAV of Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan?
The current NAV is ₹14.581 as of 17 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
Its 1-year return is 20.68%, while the 3-year and 5-year returns are both not available in practical terms for this young scheme.

How has it performed against the benchmark?
It has been ahead of the benchmark in the available 1-month, 3-month and 1-year periods. The benchmark remains negative over those same windows, while the fund is positive on the 1-year view.

How does it compare with peer funds on recent returns?
Its 1-year return is below the stronger recent numbers in this set, but it remains ahead of one of the peer funds and above the benchmark in the periods that can be compared.

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 and Rakesh Shetty. The exit load is 1% on or before 15D, and nil after 15D.

Bottom line

This fund’s recent return pattern is better than its benchmark, but the record is still short and the path has been uneven. Compared with the peer set, it is not the strongest recent performer, yet it remains competitive on the available one-year view. The portfolio is noticeably concentrated in a handful of financial-services names, which can amplify both upside and downside. That makes the scheme better suited to investors who want a thematic, high-risk allocation and can stay invested through sector-driven volatility.

Published on 18 September 2026 at 3:36 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.