Motilal Oswal Nifty MidSmall IT and Telecom Index Fund Analyst Review: NAV, Returns and Key Insights 2026

The Motilal Oswal Nifty MidSmall IT and Telecom Index Fund Direct Growth plan has reported a 1-year return of -4.02% amid challenging market conditions affecting its underlying theme. With a NAV of Rs 9.09 and AUM of Rs 36.52 crore, the fund manages assets for investors who believe in its long-term potential. This analyst review covers the return profile, expense structure, risk factors, and whether it remains relevant to your portfolio in 2026.

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What Is the Motilal Oswal Nifty MidSmall IT and Telecom Index Fund?

The Motilal Oswal Nifty MidSmall IT and Telecom Index Fund is a passively managed index fund that replicates the performance of a specific benchmark by investing in the same securities in the same proportions as the index. Index funds offer transparent, rules-based investing at a typically lower cost than actively managed funds. The fund carries a Very High risk rating and delivers market-linked returns that closely track its benchmark, net of the expense ratio.

Motilal Oswal Nifty MidSmall IT and Telecom Index Fund NAV and AUM

The current NAV of the Motilal Oswal Nifty MidSmall IT and Telecom Index Fund Direct Growth plan is Rs 9.09. NAV closely tracks the underlying index value, adjusted for the expense ratio and any tracking error. Always verify the most recent NAV on the AMC website or a registered mutual fund platform before placing any transaction.

With an AUM of Rs 36.52 crore, the fund is relatively nimble. This can be advantageous for portfolio agility and the ability to take positions without significant market impact. Investors should track AUM trends alongside performance metrics when evaluating this fund.

Motilal Oswal Nifty MidSmall IT and Telecom Index Fund Returns: Performance Snapshot

Period	Returns
1 Month	14.90%
3 Months	10.61%
1 Year	-4.02%
3 Years (Annualised)	Not Available
5 Years (Annualised)	Not Available

The Motilal Oswal Nifty MidSmall IT and Telecom Index Fund has reported a 1-year return of -4.02% amid challenging conditions for its investment theme. The 3-month return of 10.61% may indicate early stabilisation. Investors should assess whether the underperformance is structural or cyclical before deciding to hold, add, or exit. Entry at current levels requires careful evaluation of the risk-reward balance.

Expense Ratio and Cost Efficiency

The Motilal Oswal Nifty MidSmall IT and Telecom Index Fund Direct Growth plan carries an expense ratio of 0.88% per annum, in line with the average for actively managed funds in its category. This expense level reflects the cost of professional portfolio management. Investors should weigh this cost against the fund’s performance consistency and risk-adjusted returns when making their evaluation.

Who Should Invest in Motilal Oswal Nifty MidSmall IT and Telecom Index Fund?

The Motilal Oswal Nifty MidSmall IT and Telecom Index Fund is well suited for investors who prefer a low-cost, passive approach to equity market participation with a Very High risk appetite and a minimum 5 to 7-year horizon. The minimum SIP is Rs 500 and minimum lumpsum is Rs 500. Index funds appeal particularly to investors who want broad market exposure without the risk of active manager underperformance. Conservative and short-horizon investors should avoid this fund.

Key Risks to Consider

Tracking Error Risk: Index funds can deviate from benchmark performance due to the expense ratio, dividend reinvestment timing, and constituent rebalancing lags, creating a tracking error.

No Downside Protection: A passive fund replicates index losses as completely as it replicates index gains. There is no fund manager discretion to reduce exposure during broad market downturns.

Concentration Risk: Some indices are heavily weighted toward a few large companies or sectors. A significant fall in those concentrated positions can have an outsized negative impact on NAV.

Valuation Risk: Elevated valuations in the underlying investment universe can reduce future return potential even if the fundamental business performance of portfolio companies remains strong.

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Conclusion

The Motilal Oswal Nifty MidSmall IT and Telecom Index Fund has faced a difficult performance period with a 1-year return of -4.02%. Its expense ratio of 0.88% and AUM of Rs 36.52 crore remain its structural anchors. Investors should closely evaluate whether the fundamental investment thesis remains intact before holding, adding, or exiting. Consult a SEBI-registered investment advisor before making any decision.

Investments in securities are subject to market risk. This content is for educational purposes only and does not constitute investment advice.

Frequently Asked Questions

What is the current NAV of Motilal Oswal Nifty MidSmall IT and Telecom Index Fund?

Ans. The current NAV of the Motilal Oswal Nifty MidSmall IT and Telecom Index Fund Direct Growth plan is Rs 9.09. NAV is updated each trading day and reflects the closing market value of the fund’s underlying holdings. Always verify the most recent NAV on the AMC website or a SEBI-registered mutual fund platform before transacting.

What are the returns of Motilal Oswal Nifty MidSmall IT and Telecom Index Fund?

Ans. The fund has delivered a 1-year return of -4.02% and a 3-month return of 10.61%. The 3-year annualised return is Not Available and the 5-year annualised return is Not Available. Past performance does not guarantee future results and should be evaluated alongside the fund’s risk profile and benchmark comparison.

What is the expense ratio of Motilal Oswal Nifty MidSmall IT and Telecom Index Fund Direct Growth?

Ans. The expense ratio of the Motilal Oswal Nifty MidSmall IT and Telecom Index Fund Direct Growth plan is 0.88% per annum. The direct plan eliminates distributor commissions and is more cost-efficient than the regular plan. Investors should always opt for the direct plan to maximise long-term net returns through the compounding advantage of lower costs.

Is this fund suitable for conservative investors?

Ans. No. This fund carries a Very High risk rating due to full market replication with no downside protection. It is not suitable for conservative investors or those with short investment timelines. A minimum 5 to 7-year horizon and a high risk tolerance are required prerequisites. Consult a SEBI-registered investment advisor before investing.

What is the minimum SIP amount for this fund?

Ans. The minimum monthly SIP is Rs 500 and the minimum lumpsum investment is Rs 500. The low entry thresholds make the fund accessible across income levels. A regular SIP approach is recommended to average out entry costs over time, particularly given the high-volatility nature of this fund’s category.

What category and sub-category does this fund belong to?

Ans. This fund is a passively managed index fund tracking a specific benchmark index. It falls under the Index Fund sub-category and is available as a direct growth plan, which eliminates distributor commissions and typically offers superior net returns compared to the regular plan.