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

Motilal Oswal Nifty MidSmall IT and Telecom Index Fund Direct Growth Plan has a NAV of ₹9.6555 as of 11 Sep 2026 and scheme AUM of ₹53 Cr. Its 1-year, 3-year and 5-year returns are 2.27%, 0% and 0%, and the fund sits in the High Risk category. Our view is that it suits investors who are comfortable with sharp sector-linked swings and want exposure to a narrow IT-and-telecom theme, but the return record is still short and uneven.

The fund has been around since 19 Nov 2024, so the track record is limited. The portfolio is led by a few large positions, which can make outcomes more dependent on the performance of those names than in a broader index strategy.

Quick facts

Particular	Details
NAV	₹9.6555 as of 11 Sep 2026
AUM	₹53 Cr
Expense Ratio	0.64%
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 11 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.48%	-3.66%
3M	6.62%	-1.91%
1Y	2.27%	-7.62%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The recent profile is mixed, but it is better than the benchmark over every available period. The 1-month return is slightly negative, yet it is still less weak than the benchmark, which suggests the fund handled the latest patch of volatility somewhat better than the reference index.

The stronger point is the 3-month figure, where the fund posted a clear gain while the benchmark stayed negative. That kind of relative resilience matters in a thematic index product because it can soften the impact of market swings when the underlying segment is under pressure.

Over 1 year, the fund is positive, but the pace of return is modest. The daily pattern in the 1-year series also shows that gains were not linear: there were drawdowns, recovery phases and a later stabilisation. That makes the recent path look constructive but not smooth, which is consistent with a narrow sector strategy rather than a broad market fund.

Longer-horizon figures are not yet available, so we cannot read a full 3-year or 5-year compounding story. On the evidence available, the fund has held up better than the benchmark in the short run, but the return history is still too young to treat the recent pattern as a mature cycle.

Source data date: as of 11 Sep 2026

Should you BUY or HOLD Motilal Oswal Nifty MidSmall IT and Telecom 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 MidSmall IT and Telecom Index Fund Direct Growth Plan	2.27%	Data not available	Data not available
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan	32.61%	29.92%	Data not available
Motilal Oswal Nifty India Defence Index Fund Direct Growth Plan	26.23%	Data not available	Data not available
Aditya Birla SL Nifty India Defence Index Fund Direct Growth Plan	26.22%	Data not available	Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan	26.18%	Data not available	Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan	25.91%	Data not available	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 far below the peer set shown here, where the available figures cluster much higher. That gap means the short-term comparison is not flattering, even though the fund still beat the benchmark over the same horizon.

For longer periods, the comparison is limited because the fund does not yet have 3-year or 5-year history, while one peer does show a strong 3-year number. So the available data tell two different stories: the fund has been relatively steady versus its benchmark in the recent run, but it does not yet have a long record to stand alongside the better-established peer histories.

Source data date: as of 11 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Coforge Limited	IT	15.83%
Persistent Systems Ltd	IT	13.93%
Indus Towers Limited	Telecom	11.48%
Vodafone Idea Limited	Telecom	9.04%
Mphasis Limited	IT	7.36%
Oracle Financial Services Software Limited	IT	6.85%
HFCL Limited	Telecom	5.85%
Tata Communications Limited	Telecom	4.64%
Tata Technologies Ltd	IT	3.27%
Tata Elxsi Limited	IT	2.82%

The top 10 holdings account for approximately 81.07% of the portfolio.

To see all holdings, visit the Motilal Oswal Nifty MidSmall IT and Telecom Index Fund Direct Growth Plan page

The largest holding, Coforge Limited, carries a weight of 15.83%, so it is likely to have a meaningful influence on near-term fund movements. Persistent Systems Ltd at 13.93% and Indus Towers Limited at 11.48% are also large positions, which means the fund’s outcome is heavily shaped by a small set of names rather than one broad market basket.

The weight drop from the first holding to the tenth is noticeable but not extreme: the tenth holding still stands at 2.82%, so the portfolio tapers down gradually after the top few positions. That pattern suggests the fund is not a single-stock style portfolio, but it is clearly concentrated enough that the biggest positions may drive a large share of the behaviour.

With 20 disclosed holdings and more than four-fifths of the portfolio in the top 10, the structure looks front-loaded. That concentration can help the fund express its theme cleanly, but it also means the tail of smaller positions may have less influence than the headline names.

Source data date: as of 11 Sep 2026

Who should invest

This fund is suitable for investors who can tolerate High Risk and are comfortable with a sector-specific equity exposure that may move differently from a broad market fund. The portfolio’s heavy tilt toward IT and telecom names means returns can depend on a relatively narrow part of the market.

The short-term return pattern is better than the benchmark, but the longer-term track record is not yet available, so the investment case is more about theme exposure than proven cycle performance. Investors with a longer horizon and patience for uneven performance may find the structure easier to hold than someone looking for steadier, market-like outcomes.

The main trade-off is between thematic upside and concentration risk: the fund may benefit strongly when its chosen segment is in favour, but it may also be more volatile when that segment 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: 1% if units are sold on or before 15 days; nil after 15 days.

Source data date: as of 11 Sep 2026

Frequently asked questions

What is the current NAV of Motilal Oswal Nifty MidSmall IT and Telecom Index Fund Direct Growth Plan?
The current NAV is ₹9.6555 as of 11 Sep 2026.

What are the 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 2.27%, while the 3-year and 5-year returns are both 0 because the scheme does not yet have those full track records.

How does the fund compare with its benchmark?
It has beaten the benchmark in every available period here: 1 month, 3 months and 1 year. The margin is especially clear over 3 months and 1 year.

How does it compare with the peer funds listed here?
Its 1-year return is well below the peer figures shown here, while the peer set has limited long-horizon comparables for most funds. That makes the short-term gap more visible than the longer-term comparison.

What is the minimum SIP amount?
The minimum SIP amount is ₹500.

Who manages the fund and what is the portfolio style?
The fund is managed by Swapnil P Mayekar and Rakesh Shetty. Its portfolio is concentrated in IT and telecom names, with the top 10 holdings accounting for 81.07% of the portfolio.

Bottom line

This is a High Risk thematic index fund whose recent return pattern is better than the benchmark but still modest in absolute terms. The peer table shows that its 1-year performance trails the comparison set shown here, while the fund itself lacks 3-year and 5-year history. The portfolio is concentrated, with a heavy tilt toward a few IT and telecom names, so it may suit investors who want focused sector exposure and can accept a more uneven ride rather than a broad, steadier equity profile.

Published on 15 September 2026 at 4:04 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.