Motilal Oswal Nifty Next 50 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Motilal Oswal Nifty Next 50 Index Fund Direct Growth Plan is valued at ₹25.2826 as of 15 Sep 2026, and its scheme AUM stands at ₹521 Cr. Its 1-year, 3-year and 5-year returns are 2.99%, 15.67% and 10.81% respectively, while the risk category is High Risk. Our view is that it suits investors who can tolerate sharp swings and want a diversified index-style equity holding, but the recent return profile has been uneven even though the longer-term record is better.

The fund’s benchmark behaviour, portfolio concentration and category placement suggest that it is better suited to a patient investor who can stay invested through periods of weaker short-term performance. The direct plan structure and the low expense ratio of 0.32% keep costs contained, but return smoothness should not be expected from a High Risk equity index strategy.

Quick facts

Particular	Details
NAV	₹25.2826 as of 15 Sep 2026
AUM	₹521 Cr
Expense Ratio	0.32%
Launch Date	23 Dec 2019
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 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-5.61%	-4.81%
3M	-1.84%	-3.63%
1Y	2.99%	-8.27%
3Y	15.67%	5.59%
5Y	10.81%	5.58%

Recent performance has been weak in absolute terms, with both the 1-month and 3-month returns still negative. That tells us the fund has faced a difficult near-term stretch, even though the 3-month result is less weak than the benchmark over the same window.

Over 1 year, the fund stayed positive while the benchmark was negative, which is an important sign of relative resilience. The longer 3-year and 5-year records are stronger still, and both sit well ahead of the benchmark. That gap matters because it shows the fund has converted a choppy journey into better compounding over full market cycles.

The time pattern is also uneven rather than smooth. There is a clear recovery after earlier softness, but the more recent drift is again softer. For an equity index fund, that combination usually means investors should judge it through a longer lens instead of reading too much into a single short period.

Compared with the benchmark, the fund has been ahead on every period except the 1-month window in which both were negative. Our reading is that the fund has historically delivered better long-term participation in the broader next-50 universe, but the latest move shows that near-term volatility remains part of the experience.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Motilal Oswal Nifty Next 50 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 Next 50 Index Fund Direct Growth Plan	2.99%	15.67%	10.81%
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan	32.61%	29.92%	Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan	25.91%	Data not available	Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan	21.71%	Data not available	Data not available
Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan	20.15%	Data not available	Data not available
ICICI Pru Nifty Pharma Index Fund Direct Growth Plan	18.11%	18.92%	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 much lower than the stronger recent peer figures in the table, though its 3-year and 5-year numbers are more competitive. The short-term comparison therefore looks weaker than several peers, but the longer-term comparison is more balanced because the fund has compounded better than the benchmark and sits in the middle of the available peer set on multi-year returns.

That split tells a useful story: the fund has not matched the fastest short-term peer gains, yet its longer holding-period returns remain respectable. For investors, the key question is whether they are looking for recent momentum or for steadier participation across full cycles.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Divi'S Laboratories Limited	Healthcare	4.74%
TVS Motor Company Limited	Automobile & Ancillaries	4.02%
Tata Motors Ltd	Domestic Equities	3.88%
Hindustan Aeronautics Limited	Capital Goods	3.59%
Adani Power Limited	Power	3.24%
Cholamandalam Investment and Finance Company Limited	Finance	3.17%
Samvardhana Motherson International Limited	Automobile & Ancillaries	2.97%
Torrent Pharmaceuticals Limited	Healthcare	2.92%
Cummins India Limited	Automobile & Ancillaries	2.72%
Bharat Petroleum Corporation Limited	Crude Oil	2.58%

The top 10 holdings account for approximately 33.83% of the portfolio.

To see all holdings, visit the Motilal Oswal Nifty Next 50 Index Fund Direct Growth Plan page

The largest holding is Divi'S Laboratories Limited at 4.74%, which is meaningful but not dominant. The weight then steps down gradually through the next positions, and by the tenth holding the allocation is 2.58%, so the gap from the top to the tenth is present but not extreme.

This pattern suggests the fund may not be driven by one or two outsized positions alone. With 33.83% of the portfolio in the displayed top 10 and 50 disclosed holdings in total, the portfolio appears spread across a reasonably broad base, even though the leading names could still have greater influence on returns than the tail.

For investors, that balance matters because it points to diversification within the next-50 basket without eliminating company-specific variation. The fund may still move sharply when a few leading names reprice, but the larger set of holdings can help prevent any single stock from fully steering the outcome.

Source data date: as of 15 Sep 2026

Who should invest

This fund fits investors who can tolerate High Risk equity volatility and are comfortable with swings in both directions. The 1-year record is modest, but the 3-year and 5-year figures are much stronger, which argues for an investment horizon long enough to let the broader next-50 universe work through cycles.

It may suit someone who wants a diversified large- and mid-cap style market exposure through an index approach and is willing to accept that short-term performance can lag or turn negative. The main trade-off is between lower-cost index exposure and the reality of uneven near-term outcomes.

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 15 Sep 2026

Frequently asked questions

What is the current NAV of Motilal Oswal Nifty Next 50 Index Fund Direct Growth Plan?
Its NAV is ₹25.2826 as of 15 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 2.99%, 15.67% and 10.81%.

How has it done against the benchmark?
It has outperformed the benchmark over 1 year, 3 years and 5 years. The benchmark return is -8.27% for 1 year, 5.59% for 3 years and 5.58% for 5 years.

How does it compare with peer funds on recent returns?
Its 1-year return is below several peers in the table, while its 3-year and 5-year numbers are more competitive. That makes the short-term picture weaker than the longer-term picture.

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

What is the risk profile and exit load?
The fund is tagged High Risk. Exit load is 1% on or before 15D, and nil after 15D.

Bottom line

This fund shows a clear split between near-term softness and stronger multi-year compounding. It has also held up better than the benchmark over 1-year, 3-year and 5-year horizons, while several peers have shown stronger recent 1-year momentum. The portfolio is spread across 50 disclosed holdings, with the top 10 accounting for 33.83%, so it is not overly dependent on a single stock. Overall, it looks better suited to patient equity investors who can accept High Risk volatility in exchange for broader index participation.

Published on 16 September 2026 at 2:16 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.