Motilal Oswal Small Cap Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Motilal Oswal Small Cap Fund Direct Growth Plan has a NAV of ₹17.4696 as of 17 Sep 2026 and an AUM of ₹8,150 Cr. Its 1-year, 3-year and 5-year returns are 19.7%, 0% and 0%, and the scheme sits in the High Risk bucket. Our view is that this is a small-cap fund for investors who can tolerate sharp swings and do not need the recent return profile to mirror the longer-horizon picture.

The fund is useful to study because the current one-year pace is clearly better than the benchmark, while the longer horizon still needs time to build. With a portfolio that includes 54 disclosed holdings and a meaningful cash-like allocation among the top positions, it looks built for active stock selection rather than broad, index-style tracking.

Quick facts

Particular	Details
NAV	₹17.4696 as of 17 Sep 2026
AUM	₹8,150 Cr
Expense Ratio	0.61%
Launch Date	26 Dec 2023
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty Small Cap
Fund Category	Equity
Exit Load	1% on or before 365D, Nil after 365D
Fund Managers	Ajay Khandelwal, Bhalchandra Shinde, Varun Sharma, Rakesh Shetty

The fund is managed by Ajay Khandelwal, Bhalchandra Shinde, Varun Sharma and Rakesh Shetty.

Source data date: as of 17 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.91%	-1.84%
3M	7.46%	2.25%
1Y	19.7%	4.94%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The recent numbers point to a fund that has held up better than its benchmark over the short and medium term. The 1-month figure is slightly negative, but it is still ahead of the benchmark’s weaker one-month stretch, which suggests the fund absorbed the latest pullback better than the index did.

Three months is more encouraging. The fund’s 7.46% return versus 2.25% for the benchmark shows a meaningful gap in its favour, and the one-year number extends that pattern. At 19.7% over one year, the fund has outpaced the benchmark’s 4.94% by a wide margin, so the recent compounding pattern is clearly stronger than the index’s.

Longer-horizon interpretation needs caution because the fund was launched only in December 2023, so 3-year and 5-year figures are not yet available. That means the recent outperformance is useful, but it does not yet tell us how the strategy behaves across a full market cycle. For investors, the key point is that the fund has shown better recent momentum than the benchmark, but the record is still too short to treat that as a long-term pattern.

Source data date: as of 17 Sep 2026

Should you BUY or HOLD Motilal Oswal Small Cap?

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
TRUSTMF Small Cap Fund Direct Growth Plan	27.33%	Data not available	Data not available
Bank of India Small Cap Fund Direct Growth Plan	24.01%	20.78%	19.46%
Motilal Oswal Small Cap Fund Direct Growth Plan	19.7%	Data not available	Data not available
Union Small Cap Fund Direct Growth Plan	18.13%	16.46%	16.71%
ITI Small Cap Fund Direct Growth Plan	17.75%	23.78%	18.52%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The fund’s one-year return sits below the stronger peer figures shown by TRUSTMF Small Cap Fund Direct Growth Plan and Bank of India Small Cap Fund Direct Growth Plan, but it is still ahead of Union Small Cap Fund Direct Growth Plan and ITI Small Cap Fund Direct Growth Plan on the same measure. That makes the recent picture middling within this peer set rather than weak.

For longer horizons, only the peer funds with track records can be compared directly. On 3-year and 5-year numbers, Bank of India Small Cap Fund Direct Growth Plan and ITI Small Cap Fund Direct Growth Plan both have fully available records, and the current fund cannot yet be judged on those periods because it is too new. The short-term story is therefore stronger than the longer-term one, which is common for a younger small-cap strategy.

Source data date: as of 17 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Triparty Repo	Cash & Cash Equivalents and Net Assets	6.34%
Rubicon Research Limited	Domestic Equities	4.52%
Va Tech Wabag Limited	Business Services	3.98%
CCL Products (India) Limited	Agri	3.37%
Karur Vysya Bank Limited	Bank	3.29%
Aditya Infotech Limited	Domestic Equities	3.19%
DR Agarwals Health Care Limited	Domestic Equities	3.04%
SKY Gold and Diamonds Limited	Diamond & Jewellery	2.62%
Rainbow Childrens Medicare Limited	Healthcare	2.4%
Vijaya Diagnostic Centre Limited	Healthcare	2.3%

The top 10 holdings account for approximately 35.05% of the portfolio.

To see all holdings, visit the Motilal Oswal Small Cap Fund Direct Growth Plan page

Triparty Repo is the largest disclosed holding at 6.34%, which is meaningful but not dominant on its own. The next nine positions step down fairly gradually into the 2% to 5% range, so the visible book does not look overly dependent on one single stock.

With 35.05% of the portfolio covered by the top 10 and 54 disclosed holdings in total, the fund appears to spread risk across a longer tail of positions rather than concentrate heavily in only a few names. That structure may help reduce the impact of any single holding, though it could also mean the portfolio needs time for the stronger ideas to show through. For a small-cap fund, that balance suggests active conviction without a fully concentrated bet.

Source data date: as of 17 Sep 2026

Who should invest

This fund fits investors who are comfortable with High Risk and who can stay invested long enough for small-cap volatility to play out. The recent one-year return is stronger than the benchmark, but the strategy is still too young to judge by longer cycle standards.

It can suit someone who wants active small-cap exposure rather than index-like behaviour, and who accepts that performance may move sharply from month to month. The main trade-off is clear: better recent momentum than the benchmark, but limited history and no 3-year or 5-year track record yet.

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 365D, Nil after 365D.

Source data date: as of 17 Sep 2026

Frequently asked questions

What is the current NAV of Motilal Oswal Small Cap Fund Direct Growth Plan?

The current NAV is ₹17.4696 as of 17 Sep 2026.

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

Its 1-year return is 19.7%, while the 3-year and 5-year returns are Data not available.

How has it performed against the benchmark?

It has outpaced Nifty Small Cap over the available periods. The fund’s 1-year return is 19.7% versus 4.94% for the benchmark, and its 3-month return is 7.46% versus 2.25%.

How does it compare with peer funds on recent return data?

Its one-year return is below TRUSTMF Small Cap Fund Direct Growth Plan and Bank of India Small Cap Fund Direct Growth Plan, but above Union Small Cap Fund Direct Growth Plan and ITI Small Cap Fund Direct Growth Plan on the figures available here.

What is the minimum SIP amount?

The minimum SIP amount is ₹500.

What is the risk profile and exit load?

The fund is in the High Risk category. The exit load is 1% on or before 365D, and nil after 365D; the fund is managed by Ajay Khandelwal, Bhalchandra Shinde, Varun Sharma and Rakesh Shetty.

Bottom line

Motilal Oswal Small Cap Fund Direct Growth Plan has shown better recent momentum than its benchmark, especially over 3 months and 1 year, but it does not yet have a long history to confirm how it behaves across a full market cycle. Compared with peers on the available figures, the one-year result is decent rather than leading, while the risk profile remains High Risk. The portfolio’s top holdings are spread across several names, which may reduce single-stock dependence and make the fund more suitable for investors who can accept volatility in exchange for active small-cap exposure.

Published on 18 September 2026 at 11:39 AM 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.