Motilal Oswal MF launches BSE 1000 Index Fund: Here's all you need to know

Motilal Oswal BSE 1000 Index Fund aims to provide returns that, before expenses, correspond to the total returns of the securities as represented by BSE 1000 Index

Motilal Oswal BSE 1000 Index Fund: Motilal Oswal Mutual Fund has launched its Motilal Oswal BSE 1000 Index Fund, an open-ended scheme tracking BSE 1000 Total Return Index. The new fund offer (NFO) will open for subscription today, June 5, 2025, and close on Thursday, June 19, 2025. The fund provides broad-based exposure to India's equity markets by tracking the BSE 100 Total Return Index, which covers around 94 per cent of the country's listed market capitalisation. It includes companies across large, midcap, smallcap, and micro-cap segments, representing diverse sectors and industries. 

 

The index offers a mix of established companies as well as fast-growing smaller firms from 22 different sectors. To reduce concentration risk, the top 10 stocks are capped at around 33 per cent of the total weight. It also includes micro-cap companies, whose market size and trading activity have grown from 5 times and 14 times, respectively, over the last five years. The index is passively managed, based on free-float market value, and is rebalanced twice a year.

 

According to the Scheme Information Document (SID), the scheme aims to provide returns that, before expenses, correspond to the total returns of the securities as represented by BSE 1000, subject to tracking errors. However, there can be no assurance or guarantee that the investment objectives of the scheme will be achieved.

 

According to SID, if the units are redeemed on or before 15 days from the day of allotment, an exit load of 1 per cent will be charged. However, no exit load will be charged if units are redeemed after 15 days from the date of allotment. According to the riskometer, the principal invested in the scheme will be at very high risk.   ALSO READ | Most top performing active MFs have value, momentum bias, says study

 

Swapnil Mayekar, Dishant Mehta, and Rakesh Shetty are the designated fund managers for the schemes.

 

Pratik Oswal, chief of passive business at Motilal Oswal Asset Management Company (MOAMC), said that this fund provides a diversified exposure to India’s corporate sector and is a natural evolution for investors seeking a passive investment option. "As pioneers in passive investing, our goal is to offer simple, low-cost, and scalable investment options, and this launch aligns with that objective," he added.

 

During the NFO and ongoing basis, investors can invest a minimum amount of ₹5,000 and in multiples of ₹1 thereafter. The minimum amount and frequency vary for investments through a Systematic Investment Plan (SIP).

Motilal Oswal BSE 1000 Index Fund: Who should invest?

According to the SID, the fund is suitable for investors seeking long-term capital growth and return that corresponds to the BSE 1000 Total Return Index, subject to tracking error. However, investors should consult their financial advisers if in doubt about whether the product is suitable for them.