Motilal Oswal MF launches multi-factor passive fund of funds; key details
The minimum application amount during the NFO and on an ongoing basis is ₹500, with subsequent investments in multiples of ₹1
 "Motilal Oswal MF launches multi-factor passive fund of funds; key details")
Motilal Oswal Mutual Fund (MOMF) has launched a New Fund Offer (NFO) for the Motilal Oswal Multi Factor Passive Fund of Funds. The scheme is an open-ended Fund of Funds that will invest in units of passively managed factor-based ETFs and/or Index Funds, offering diversified exposure across four key investment factors: Value, Quality, Low Volatility, and Momentum.
The scheme follows a systematic approach, allocating 25 per cent equally to each factor: Momentum (Nifty 500 Momentum 50 Index), Quality (Quality Index), Low Volatility (BSE Low Volatility), and Value (BSE Enhanced Value). Allocations will be reviewed quarterly, with rebalancing triggered only if any factor deviates by ±5 per cent from its target, according to the Scheme Information Document (SID).
The NFO opens today and will be available until March 6, 2026. The new fund is benchmarked against the Nifty 500 Total Return Index, and its risk factor, as outlined in the SID, is very high.
The minimum application amount during the NFO and on an ongoing basis is ₹500, with subsequent investments in multiples of ₹1. Multiple SIP frequency options are also available for investors.
An exit load of 1 per cent will be charged if redeemed on or before 15 days from the date of allotment, and nil if redeemed after 15 days. The SID also mentions that the exit load will apply on switches among MOMF schemes, though no load will be imposed for switching between options within the same scheme.
The fund will be managed by Swapnil Mayekar (fund manager - equity component), Dishant Mehta (associate fund manager - equity component), and Rakesh Shetty (fund manager - debt component).
Pratik Oswal, chief of business, passive funds, MOAMC, said, “Factor investing combines rule-based investing with diversified exposure across factors. The Motilal Oswal Multi Factor Passive Fund of Funds allocates equally across four factors, reducing reliance on any single factor at a point in time. It's a transparent and cost-efficient, and seeks to provide diversified factor exposure within a structured framework.”
Who should invest in the Motilal Oswal Multi Factor Passive Fund of Funds?
According to the SID, the scheme is suitable for investors seeking long-term capital growth and an opportunity to invest in passively managed factor-based ETFs and/or Index Funds with diversified exposure across multiple factors. "However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved," said MOMF in the SID.