NFO alert! Motilal Oswal launches Diversified Equity Flexicap Passive FoF

Motilal Oswal Mutual Fund (MOMF) has announced the launch of Motilal Oswal Diversified Equity Flexicap Passive Fund of Funds, an open-ended Fund of Funds investing in passive funds. It is designed to provide diversified exposure across large-cap, mid-cap and small-cap segments through a structured allocation framework.

 

According to MOMF, the Motilal Oswal Diversified Equity Flexicap Passive FoFs aims to address a common challenge faced by equity investors—deciding which market-cap segment to invest in and when. "Historically, leadership across large, mid, and small caps has rotated over market cycles, with no single segment maintaining long-term leadership. Predicting these rotations can be difficult, often leading investors to follow recent outperformers or exit segments prematurely," it said in a statement.

 

 

The new fund offer (NFO) opened for subscription from Friday, January 2, 2026, till Thursday, January 15, 2026. 

 

Motilal Oswal Diversified Equity Flexicap Passive FoFs is benchmarked against the Nifty 500 Total Return Index.

According to the Scheme Information Document (SID), during the NFO, investors can subscribe with a minimum lump sum of ₹500 and in multiples of ₹1 thereafter, while on an ongoing basis, the minimum lump sum subscription remains ₹500 with additional investments in multiples of ₹1.

 

Additionally, an exit load of 1 per cent will be levied if units are redeemed on or before 15 days from the date of allotment, and no exit load will apply thereafter. The exit load is also applicable to switches between different schemes of MOMF, while no load will be charged for switches between options within the same scheme or among plans within the same scheme.

 

Pratik Oswal, chief of business for Passive Funds at Motilal Oswal Asset Management Company (MOAMC), said, Market-cap leadership keeps changing, and trying to predict which segment may outperform next is challenging. 

 

"The Motilal Oswal Diversified Equity Flexicap Passive Fund of Funds is designed to remove this guesswork by allocating equally across large, mid, and small caps. It allows investors to participate in market rotations automatically through a transparent, disciplined framework while the strategy remains subject to the fund manager’s discretion,” Oswal said.

 

Swapnil Mayekar is the designated fund manager for the equity component, and Rakesh Shetty for the debt component.  ALSO READ | Why did Motilal Oswal start coverage on Groww with 'Buy' rating? Check here

Motilal Oswal Diversified Equity Flexicap Passive FoFs: Who should invest?

"The investment objective of the scheme is to generate long-term capital appreciation by predominantly investing in passive funds such as ETFs or Index Funds of equity and equity-related instruments that offer diversified exposure across all market capitalisation segments," the AMC said. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved. Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

 

According to the riskometer, the principal investor in this scheme will be at very high risk.