Context:
Motilal Oswal Mutual Fund has launched India’s first index fund tracking the BSE 1000 Total Return Index, offering investors access to a broad-based, passive equity portfolio covering 1,000 companies across large, mid, small, and micro-cap segments. The New Fund Offer (NFO) is open from June 5 to June 19, 2025.
Key Highlights
Fund Objective & Benchmark
- Objective: Generate returns that mirror the BSE 1000 Total Return Index, subject to tracking error.
- Benchmark: BSE 1000 TRI, representing ~94% of India’s listed market cap across 22 sectors.
Investment Features
- Type: Passive Index Fund
- Market Coverage: Large, mid, small, and micro-cap companies
- Top 10 Weight Cap: 33% to mitigate concentration risk
- Rebalancing: Semi-annual
- Weighting Method: Free-float market cap weighted
Why Invest in the Motilal Oswal BSE 1000 Index Fund?
Broad Diversification
- Exposure to 1,000 companies across 22 sectors
- Includes India’s top-performing emerging businesses and industry leaders
Passive & Cost-Effective
- No active stock picking
- Reduces fund manager bias and lowers cost
Aligned with India’s Growth Story
- Reflects India’s evolving economy across tech, infra, manufacturing, and consumption
- Linked to Viksit Bharat 2047 vision (target: $23–$35 trillion GDP)
Lower Risk via Index Cap
- 33% cap on top-10 stocks reduces overexposure to market heavyweights
