Motilal Oswal Asset Management Company Limited has launched the Motilal Oswal Nifty Midcap150 Plus 8-13 yr G-Sec 70:30 Index Fund, a new open-ended index fund. The NFO (new fund offer, the first window to buy units at launch) opens on 12-10-2026 and closes on 26-10-2026.
The fund copies an index. Of every Rs 100, about Rs 70 follows 150 mid-sized listed companies and about Rs 30 follows government bonds maturing in 8 to 13 years.
The draw is one fund that holds mid-cap shares and bonds together, from Rs 500. No manager picks stocks. The index decides.
Motilal Oswal Nifty Midcap150 Plus 8-13 yr G-Sec 70:30 Index Fund NFO details
Fund name | Motilal Oswal Nifty Midcap150 Plus 8-13 yr G-Sec 70:30 Index Fund |
Fund type | Open-ended index fund |
Category | Other schemes: index fund |
Nature of scheme | Passive, tracks an index |
Benchmark | Nifty Midcap150 Plus 8-13 yr G-Sec 70:30 Index |
Fund managers | Swapnil Mayekar (equity), Dishant Mehta (associate, equity) and Rakesh Shetty (debt), all since inception |
NFO opens | 12-10-2026 |
NFO closes | 26-10-2026 |
Allotment/reopening date | Not available |
Minimum investment | Rs 500 and multiples of Re 1 |
Additional investment | Rs 500 and multiples of Re 1 |
SIP amount | Rs 500 monthly, minimum 12 instalments |
NAV | Rs 10 per unit |
Stamp duty | 0.005% of the purchase amount |
Entry load | Not available |
Exit load | 1% within 15 days of allotment, nil after |
Plans and option | Regular and Direct, Growth option only |
Annual expenses | Up to 0.90% of daily net assets (estimate) |
Motilal Oswal Asset Management Company: AMC details
AMC name | Motilal Oswal Asset Management Company Limited |
Assets under management | Rs 2,01,223 crore+ (as of 27-04-2026, per the AMC website) |
Website | |
Registered office | 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opp. Parel ST Depot, Prabhadevi, Mumbai 400025 |
Contact number | +91 22 40548002 |
Source: AMFI India new fund offer: Motilal Oswal Nifty Midcap150 Plus 8-13 yr G-Sec 70:30 Index Fund
What has Motilal Oswal Mutual Fund launched?
This is an open-ended index fund. Open-ended means you can buy and sell units after the NFO at the day’s NAV (net asset value, the price of one unit).
It follows the Nifty Midcap150 Plus 8-13 yr G-Sec 70:30 Index, run by NSE Indices Limited. Seventy per cent comes from the Nifty Midcap 150 Index. Thirty per cent comes from the Nifty 8-13 yr G-Sec Index, which holds government bonds(G-Secs) issued by the Government of India.
The aim is to match the index, subject to tracking error, and to grow your money over the long term. Tracking error is the small gap between the fund’s returns and the index’s.
The fund is fully passive, with no stock selection. It buys what the index holds, in the same proportions. Being new, it has no past performance.
How does the index fund strategy work?
Step | What happens? |
1 | NSE Indices Limited sets the index: 70% mid-cap shares, 30% G-Secs. |
2 | You invest in the NFO at Rs 10 per unit. The money is pooled. |
3 | The fund buys the index shares and bonds in index weights, within 30 business days of allotment. |
4 | As prices move, the 70:30 split drifts. The index resets it every month. |
5 | Index changes take effect on the last working day of the month. The fund rebalances within 7 calendar days. |
A simple example of how this fund works
Say you invest Rs 10,000 in the NFO. The fund puts about Rs 7,000 into mid-cap shares and about Rs 3,000 into government bonds, as the index does.
If shares grow to 74% of the index by month end, the monthly reset restores 70:30 and the fund follows. This shows the process, not expected returns.
Portfolio allocation of the Nifty Midcap150 Plus G-Sec index fund
Instrument | Minimum | Maximum |
Constituents of the Nifty Midcap150 Plus 8-13 yr G-Sec 70:30 Index | 95% | 100% |
Debt and money market instruments | 0% | 5% |
The fund does not invest overseas. On 31-07-2026, the largest index holdings were three government bonds: 6.94% GS 2036 (14.41%), 6.48% GS 2035 (8.99%) and 6.33% GS 2035 (6.47%).
Investment strategy: how the fund tracks the index
There is no stock picking. The fund mirrors the index and rebalances within 7 calendar days of any change.
On the bond side, the SID asks the fund to keep its Macaulay duration within 10% of the index. Duration measures how much bond prices move when interest rates change.
When shares are hard to buy, it may briefly use index futures or options (up to 20% of net assets). It will not short sell.
Potential benefits of the Motilal Oswal 70:30 index fund
Potential benefit | Why does it matter? |
Two assets in one fund | Mid-cap shares for growth and government bonds, without buying each separately. |
Rule-based holdings | The fund follows a public index, so results do not rest on one manager’s stock calls. |
Monthly reset to 70:30 | The mix returns to target each month, so one asset does not quietly take over. |
Rs 500 entry point | Lump sum and monthly SIP both start at Rs 500. |
Things to know before investing in this NFO
Point to note | What does it mean? |
Mid-cap price swings | Medium-sized company shares can rise and fall sharply. About 70% of the index sits here. |
Bonds react to interest rates | Bond prices usually fall when rates rise. Bonds maturing in 8 to 13 years move more than short ones. |
Gap from the index | Costs, cash and timing can make returns differ from the index. |
No bad-news filter | The fund cannot sell a share the index still holds. |
No track record | This is a new scheme. Returns are not assured. |
Who may consider this fund?
Investor type | Why it may fit |
A first-time investor wanting shares and bonds in one fund | The 70:30 mix is built in. |
A salaried professional in Pune starting a Rs 500 monthly SIP | The minimum SIP is Rs 500. See financial planning for a 25 year old. |
Someone saving for a goal 7 or more years away | The stated aim is long-term growth. The 7-year mark is Zenith’s reading. |
An investor who prefers rules over manager judgement | The index decides every holding. |
Who may not find it suitable?
Investor type | Why it may not fit |
Someone needing money in 1 to 2 years | Mid-caps are 70% of the mix, and exits within 15 days cost 1%. |
An investor wanting assured returns | Returns move with the index and are not assured. |
An investor wanting a manager to avoid weak stocks | This is passive. The fund holds what the index holds. |
Someone already holding several mid-cap funds | The equity part may overlap. |
How does it compare with traditional investment options?
Option | Volatility | Return potential | Liquidity | Horizon | Suitable for |
Fixed deposit | Low | Fixed at booking | Penalty on early exit | Fixed term | Steady income seekers |
Debt mutual fund | Low to moderate | Moderate | Daily | 1 to 3 years | Short-term parking |
Hybrid fund | Moderate | Moderate | Daily | 3 to 5 years | A balanced mix |
Equity mutual fund | High | High, not assured | Daily | 5 years or more | Long-term growth |
This new fund | Moderate to high | Linked to the index | Daily; 1% load within 15 days | 5 years or more | A 70:30 mid-cap and bond mix |
Similar NFOs: Zenith’s own coverage
- HDFC Nifty Large Midcap 250 Plus 8-13 yr G-Sec 70:30 Index Fund: the same equity-plus-G-Sec design, with large and mid-cap shares.
- Mirae Asset Momentum + G-Sec Index Fund: pairs shares with G-Secs on a momentum index.
- Motilal Oswal Nifty REITs & Realty Index Fund: another index fund from the same fund house.
- Axis Nifty50 Equal Weight Index Fund: equity only, with no bond part.
Motilal Oswal Nifty Midcap150 Plus 8-13 yr G-Sec 70:30 Index Fund review by Zenith Finserve
This fund fits a goal 7 or more years away, such as a corpus for 2034 to 2036, where you will not need the money in between. The mid-cap half drives growth. The bond half moves differently and may even things out a little (our interpretation).
Two facts deserve attention. Mid-cap shares can swing hard in short periods, and 8 to 13 year bonds lose value when interest rates climb. Costs of up to 0.90% a year also mean the fund will trail its index slightly.
Think of it as a core holding with a bond portion built in. If you already own mid-cap funds, check for overlap. This is not a recommendation: read the SID and judge suitability against your goals. Learn more about Zenith Finserve.
How Zenith Finserve can help
At Zenith Finserve, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments. We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
To see how we work, read our guide to comprehensive financial management.
Related NFO reading on Zenith
Compare this launch with our notes on the HDFC, Mirae Asset, Motilal Oswal REITs and Axis index funds. New to funds? Start with our guide to mutual funds in India.
Frequently asked questions
1. Is Motilal Oswal Nifty Midcap150 Plus 8-13 yr G-Sec 70:30 Index Fund NFO good to invest in?
That depends on your goal and horizon. It suits long-term investors wanting a mid-cap and bond mix. This is not a recommendation.
2. When does the NFO open and close?
It opens on 12-10-2026 and closes on 26-10-2026.
3. What is the minimum investment?
Rs 500, for lump sum, SIP and additional purchases.
4. What does Motilal Oswal Nifty Midcap150 Plus 8-13 yr G-Sec 70:30 Index Fund invest in?
About 70% in mid-cap shares and 30% in government bonds maturing in 8 to 13 years.
5. Who manages the fund?
Swapnil Mayekar and Dishant Mehta run the equity part. Rakesh Shetty runs the debt part.
6. Is there an exit load?
Yes. It is 1% within 15 days of allotment, and nil after.
7. Is the fund actively managed?
No. It is passive and mirrors its index.
8. How often does the 70:30 mix reset?
Every month, on the last working day.
9. What is the tracking error limit?
The SID expects it within 2% a year in normal conditions.
10. Motilal Oswal Nifty Midcap150 Plus 8-13 yr G-Sec 70:30 Index Fund review: what is Zenith’s view?
It suits a goal 7 or more years away. Details are in the review section above.
