Motilal Oswal Mutual Fund has announced the launch of the Motilal Oswal BSE Clean Environment Index Fund, a new open-ended index fund.
The New Fund Offer (NFO) for this scheme is now open, providing prospective investors with an opportunity to participate in the fund from the outset.
The subscription period runs from June 5, 2026, to June 19, 2026, with the scheme scheduled to re-open for ongoing transactions on July 2, 2026.
The fund aims to generate returns that correspond, before expenses, to the total returns of the securities represented by the BSE Clean Environment Index.
The fund offers a thematic investment avenue for those interested in the environmental infrastructure space by focusing on sectors such as clean energy, water management, and waste management.
Motilal Oswal BSE Clean Environment Index Fund NFO Details
Feature | Details |
Fund Name | Motilal Oswal BSE Clean Environment Index Fund |
Fund Type | Open-ended fund replicating/tracking the BSE Clean Environment Index |
Category | Index Fund |
Benchmark | BSE Clean Environment Total Return Index |
Fund Managers | Mr. Swapnil Mayekar, Mr. Dishant Mehta, and Mr. Rakesh Shetty (Debt Component) |
NFO Open Date | June 05, 2026 |
NFO Close Date | June 19, 2026 |
Allotment/Reopening Date | July 02, 2026 |
Minimum Investment | ₹ 500/- |
Additional Investment | ₹ 500/- |
SIP | ₹ 500/- |
NAV | ₹ 10 per unit |
Stamp Duty | 0.005% |
Entry Load | Nil |
Exit Load | 1% if redeemed on or before 15 days; Nil if redeemed after 15 days |
Company Details
Feature | Details |
AMC Name | Motilal Oswal Asset Management Company Limited |
AUM | ₹1,52,186 Crores |
Website | |
amc@motilaloswal.com | |
Address | 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opp. Parel ST Depot, Prabhadevi, Mumbai-400025 |
Contact Number | +91 8108622222 and +91 22 40548002 |
Source: AMFI New Fund Offer
What has Motilal Oswal launched?
Motilal Oswal has launched the Motilal Oswal BSE Clean Environment Index Fund, which is an open-ended passive investment scheme.
The fund is designed to replicate the BSE Clean Environment Total Return Index, providing investors with exposure to companies primarily engaged in activities such as clean energy, water management, waste management, and recycling.
How does the strategy work?
The fund employs a passive investment strategy, meaning it does not aim to outperform the index but rather to track its performance as closely as possible, subject to tracking error.
Motilal Oswal BSE Clean Environment Index Fund NFO Investment Process
Step | Action |
1 | The fund identifies the constituents of the BSE Clean Environment Index. |
2 | It allocates 95%-100% of its assets into these securities in the same weightage as the index. |
3 | Up to 5% of assets may be held in liquid/debt/money market instruments to manage liquidity. |
4 | The fund manager continuously monitors the portfolio to minimize tracking error caused by expenses or corporate actions. |
Let’s see through an example
If the BSE Clean Environment Index consists of 25 specific companies, this fund will hold all these 25 stocks in the same proportions as they appear in the index. If a company represents 10% of the index, the fund will aim to hold approximately 10% of that stock in its portfolio, allowing investors to effectively mimic the index’s performance.
Potential benefits of investing in Motilal Oswal BSE Clean Environment Index Fund NFO
Potential Benefit | Why it matters |
Thematic Exposure | Provides access to a focused group of companies in the clean environment sector. |
Passive Management | Lower management intervention compared to active funds, generally leading to lower costs. |
Diversification | Offers a structured way to diversify equity portfolios into the green energy and sustainable infrastructure space. |
Transparency | As an index fund, the portfolio composition is clearly defined by the underlying index. |
What are the key risks of ivesting in Motilal Oswal BSE Clean Environment Index Fund NFO?
Risk | What does it mean? |
Market Risk | The value of investments may fluctuate based on overall stock market movements. |
Concentration Risk | Exposure to a single theme (clean environment) may lead to higher volatility compared to a diversified fund. |
Tracking Error Risk | The fund’s returns may deviate slightly from the index due to fees, expenses, or market conditions. |
Passive Investment Risk | The fund will hold all index constituents, even those performing poorly, as it does not actively select stocks. |
Who may consider this fund?
Investor Type | Why |
Long-term Investors | Suitable for those seeking long-term capital growth through a specific theme. |
Thematic Seekers | Investors are specifically looking for exposure to sustainability and clean environment activities. |
Passive Investors | Those who prefer the simplicity and transparency of index-based investing. |
Who may not find it suitable?
Investor Type | Why |
Short-term Investors | High volatility associated with thematic equity may not be appropriate for short-term goals. |
Conservative Investors | The fund carries “Very High” risk, making it unsuitable for those seeking capital protection. |
Active Stock Seekers | Those looking for professional fund managers to outperform the market through stock selection. |
Motilal Oswal BSE Clean Environment Index Fund vs Traditional Investment Options
Investment | Return Potential | Risk | Complexity |
Fixed Deposit | Low | Low | Low |
Debt Mutual Fund | Moderate | Low/Moderate | Low |
Hybrid Mutual Fund | Moderate/High | Moderate | Moderate |
Equity Mutual Fund | High | High | Moderate |
New Fund (Clean Environment) | High | Very High | Moderate |
Zenith Finserve’s view
The Motilal Oswal BSE Clean Environment Index Fund offers a niche investment opportunity for those interested in the sustainable development sector.
As a passive, thematic fund, it carries “Very High” risk, and investors should be prepared for volatility inherent in sector-specific equity exposure.
This fund should ideally be a small satellite portion of a well-diversified portfolio rather than a core holding.
Investors should evaluate their own risk tolerance, investment horizon, and whether this theme aligns with their long-term financial goals before proceeding.
How can Zenith Finserve help?
Zenith Finserve can assist you in reviewing your current portfolio to see if thematic index funds fit your overall strategy.
We help you understand the risk-reward dynamics and determine if your investment horizon matches the long-term nature of this theme.
We do not provide specific buy or sell recommendations but offer the clarity needed to make your own informed investment decisions.
Frequently Asked Questions (FAQs)
What is the minimum amount required to invest in this NFO?
The minimum application amount is ₹ 500/- and in multiples of Re. 1/- thereafter.
Is this an actively managed fund?
No, this is a passively managed index fund that replicates the BSE Clean Environment Total Return Index.
What is the risk profile of this scheme?
The scheme is labeled as “Very High” risk.
Are there any exit charges?
Yes, an exit load of 1% is applicable if units are redeemed on or before 15 days from allotment.
What happens if I need to withdraw my money?
The scheme offers liquidity on an ongoing basis on all business days at the applicable Net Asset Value (NAV).
Does the fund guarantee returns?
No, there is no assurance or guarantee that the investment objectives of the scheme will be achieved.
Can I invest through a Systematic Investment Plan (SIP)?
Yes, the fund offers various SIP frequencies including daily, weekly, fortnightly, monthly, and quarterly.
Where can I find the fund’s portfolio details once it starts?
Portfolio details will be disclosed on the Motilal Oswal Mutual Fund and AMFI websites on a monthly basis.
