Motilal Oswal Mutual Fund Launches India’s First BSE 1000 Index Fund.
Banking & Finance
On June 5, 2025, Mumbai-based Motilal Oswal Mutual Fund (MF) launched India’s first BSE 1000 Index Fund, which tracks the BSE 1000 Total Return Index. The New Fund Offer (NFO) for this index fund opened on June 5 and will close on June 19, 2025.
- The Motilal Oswal BSE 1000 Index Fund offers investors broad-based exposure to the Indian equity market by tracking the BSE 1000 Total Return Index. This index covers about 94% of India’s listed market capitalization, encompassing companies from large-cap to micro-cap segments.
- The fund includes a diverse mix of companies across 22 sectors, from established large firms to fast-growing smaller companies. This range spans traditional industries as well as emerging sectors like technology.
- To mitigate concentration risk, the index caps the top 10 stocks at around 33% of the total index weight. It also includes micro-cap companies, whose market size and trading volumes have expanded significantly—five times and fourteen times, respectively, over the past five years.
Main Point :- (i) The BSE 1000 Index is passively managed, based on free-float market value, and is rebalanced twice annually to reflect market changes. This structure helps align the fund’s performance with the index’s returns, subject to minimal tracking error.
(ii) This fund is ideal for investors seeking long-term capital appreciation that closely corresponds with the performance of the BSE 1000 Total Return Index, offering a diversified investment across India’s equity market.
(iii) Key features include a minimum investment of Rs. 500 during the NFO and subsequently. Additionally, an exit load of 1% applies if units are redeemed within 15 days of allotment, but no exit load will be charged for redemptions made after 15 days.
About Motilal Oswal Mutual Fund (MF)
MD & CEO : Prateek Agrawal
Headquarter : Mumbai
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