- Summary
- The 10 Motilal Oswal mutual funds in this 2026 shortlist are ranked by AUM as of 31 July 2026, led by Motilal Oswal Midcap Fund at about ₹40,036 crore.
- Motilal Oswal Nasdaq 100 FOF recorded the highest five-year return among shortlisted schemes with a complete five-year history.
- Nine shortlisted schemes carried a Very High Riskometer label, while Motilal Oswal Arbitrage Fund carried Low risk. All ten schemes showed a ₹500 minimum SIP.
- Motilal Oswal Small Cap Fund, Multi Cap Fund and Arbitrage Fund lacked sufficient history for complete three-year and five-year return comparisons.
The 10 Motilal Oswal schemes shortlisted here are Motilal Oswal Midcap Fund, Large and Midcap Fund, Flexi Cap Fund, Nasdaq 100 FOF, Small Cap Fund, ELSS Tax Saver Fund, S&P 500 Index Fund, Multi Cap Fund, Nifty Midcap 150 Index Fund and Arbitrage Fund.
They are ranked by AUM, not by returns or ratings. The schemes cover active equity, passive, international, tax-saving and arbitrage strategies, so the appropriate choice depends on the investment goal, time horizon and risk level.
Best 10 Motilal Oswal Mutual Funds: Quick Comparison
The ten schemes are ranked by AUM. Returns, risk, benchmark and costs should be considered separately because a larger fund is not necessarily more suitable.
| Rank | Scheme, Direct-Growth | Category | 3Y CAGR | 5Y CAGR | Benchmark | AUM | Direct-plan TER | Minimum SIP | Risk |
| 1 | Motilal Oswal Midcap Fund | Mid Cap | 22.05% | 23.26% | Nifty Midcap 150 TRI | ₹40,036 crore | 0.92% | ₹500 | Very High |
| 2 | Motilal Oswal Large and Midcap Fund | Large & Mid Cap | 24.22% | 19.78% | Nifty LargeMidcap 250 TRI | ₹18,445 crore | 0.88% | ₹500 | Very High |
| 3 | Motilal Oswal Flexi Cap Fund | Flexi Cap | 21.51% | 13.43% | Nifty 500 TRI | ₹13,940 crore | 0.87% | ₹500 | Very High |
| 4 | Motilal Oswal Nasdaq 100 FOF | International FoF | 40.00% | 24.33% | Nasdaq-100 TRI | ₹7,708 crore | 0.20% | ₹500 | Very High |
| 5 | Motilal Oswal Small Cap Fund | Small Cap | N/A | N/A | Nifty Smallcap 250 TRI | ₹7,605 crore | 0.72% | ₹500 | Very High |
| 6 | Motilal Oswal ELSS Tax Saver Fund | ELSS | 23.74% | 18.58% | Nifty 500 TRI | ₹4,784 crore | 0.73% | ₹500 | Very High |
| 7 | Motilal Oswal S&P 500 Index Fund | International Index | 26.92% | 17.87% | S&P 500 TRI | ₹4,500 crore | 0.58% | ₹500 | Very High |
| 8 | Motilal Oswal Multi Cap Fund | Multi Cap | N/A | N/A | Nifty 500 Multicap 50:25:25 TRI | ₹4,492 crore | 1.95% | ₹500 | Very High |
| 9 | Motilal Oswal Nifty Midcap 150 Index Fund | Mid Cap Index | 18.52% | 18.44% | Nifty Midcap 150 TRI | ₹3,911 crore | 0.26% | ₹500 | Very High |
| 10 | Motilal Oswal Arbitrage Fund | Arbitrage | N/A | N/A | Nifty 50 Arbitrage TRI | ₹3,242 crore | 0.53% | ₹500 | Low |
AUM figures in the draft are as of 31 July 2026. Returns were captured between 19 and 21 August 2026. N/A means the scheme had not completed the relevant three-year or five-year period.
Top 10 Motilal Oswal Mutual Funds in India
1. Motilal Oswal Midcap Fund Direct Plan-Growth
At approximately ₹40,036 crore, Motilal Oswal Midcap Fund was the largest scheme in this ranking. Its annualised return was 22.05% over three years and 23.26% over five years.
The fund follows an active approach to mid-sized companies and keeps a comparatively focused portfolio. Kalyan Jewellers, One97 Communications, Eternal, Coforge and Aditya Birla Capital appeared among its larger disclosed holdings.
A focused portfolio can benefit considerably when its main stock selections work. It can also feel the effect more sharply when one or two of those companies disappoint. Mid-cap declines can be deep, and recovery may take time.
2. Motilal Oswal Large and Midcap Fund Direct Plan-Growth
This scheme divides its money between large and mid-sized businesses. Its category requires at least 35% each in large-cap and mid-cap shares.
The fund posted a three-year CAGR of 24.22% and a five-year CAGR of 19.78%. The latter exceeded the corresponding return shown for the Nifty LargeMidcap 250 TRI.
Eternal, One97 Communications, Shriram Finance, Muthoot Finance and Gujarat Fluorochemicals appeared among its prominent portfolio positions.
Large companies can steady part of the portfolio, while mid-sized companies bring a different source of growth. The category’s minimum mid-cap allocation means the fund cannot fully move away from that segment during a correction.
3. Motilal Oswal Flexi Cap Fund Direct Plan-Growth
Unlike categories with compulsory market-cap buckets, a flexi-cap fund can move between large, mid and small companies according to where its managers find opportunities.
Motilal Oswal Flexi Cap Fund reported annualised returns of 21.51% over three years and 13.43% over five years. Its benchmark is the Nifty 500 TRI.
Kalyan Jewellers, Eternal, CG Power, Coforge and Shriram Finance were among its larger disclosed holdings.
That flexibility places considerable weight on the investment team’s decisions. Before buying, investors should check whether the fund’s biggest holdings already appear elsewhere in their portfolios.
4. Motilal Oswal Nasdaq 100 FOF Direct Plan-Growth
Motilal Oswal Nasdaq 100 FOF invests mainly through the Motilal Oswal Nasdaq 100 ETF. It provides access to large non-financial companies listed on Nasdaq.
The scheme’s annualised return was 40.00% over three years and 24.33% over five years. The five-year figure was the highest in this shortlist among funds with a complete record.
The Nasdaq-100 has considerable exposure to American technology and consumer businesses. That can reduce a portfolio’s dependence on India, although it creates reliance on the US market and a relatively small set of large companies.
An Indian investor’s return depends on both the Nasdaq-100 and the rupee-dollar exchange rate. Taxation also differs from an Indian equity-oriented scheme.
5. Motilal Oswal Small Cap Fund Direct Plan-Growth
The allotment took place on 26 December 2023. Only about 32 months of performance existed by August 2026, which was not enough to quote either a full three-year or five-year return.
The scheme invests mainly in small-cap companies. These businesses may have considerable room to expand, but their earnings, liquidity and share prices can be less stable.
A short track record covers only a limited set of market conditions. Investors will need more time to see how the scheme responds to a prolonged decline in small-company shares.
6. Motilal Oswal ELSS Tax Saver Fund Direct Plan-Growth
This ELSS invests primarily in equity and equity-related securities. Each investment remains locked for three years.
The fund recorded a three-year CAGR of 23.74% and a five-year CAGR of 18.58%. Its benchmark is the Nifty 500 TRI.
MCX, Gujarat Fluorochemicals, PTC India, SJS Enterprises and Shaily Engineering Plastics featured among its larger disclosed holdings.
The scheme managed approximately ₹4,784 crore. Its direct-plan expense ratio was 0.64%, and investors could begin with ₹500.
Eligible taxpayers following the old regime may count the investment towards the combined Section 80C deduction limit of ₹1.5 lakh. This deduction is unavailable under the new regime.
An ELSS SIP does not have one common release date. Every monthly instalment must complete three years of its own. An amount invested two years after the first instalment will consequently remain locked for another three years from its individual purchase date.
7. Motilal Oswal S&P 500 Index Fund Direct Plan-Growth
This fund follows the S&P 500 TRI and gives Indian investors access to large businesses listed in the United States.
Its annualised return was 26.92% over three years and 17.87% over five years. Nvidia, Apple, Microsoft, Amazon and Alphabet appeared among the largest holdings.
The S&P 500 covers a broader section of the US large-company market than the Nasdaq-100. It can add geographical variety to a portfolio made up mainly of Indian investments.
Investors remain exposed to US valuations, overseas rules and currency movements. Limits on international fund inflows may also affect fresh purchases from time to time.
8. Motilal Oswal Multi Cap Fund Direct Plan-Growth
A multi-cap fund normally keeps at least 25% each in large-cap, mid-cap and small-cap companies. Its managers can decide where to place the remaining portion.
Motilal Oswal Multi Cap Fund started operations in June 2024. It had not completed three years by August 2026, ruling out both three-year and five-year return comparisons.
One scheme provides access to all three market-cap segments. The same structure requires meaningful exposure to mid-cap and small-cap shares, including during periods when those areas appear expensive.
A longer history is required to understand how the portfolio behaves during an extended market correction.
9. Motilal Oswal Nifty Midcap 150 Index Fund Direct Plan-Growth
This passive scheme attempts to follow the Nifty Midcap 150 TRI before expenses and tracking difference.
It produced annualised returns of 18.52% over three years and 18.44% over five years. Its five-year result remained fairly close to the corresponding benchmark figure.
BSE, Federal Bank, Laurus Labs, Hero MotoCorp and MCX appeared among its disclosed holdings. The portfolio spreads money across 150 index constituents, making it less concentrated than many active mid-cap strategies.
Passive management reduces dependence on individual stock calls. It does not remove mid-cap risk. The fund must also follow the index weights even if some constituents appear expensive.
10. Motilal Oswal Arbitrage Fund Direct Plan-Growth
The scheme was allotted on 23 December 2024. That left it with less than two years of history in August 2026. A three-year performance figure was not yet possible, let alone a five-year one.
The fund looks for price differences between shares and their futures contracts. It may buy a share in the cash market and take the opposite futures position at the same time. The paired trade reduces dependence on whether the share itself rises or falls.
Its portfolio also held certificates of deposit, treasury bills, money-market securities and units of Motilal Oswal’s liquid and ultra-short-term schemes.
It was the only shortlisted scheme carrying a Low Riskometer label. That does not promise a fixed return. Available spreads may shrink, and redemptions made within 15 days attracted an exit load of 0.25%.
How We Selected These Motilal Oswal Funds
The shortlist covers ten Motilal Oswal mutual fund schemes with direct plans, excluding ETFs. The mutual funds are arranged by AUM as of 31 July 2026 rather than by returns or ratings.
For each scheme, the review considers its category, benchmark, available three-year and five-year returns, direct-plan expense ratio, minimum SIP, Riskometer, portfolio and inception date. Scheme details should be verified against the latest official disclosures before publication.
AUM is used only to determine the order of this list. A larger AUM does not by itself indicate better performance or suitability.
Motilal Oswal Funds vs Other Fund Categories
Motilal Oswal is an asset management company, not a single fund category. Its schemes follow different strategies and cannot be judged by putting their returns next to one another.
| Type of fund | Where the money goes | Point to watch | Possible use |
| Mid-cap | Medium-sized Indian companies | Price swings and expensive valuations | Long-term growth |
| Flexi-cap | Companies of different sizes | Manager’s allocation and stock calls | Active diversified equity |
| Small-cap | Smaller listed businesses | Deeper corrections and lower liquidity | Limited high-risk allocation |
| ELSS | Equity with a three-year lock-in | Money remains inaccessible | Equity with possible tax deduction |
| International | Overseas shares or ETFs | Currency, overseas market and tax rules | Geographical diversification |
Benefits and Risks of Motilal Oswal Mutual Funds
The range covers active stock selection, passive indices, overseas markets and arbitrage trades. A ₹500 starting SIP also allows investors to begin without committing a large amount at once.
The source of risk changes from one product to another. Active funds depend on portfolio concentration and the investment team’s decisions. Index schemes move with their benchmarks and can lag them slightly after expenses.
For the overseas funds, US markets and the rupee-dollar exchange rate both matter. ELSS investors temporarily give up access to their money. Arbitrage has less exposure to stock-market direction, although smaller cash-futures spreads can pull its returns down.
Buying several schemes from the same AMC does not necessarily create a diversified portfolio. Their holdings or investment ideas may overlap.
Who Should Consider and Avoid Motilal Oswal Funds?
Consider these funds if:
- The selected scheme matches the investment goal and available holding period.
- Equity investors can tolerate market declines and remain invested for a longer period.
- ELSS investors using the old tax regime are comfortable with the three-year lock-in on each investment.
- Arbitrage investors understand that returns depend on available market spreads and are not fixed.
Avoid or reconsider them if:
- The money is required in the near term.
- A temporary decline would force an early withdrawal.
- A guaranteed or fixed return is required.
- The new scheme substantially duplicates existing portfolio holdings.
How to Choose a Motilal Oswal Mutual Fund
Start with the goal and time horizon: A long-term equity goal requires a different category from money needed within a short period.
Compare the right category: Do not compare a small-cap fund directly with an arbitrage or international fund simply because one has delivered a higher return.
Check returns and benchmark: Compare performance with the relevant benchmark across more than one period.
Review risk: Check the Riskometer and the type of market exposure taken by the scheme.
Study the portfolio and management: Look at concentration, major holdings, portfolio overlap and the fund-management approach.
Compare costs: Consider the direct-plan expense ratio and any exit load alongside the other factors.
SIP vs Lump Sum for Motilal Oswal Funds
| Factor | SIP | Lump Sum |
| Investment timing | Money is invested at regular intervals | The amount is invested at one time |
| Cash flow | Can fit regular monthly income | Suits money already available for investment |
| Market entry | Purchases happen across different dates | Entire amount enters at the prevailing market level |
| Market risk | Does not remove the scheme’s market risk | More sensitive to the market level at the time of investment |
An SIP changes the timing of purchases, not the underlying risk of the fund. Units accumulated through earlier instalments can still lose value when the market falls.
A lump-sum investment enters the scheme at one time. An investor who does not want to deploy a large amount together may divide it into several instalments instead.
Direct vs Regular Motilal Oswal Funds
| Factor | Direct Plan | Regular Plan |
| Portfolio | Same scheme portfolio | Same scheme portfolio |
| Fund manager | Same | Same |
| Distributor | No distributor required | Investment routed through a distributor |
| Expense ratio | Lower | Higher because distribution costs are included |
| NAV | Separate NAV | Separate NAV |
| Investor involvement | More self-directed | Distributor assistance is available |
Direct and regular plans invest in the same underlying portfolio. The main difference is how the investment is made and the cost attached to the plan.
A direct plan does not include distributor commission, so its expense ratio is lower. A regular plan includes distribution costs in the scheme expenses.
Taxation of Motilal Oswal Mutual Funds
Domestic equity-oriented schemes and qualifying arbitrage funds generally follow equity mutual fund capital-gains rules. Gains on eligible units held for up to 12 months are taxed as short-term capital gains at 20%. For holdings above 12 months, eligible long-term gains exceeding the ₹1.25 lakh annual exemption are taxed at 12.5%.
ELSS follows the same capital-gains framework, although each investment has a three-year lock-in. Eligible taxpayers using the old tax regime can also claim qualifying ELSS investments within the combined ₹1.5 lakh Section 80C limit.
The Nasdaq 100 FOF and S&P 500 Index Fund are not domestic equity-oriented funds for tax purposes. Under the applicable rules, a holding period above 24 months can qualify for long-term treatment at 12.5%, while shorter-period gains are generally taxed at the applicable slab rate. Scheme classification and the acquisition date should be checked before calculating tax.
Other Best Mutual Fund Categories
FAQs
Based on the five-year returns shown in this comparison, the leading funds with a complete five-year record were Nasdaq 100 FOF, Midcap Fund, Large and Midcap Fund, ELSS Tax Saver Fund and Nifty Midcap 150 Index Fund.
Suitability depends on the fund category, investment goal, holding period, existing portfolio and ability to handle market risk. The AMC name or recent return alone should not determine the choice.
Motilal Oswal Nasdaq 100 FOF had the highest five-year return in this shortlist at 24.33%.
Choose the category first, then compare its returns, benchmark, Riskometer, expenses, portfolio, fund-management approach and overlap with existing investments.
The relevant scheme should match the investor’s goal, holding period and ability to tolerate the risk associated with that fund category.
Among the 10 funds shortlisted in this article, Motilal Oswal Nasdaq 100 Fund of Fund Direct-Growth recorded the highest one-year return at 62.16% as of 31 August 2026.
No. Mutual fund returns and capital are not guaranteed. Nine schemes in this shortlist carried a Very High Riskometer label, while the Arbitrage Fund carried Low risk.
They serve different purposes. Mutual fund returns are market-linked and depend on the scheme, while an FD provides a predetermined interest rate and has a different risk and liquidity profile.
