In the last one year, the Indian equity market has experienced multiple bouts of volatility. Benchmark indices Sensex and Nifty hit all-time highs at the end of September last year, only to plunge to 52-week lows by early April this year. A combination of domestic and, more notably, global headwinds—particularly in the first three months of 2025—pulled Indian markets down significantly. As a result, the Sensex and Nifty have delivered a modest return of just over 5% in the past one year.
This tumultuous ride in the equity market has had a direct impact on mutual funds as well, especially those investing in equity schemes, where returns took a hit before recovering over the last two months.
Despite the market turbulence, some mutual funds have still managed to perform reasonably well over the past year. However, our selection is not based on one-year returns alone. We believe that choosing a fund purely based on recent performance can often prove costly for investors.
In this review, we have considered multiple parameters—including fund ratings, expense ratios, and returns over both one-year and three-year periods—while evaluating three Motilal Oswal mutual funds.
When selecting mutual funds, factors such as long-term track record, consistency, fund rating, and expense ratio are just as important as returns. Investors should look for schemes that not only deliver good performance but also demonstrate strong fund management, effective risk control, and cost efficiency.
Here, we have shortlisted three Motilal Oswal mutual funds based on a combination of three key metrics—low expense ratio, strong ratings, and consistent returns. Take a look at these top-performing schemes, each of which holds either a 5-star or 4-star rating from Value Research.
1. Motilal Oswal Large and Midcap Fund – Direct Plan
Ratings: 5-star
Expense Ratio: 0.66%
AUM: Rs 10,840 crore
1-year return: 13.68%
3-year return: 36.32% CAGR
5-year return: 31.93% CAGR
2. Motilal Oswal Midcap Fund – Direct Plan
Ratings: 5-star
Expense Ratio: 0.70%
AUM: Rs 30,401 crore
1-year return: 9.47%
3-year return: 37.43% CAGR
5-year return: 38.05% CAGR
3. Motilal Oswal ELSS Tax Saver Fund – Direct Plan
Ratings: 4-star
Expense Ratio: 0.64%
AUM: Rs 4,360 crore
1-year return: 8.36%
3-year return: 34.10% CAGR
5-year return: 29.10% CAGR
(Data: Value Research)
These schemes with low expense ratio and high ratings have delivered consistent high returns in the long term.
Again, investors are cautioned that investing in a fund solely based on recent good returns is not advisable. Returns should not be the only reason for investment. It is important to check whether the fund has consistently performed well over time or if the recent gains are merely due to favorable market conditions. Additionally, consider who is managing the fund, their experience, the fund’s asset under management (AUM), its expense ratio, and the stocks or sectors it invests in. All these factors together determine how sustainable and prudent your investment will be.
Remember, a good fund is not the one that is shining just now, but the one that keeps giving better returns in the long run despite facing fluctuations.
