The NFO opens on July 3 and will close on July 17.
The scheme will track a portfolio of 30 midcap stocks selected from the BSE Midcap 150 Index using a momentum-based methodology.
According to the fund house, the index selects stocks based on their 12-month price performance adjusted for volatility. The portfolio is rebalanced quarterly in an attempt to capture changing market trends and momentum leaders within the midcap segment.
The scheme aims to provide returns, before expenses, that correspond to the total returns of the BSE Midcap 150 Momentum 30 Total Return Index, subject to tracking error. However, the fund house noted that there is no assurance that the investment objective will be achieved.
Motilal Oswal Mutual Fund said the strategy combines exposure to India’s midcap segment with a rules-based momentum investing approach. The fund will follow a passive investment strategy, avoiding discretionary stock selection.
Historical data shared by the asset management company showed that the BSE Midcap 150 Momentum 30 Index delivered a compounded annual growth rate (CAGR) of 30.46% over the past five years, compared with 18.31% for the BSE Midcap 150 TRI and 9.88% for the Nifty 50 TRI, as of May 29, 2026.
The minimum investment amount during the NFO period is ₹500 and in multiples of ₹1 thereafter. The same minimum applies for ongoing investments. The scheme will levy an exit load of 1% if units are redeemed within 15 days from the date of allotment, while no exit load will apply after that period.
The equity component of the fund will be managed by Swapnil Mayekar and associate fund manager Dishant Mehta, while Rakesh Shetty will manage the debt component.
Pratik Oswal, Chief of Passive Business at Motilal Oswal Asset Management Company, said the fund is intended to provide investors with a low-cost and transparent way to gain exposure to momentum-oriented midcap stocks through a focused portfolio and periodic rebalancing.
The fund house also highlighted that momentum investing can be sensitive to market volatility and trend reversals. It added that the midcap-focused strategy may involve liquidity risks, impact costs and potential sector concentration during certain market phases.
Motilal Oswal Asset Management Company is part of the Motilal Oswal Group and offers mutual funds, alternative investment funds and portfolio management services.