The Motilal Oswal Nifty Microcap 250 Index Fund follows a passive investment strategy by tracking the Nifty Microcap 250 Total Return Index. The fund is designed for investors looking to capitalize on the growth potential of India’s emerging businesses in the microcap segment while maintaining a diversified portfolio.
- About the Motilal Oswal Nifty Microcap 250 Index Fund
- What are Microcaps?
- Basic Details
- Classification Portfolio of the fund
- Fund Managers & Tenure of managing the Scheme
- Investment Details
- Returns Generated
- Risk Factors
- Investment Philosophy
- Taxability of Earnings
(A) About the Motilal Oswal Nifty Microcap 250 Index Fund
This fund objective is to provide returns by replicating the performance of the Nifty Microcap 250 Total Return Index. It invests in the same stocks as the index, ensuring that your investment grows in line with the broader microcap market.
(B) What are Microcaps?
The NSE classifies stocks into four categories based on market capitalization. Large caps cover 60% of the market, midcaps 18%, small caps 9%, and microcaps, which are beyond the top 500, cover only 4%.
(C) Basic Details of Motilal Oswal Nifty Microcap 250 Index Fund
| Fund House | Motilal Oswal Asset Management Company Ltd. |
| Category | Index Fund |
| Launch & Start Date | 05-July-2023 |
| Type | Open-ended |
| AUM | ₹1872.87 Cr (As on 28th Feb 2025) |
| Available at NAV of | ₹14.49 (As on 13th Mar 2025) |
(D) Classification Portfolio of the fund
(i) Top 10 Holdings of the Motilal Oswal Nifty Microcap 250 Index Fund
(ii) Top 10 Sectors Exposures of the Motilal Oswal Nifty Microcap 250 Index Fund
(E) Fund Managers & Tenure of managing the Scheme
(F) Fund – Investment Details
| Motilal Oswal Nifty Microcap 250 Index Fund | |
|---|---|
| Application Amount for fresh Subscription (Lumpsum) | ₹500 |
| Min Additional Investment (SIP) | ₹500 |
| Exit load | 1%* |
| Lock In | No |
| Expense Ratio | 1.07% (As on 28th Feb 2025) |
(G) Returns Generated By The Fund
(H) Risk Factors
Top Drawdowns
This chart illustrates the fluctuations in a mutual fund’s value from March 7th, 2025, to the present as well as its performance. A drawdown occurs when the fund’s value declines from a peak, reaches a new high, and then corrects again. Also, The shaded area represents the duration the fund remained in a drawdown phase.
This chart, consequently, helps investors understand how the fund has reacted to big events in the economy.
(I) Investment Philosophy
The Fund aims for long-term capital appreciation, making it suitable for high-risk investors comfortable with market volatility. By avoiding active stock selection, the fund eliminates human bias and market timing risks, ensuring market-linked returns in India’s dynamic microcap segment.
(J) Taxability on earnings
Taxation
Capital Gains Taxation
- If you sell the mutual fund units after 1 year of investment, you can exempt gains up to Rs 1.25 lakh in a financial year from tax. However, gains exceeding Rs 1.25 lakh will be taxed at 12.5%.
- If the mutual fund units are sold within 1 year from the date of investment, entire amount of gain is taxed at the rate of 20%.
- No tax is to be paid as long as you continue to hold the units.
Dividend Taxation
- Dividends are included in the income of investors and it is also taxed based on their respective tax slabs. Further, if an investor’s dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.
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References: valueresearchonline.com, Industry’s Publications, News Publications, Mutual Fund Company.
Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.
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