Motilal Oswal Mutual Fund (MOMF) has announced the launch of its new fund offer 'Motilal Oswal Nifty Midcap150 Plus 8–13 Yr G-Sec 70:30 Index Fund', an open-ended fund tracking the Nifty Midcap150 index. According to reports from Mint, the NFO period runs from October 12 to October 26, 2026, combining two asset classes in a single, rules-based portfolio with 70% equity and 30% debt through two underlying indices.
The hybrid scheme brings together the growth potential of Midcaps and stability of Government Securities in a single portfolio. As reported by Mint, the equity component comprises the Nifty Midcap 150 Index, which includes the 150 companies ranked 101–250 by full market capitalisation from the Nifty 500 Index, weighted by free-float market capitalisation and reconstituted semi-annually in March and September. The debt component comprises top three liquid G-Secs based on turnover during the month with 8–13 years of residual maturity and more than ₹5,000 crore outstanding, weighted 60% by outstanding amount and 40% by liquidity.
According to Motilal Oswal Asset Management Company (MOAMC), the Nifty Midcap150 Plus 8–13 Yr G-Sec 70:30 Index has delivered strong historical returns. As reported by Mint, the fund has achieved annualised returns of 12.2% over 5 years, 14.0% over 10 years and 15.1% over 15 years, compared to 6.4%, 11.5% and 12.0% respectively for the Nifty 50 TRI. The fund has shown lower volatility with 11.9%, 12.4% and 12.2% for the same periods, against 13.8%, 16.1% and 16.1% for the Nifty 50 TRI. Latest data shows the hybrid index generated 3-years annualized returns of 11.9% while the Nifty 50 index generated returns of 6.1%, demonstrating consistent outperformance across multiple time horizons.
The fund offers minimum application of ₹500 during NFO and ongoing basis for lumpsum, with multiple SIP frequency available. According to Mint, the fund carries an exit load of 1% if redeemed on or before 15 days from allotment, and zero exit load if redeemed after 15 days. The fund will be managed by Swapnil Mayekar (Fund Manager — for Equity component) and Dishant Mehta (Associate Fund Manager — for Equity component), and Rakesh Shetty (Fund Manager — for the debt component). The risk level is classified as 'Very High Risk' based on internal assessment.
The hybrid fund has demonstrated strong market performance, outperforming the Nifty 50 in 10 of 15 calendar-years from 2012 to 2026 YTD and in 80% of rolling 5-year periods. As reported by Mint, the fund has shown maximum drawdown of -27.4% compared to -38.3% for the Nifty 50 Index. The exposure to government securities has prevented the index from seeing large drawdowns during volatile market conditions, with the hybrid index witnessing an annualized volatility of 11.9% over 5 years while the Nifty 50 index was more volatile at 13.8%. The fund is rebalanced monthly to maintain the pre-defined 70:30 allocation, buying more of what has fallen and selling some of what has risen, helping maintain the allocation without requiring market prediction or active asset shifts.
