Motilal Oswal MF Launches Multi Factor Passive Fund of Funds; NFO Open Till March 6

Motilal Oswal Mutual Fund has launched the Motilal Oswal Multi Factor Passive Fund of Funds, an open-ended scheme investing in passively managed factor-based ETFs and/or index funds. 

The New Fund Offer (NFO) is open for subscription until March 6. The scheme is designed to provide diversified exposure through a rule-based investment framework, focusing on long-term capital appreciation.

The fund will benchmark its performance against the Nifty 500 Total Return Index. The minimum subscription amount during the NFO and on an ongoing basis is ₹500, with investments allowed in multiples of ₹1 thereafter. Investors can opt for multiple SIP options. The exit load is 1% if redeemed within 15 days from allotment and nil thereafter.

Multi-Factor Investment Approach

The scheme follows an equal-weighted multi-factor strategy, allocating 25% each to four investment factors: Value, Quality, Low Volatility, and Momentum. 

These allocations are reviewed quarterly and rebalanced only if any factor deviates by more than 5% from its target weight. Factor investing focuses on measurable stock characteristics that have historically shown differences in returns compared to the broader market.

According to the fund house, the multi-factor framework aims to address the challenge of predicting which single factor may outperform at a given time. By combining multiple factors with relatively low correlation and minimal stock overlap, the scheme seeks to enhance diversification while reducing reliance on discretionary calls.

Fund Management and Positioning

The equity component of the scheme will be managed by Swapnil Mayekar as Fund Manager and Dishant Mehta as Associate Fund Manager. The debt component will be managed by Rakesh Shetty. The fund is positioned for investors seeking systematic, rule-based exposure to multiple equity factors through passive instruments.

Also Read: Best Gold ETFs Based on 6-Month Returns in Feb 2026!

Conclusion

The Motilal Oswal Multi Factor Passive Fund of Funds offers a structured and diversified way to access factor investing via ETFs and index funds. While the strategy aims to balance different market cycles, investors should note that there is no assurance that the investment objective will be achieved, and returns will depend on market conditions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.