Motilal Oswal Mutual Fund has filed a draft Scheme Information Document (SID) for a proposed index fund tracking the BSE Midcap 150 Momentum 30 Total Return Index. The scheme is structured as an open-ended fund and will aim to replicate the index, subject to tracking differences.
The stated objective is to generate returns corresponding to the index before expenses. The document notes that actual returns may vary, and there is no assurance of achieving the objective.
The scheme will invest predominantly in equities forming part of the index, with allocation set between 95% and 100%. Up to 5% of assets may be held in liquid schemes or money market instruments to meet liquidity requirements.
It will follow a passive strategy, holding securities in the same proportion as the index. Equity derivatives may be used for short-term needs such as rebalancing, with exposure capped at 20% of net assets.
The scheme will not invest in securitised debt, credit default swaps, foreign securities or structured obligations, as outlined in the draft document.
Units will be offered at ₹10 during the new fund offer (NFO), which will remain open for at least 3 working days and not more than 15 days.
The minimum application amount is ₹500 for lump sum investments. For systematic investment plans, the minimum starts at ₹100 for daily frequency and ₹500 for other options.
An exit load of 1% will apply if units are redeemed within 15 days of allotment, while no exit load will be charged after this period. Redemption proceeds are to be processed within 3 working days.
The scheme will offer direct and regular plans with a growth option. Net asset value will be disclosed on all business days. Units are not proposed to be listed on stock exchanges at present.
Funds collected during the NFO are required to be deployed within 30 business days, with provisions for extension under regulatory conditions. The scheme will also adhere to exposure limits and rebalancing timelines prescribed under regulations.
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The draft document sets out the structure, investment limits and operational conditions for a passive fund tracking a midcap momentum index, in line with applicable regulatory norms.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal 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 the related documents carefully before investing.
Published on: Apr 22, 2026, 3:11 PM IST
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