Motilal Oswal Launches Four New Index Funds Targeting Mid & Small-Cap Growth

Motilal Oswal Mutual Fund has introduced four new index funds, targeting growth within mid and small-cap sectors, aimed at investors with a high-risk appetite. The new offerings are the Motilal Oswal Nifty MidSmall Healthcare, IT and Telecom, India Consumption, and Financial Services Index Funds. These funds are now open for subscription from October 29 to November 6.

Recent research by Motilal Oswal Asset Management Company reveals that mid and small-cap companies have shown substantial growth over large-caps in recent years. Specifically, mid-caps saw a market cap increase of 25.7%, and small-caps surged by 28.0%, compared to 19.1% growth for large-caps. Profitability in these sectors has also accelerated, with small-cap profits up by 35.4%.

These index funds are benchmarked against their respective Nifty MidSmall sector indices, offering investors a chance to potentially achieve returns that match these high-growth areas. Each fund is managed by Swapnil Mayekar (equity) and Rakesh Shetty (debt). The company’s leadership emphasizes the robust growth potential in mid and small-caps within sectors like healthcare, IT, and financial services, though these come with higher volatility and are best suited for risk-tolerant investors.