Motilal Oswal MF Unveils India’s First BSE 1000 Index Fund Backed by IMF Forecasts & Asia Index Insights

Motilal Oswal MF: Motilal Oswal Mutual Fund has announced the launch of the Motilal Oswal BSE 1000 Index Fund, marking a significant milestone in the Indian mutual fund industry. This new offering is India's first index fund that tracks the BSE 1000 Total Return Index, offering investors an opportunity to participate in a broad-based, diversified equity portfolio through a single investment product.

Motilal Oswal BSE 1000 Index Fund NFO

The New Fund Offer (NFO) for the Motilal Oswal BSE 1000 Index Fund will open for subscription on June 5, 2025, and will remain open until June 19, 2025. The fund is an open-ended scheme that aims to mirror the performance of the BSE 1000 Total Return Index. This index comprises the top 1,000 listed companies spanning large-cap, mid-cap, small-cap, and micro-cap segments, collectively accounting for approximately 94% of the total market capitalisation of India's listed equities.

Key Features of Motilal Oswal BSE 1000 Index Fund

Investment Objective: To generate returns that closely correspond to the performance of the BSE 1000 TRI, subject to tracking error

Minimum Investment: Rs 500 during the NFO period and thereafter.

Exit Load: 1% if redeemed within 15 days from the date of allotment; no exit load after 15 days

The fund provides broad-based diversification across 22 sectors, helping investors gain exposure to a wide spectrum of the Indian equity market. To limit concentration risk, the top 10 holdings are capped at around 33% of the portfolio. Additionally, the fund includes allocation to emerging micro-cap companies, offering potential participation in early-stage growth stories.

The Motilal Oswal BSE 1000 Index Fund will be jointly managed by a team of experienced professionals. Swapnil Mayekar will oversee the equity component of the fund, bringing his expertise in passive and index-based strategies. He will be supported by Dishant Mehta, Associate at Equity, who will assist in managing the equity portfolio. The debt component of the fund will be managed by Rakesh Shetty.

The BSE 1000 Total Return Index provides broad exposure to India's equity market through a free-float market-cap-weighted methodology, and it is rebalanced twice a year. This structure enables investors to capture a representative slice of the Indian stock market across various segments.

According to Motilal Oswal Asset Management Company (AMC), the strong outlook for India's economy, as forecasted by the International Monetary Fund (IMF)-with GDP growth projected at 6.2% in 2025 and 6.3% in 2026-reinforces the need for a well-diversified equity investment approach.

Asia Index, the creator of the BSE 1000 Index, emphasized that the index mirrors the growing maturity of India's financial markets. It offers exposure to a balanced mix of established blue-chip firms and up-and-coming companies, reflecting the evolving corporate landscape.