Motilal Oswal Nifty Midcap 150 Index Fund has turned every ₹1 lakh into about ₹2.9 lakh in just 5 years, thanks to a powerful 23–24% CAGR – but that past return alone is not a guarantee for the next 5–10 years. For smart investors, the real edge is to understand what this fund actually does, its cost, its risk, and whether it fits your goals before jumping in.
This is a pure index fund that simply copies the Nifty Midcap 150 index – it does not try to “beat” the market; it just mirrors India’s top 150 midcap companies. The direct-growth plan has delivered roughly 22–24% annualised returns over 5 years, making it one of the best performers in the index-fund category over that period.
The fund was launched in 2019 and today manages around ₹2,900+ crore of investor money, showing high trust and scale in the midcap passive space. It suits investors who want equity growth, are okay with heavy volatility, and prefer rules-based, low-cost investing instead of star stock-pickers.
Motilal Oswal Asset Management sits inside Motilal Oswal Financial Services, founded in 1987 by Motilal Oswal and Raamdeo Agrawal as a small broking outfit. From two founders with almost no capital, the group has grown into a large listed financial-services house with businesses in broking, wealth, asset management, and more.
The mutual fund arm (MOAMC) was set up in 2010 and has built a strong name in both active and passive products, with Pratik Oswal leading the passive and quant funds platform. This background matters because when you buy this index fund, you are trusting their systems, tracking ability, and long-term commitment to passive investing.
Motilal Oswal as a group earns from broking, mutual funds, PMS, wealth management, and investment banking, but for you as an investor in this specific fund, the key is low cost and faithful index tracking. The fund offers SIP starting from about ₹500, making it easy for small investors to slowly build exposure to India’s midcap growth story.
Why returns were so high?
Midcaps as a segment have enjoyed a strong bull run driven by:
Fast earnings growth in sectors like capital goods, services, auto, healthcare, and manufacturing.
Strong domestic flows into equity mutual funds and a broad rally beyond largecaps.
Because this index fund simply tracks the Nifty Midcap 150, it rode this entire wave, giving roughly 190% absolute returns over 5 years in some calculations, which converts to around 23–24% CAGR. But remember: these returns came after a great midcap cycle; future returns can be lower, especially if there is a correction.
