NFO Period: 5th June – 19th June 2025
Motilal Oswal BSE 1000 Index Fund NFO: Motilal Oswal Asset Management Company (MOAMC) has launched a new index fund that aims to capture the entire Indian equity market in a single product. Presenting the Motilal Oswal BSE 1000 Index Fund – a low-cost, passive investment tool tracking a broad-based benchmark of 1000 listed Indian companies.
If you’re looking for maximum diversification, low expenses, and long-term growth, this new fund could be worth your attention.
What is the BSE 1000 Index?
The BSE 1000 Total Return Index (TRI) is a comprehensive benchmark that covers the top 1000 companies listed on BSE based on free-float market capitalization. These companies come from all segments:
- Large-cap (top 100)
- Mid-cap (next 150)
- Small-cap (next 400)
- Micro-cap (last 350)
Together, they represent around 94% of India’s total listed market cap, offering exposure to nearly every sector and business type in India
Key Features of the NFO
| Particulars | Details |
|---|---|
| Fund Name | Motilal Oswal BSE 1000 Index Fund |
| NFO Opens | 5th June 2025 |
| NFO Closes | 19th June 2025 |
| Benchmark | BSE 1000 TRI |
| Fund Type | Open-ended Index Fund |
| Minimum Investment | ₹500 |
| Exit Load | 1% if redeemed within 15 days, Nil afterwards |
| Expense Ratio | Expected around 0.3%-0.5% for Direct Plan |
Why is This Fund Unique?
True Market Representation
Unlike Nifty 50 or Sensex funds that cover only large-cap stocks, this index gives you access to India’s entire listed universe, including mid, small, and micro-cap stocks.
Rule-Based and Transparent
The fund passively tracks the BSE 1000 TRI with no active stock-picking. This ensures transparency, low cost, and rule-based investing.
Reduced Concentration Risk
The index is capped in such a way that the top 10 stocks don’t dominate the portfolio. This ensures better diversification and avoids over-reliance on a few large companies.
Microcap Exposure
Around 25% of the index is made up of small and microcap stocks, giving investors a chance to benefit from India’s emerging businesses without taking single-stock risk.
Who Should Consider This Fund?
- Long-term Investors: Those looking to stay invested for 5+ years and benefit from India’s economic growth.
- Passive Enthusiasts: Investors who prefer market-based returns with minimal fund manager intervention.
- Diversification Seekers: Great for people who want to avoid choosing multiple funds to cover different market caps.
-
Young & New Investors: An excellent starting point to build a core portfolio with just ₹500.
Risks to Keep in Mind
- Higher Volatility: Inclusion of micro and small-caps may increase fluctuations in short periods.
- Tracking Error: Since the index has 1000 stocks, there may be minor deviations from benchmark returns.
- Liquidity Challenges: Microcap stocks are sometimes less liquid, which could affect fund performance during volatility.
Potential Advantages
- One fund to access the entire Indian equity market
- Low expense ratio compared to active funds
- No stock-picking or fund manager bias
- Easy to understand, rule-based approach
- Ideal for building long-term wealth.
Expert Perspective
According to fund managers, India is poised for long-term growth driven by domestic consumption, digital transformation, and macroeconomic reforms. This fund is designed to capture growth stories across the board—from IT giants to upcoming startups.
By investing in the Motilal Oswal BSE 1000 Index Fund, you’re not betting on just a few companies or sectors—you’re investing in India itself.
Should You Invest?
If your investment objective is to:
- Build wealth slowly and steadily
- Avoid the hassles of stock selection
- Have exposure to India’s full economic growth
… then this fund could be a great addition to your core portfolio.
However, if you are risk-averse, or have a short-term horizon, the volatility from micro/small caps might not suit you.
How to Invest
You Can Also Connect to us to get any help for investment and Financial Planning.
Final Thoughts
The Motilal Oswal BSE 1000 Index Fund is a fresh and promising option for investors who want an all-in-one equity fund. It balances risk through diversification and offers an easy way to ride India’s growth wave—without managing multiple funds.
“As always, make sure to align the investment with your goals, risk appetite, and time horizon. Consulting a financial advisor before investing is highly recommended.”
