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Motilal Oswal MF launches India's first BSE 1000 index fund to broaden market access

09-Jun-25 12:25 Hrs IST

Motilal Oswal Mutual Fund has introduced the Motilal Oswal BSE 1000 Index Fund, a new fund offer (NFO) set to run from June 5 to June 19, 2025. The open-ended scheme is the first in India to track the BSE 1000 Total Return Index, aiming to offer investors wide-ranging exposure to India's equity markets through a single passive investment vehicle.

The BSE 1000 Total Return Index represents the top 1,000 listed companies in India, covering approximately 94% of the country's listed market capitalization. The index spans across large-, mid-, small-, and micro-cap stocks, and reflects the performance of 22 sectors, ranging from traditional industries to technology-driven enterprises. With a cap of ~33% on the top 10 stocks, the index structure aims to minimize concentration risk and deliver diversified exposure.

The fund's investment objective is to provide returns that closely correspond to the total returns of the BSE 1000 index, subject to tracking error. Investors can participate with a minimum lump sum of Rs 500, while exit load is 1% if redeemed within 15 days from allotment and nil thereafter.

Commenting on the launch, Pratik Oswal, chief of' passive business, Motilal Oswal Asset Management Company: We are proud to launch India's first index fund tracking the BSE 1000 Total Return Index, giving investors access to India's largest and most inclusive equity index. This fund aims to captures the performance of 1,000 companies spanning large, mid, small, and micro-cap companies across 22 sectors. It provides a diversified exposure to India's corporate sector and is a natural evolution for investors seeking a passive investment option. As pioneers in passive investing, our goal is to offer simple, low-cost, and scalable investment options, and this launch aligns with that objective.

The launch comes at a time when India's macroeconomic outlook remains strong. Citing IMF projections, MOAMC expects India's GDP to grow at 6.2% in 2025 and 6.3% in 2026, supported by a mix of domestic demand, policy reforms, and structural shifts across key industries.

For investors seeking broad-based, passive exposure to India's equity story through a diversified and low-cost strategy, the Motilal Oswal BSE 1000 Index Fund offers a new point of entry aligned with India's long-term economic vision.