Motilal Oswal Midcap Fund – Complete Guide Performance, Strategy & Benefits

• Sushil Bajaj |
• 16 September 2025 |

What is a Midcap Fund?

A midcap fund is an equity mutual fund that primarily invests in mid-sized companies — usually ranked between 101st to 250th by market capitalization in India. These companies are often in the growth stage, offering a balance between the stability of large caps and the high-risk/high-return potential of small caps.

Key Features of Midcap Funds:

• Ideal for those seeking wealth creation with moderate risk appetite
• Higher growth potential than large caps
• More volatility than large-cap funds, but lower than small caps
• Suitable for investors with medium-to-long-term horizons (5+ years)

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Quick Snapshot of Motilal Oswal Midcap Fund

Particulars	Details
Fund Name	Motilal Oswal Midcap Fund
Fund House	Motilal Oswal Mutual Fund
Category	Equity – Midcap
Launch Date	February 2014
Fund Manager(s)	Nikhil Rungta (Equity)
Benchmark	Nifty Midcap 150 TRI
Minimum Investment (SIP)	₹500
Minimum Lumpsum Investment	₹1,000
Expense Ratio	Varies
Exit Load	1% if redeemed within 1 year

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The primary objective of the Motilal Oswal Midcap Fund is to achieve long-term capital appreciation by investing in quality mid-sized companies that demonstrate high growth potential and strong fundamentals. The fund focuses on companies with sustainable competitive advantages, scalable business models, and consistent earnings growth.

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Benchmark Details

Benchmark Index: Nifty Midcap 150 TRI

Represents the top 150 midcap companies listed on NSE.

Provides a fair comparison for performance measurement against the broader midcap universe.

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Fund Performance v/s Benchmark Performance

Period/Returns	Motilal Oswal Midcap – Growth	Nifty Midcap 150 TRI
1 Year	-1.08%	-4.83%
5 Year	33.89%	27.61%
Since Inception	18.31%	17.37%

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Key Portfolio Takeouts

Top Holdings

Portfolio Allocations

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Broad Framework

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Investment Style & Strategy

The fund adheres to the Buy Right: Sit Tight philosophy of the AMC.

Key components of the strategy are:

• Bottom-up stock selection on fundamentals
• Focus on businesses with sustainable moats and high return ratios
• Long-term holding strategy rather than frequent churn.
• Concentrated Portfolio Approach with Selective Allocation
• Sectoral diversification to minimize concentration risk
  
  

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Here’s how this fund may be a possible addition to your portfolio:

• Growth Potential – Midcap firms can be tomorrow’s large caps.
• Active Management – Leveraging Motilal Oswal’s research-based investment process.
• Long-Term Wealth Creation – Focuses on compounding returns through holding quality businesses.
• Diversification – Exposure to different high-growth sectors.
• Appropriate for Moderate Risk Investors – Suitable for investors who are comfortable taking some volatility for greater returns.

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🔗 How to Invest Online?

You can easily invest through our online investment platform.

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Dealing with the pain points of investors

• Market Volatility: Midcaps are more volatile than large caps. Investors need to be patient and invest for a minimum of 5–7 years.

• Liquidity Concerns: The midcap stocks might be less liquid than the large caps, but fund managers actively oversee this.

• Concentration Risk: The fund has a fairly concentrated portfolio; diversification within your overall portfolio is a necessity.

• Return Expectations: While historic returns are appealing, investors should have realistic expectations and not pursue short-term results.

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Q1: Who can invest in Motilal Oswal Midcap Fund?
Investors with high risk appetite and a long-term view (5+ years).

Q2: Is this fund appropriate for SIP investments?
Yes, as SIPs help in lowering the volatility risk and averaging the cost of purchasing over time.

Q3: How much riskier is a midcap fund compared to large cap funds?
Midcap funds are riskier than large cap funds but less risky than small cap funds, having a balanced return potential.

Q4: Can I redeem at any time?
Yes, but if you redeem in 1 year, there is an exit load of 1%. For optimal performance, hold long term.

Q5: How much to invest?
This will depend on your financial goals, risk profile, and current asset allocation. A financial advisor can assist in matching the amount.

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Motilal Oswal Midcap Fund may be a good option for investors looking for long-term wealth generation through India’s expanding mid-sized businesses. With a concentrated strategy, research-oriented approach, and robust performance history, it has the potential for impressive returns.

Disclaimer:- Mutual Fund investments are subject to market risks, please read scheme related documents carefully before investing.