Money and investments can be exciting to learn about. Today, we’ll explore the Motilal Oswal Midcap Fund Direct Growth. This is a mutual fund in India that lots of people want to know about. We’ll explain what it is, how it works, and share facts in easy words. This article gives only information—no advice on what you should do with your money.
What Is Motilal Oswal Midcap Fund Direct Growth?
A mutual fund is like a big piggy bank where many people pool their money. A smart person manages it and uses the cash to buy things like company stocks. The Motilal Oswal Midcap Fund Direct Growth is one of these piggy banks. It’s run by Motilal Oswal Mutual Fund, a company in India helping people grow their savings. This fund began on February 24, 2014, so it’s been around for over 11 years as of 2025.
“Midcap” means it buys stocks of medium-sized companies. In India, companies are sorted by size based on their market value. Midcap companies rank between 101 and 250 in size. They’re not as big as giants like Reliance but bigger than tiny startups. “Direct Growth” means you deal directly with the fund company—no middleman—and the money grows over time instead of paying you small bits regularly.
How Does Motilal Oswal Midcap Fund Work?
The Motilal Oswal Midcap Fund Direct Growth tries to make your money grow over many years. It buys stocks of midcap companies that could get bigger and stronger. The fund picks up to 30 companies’ stocks at a time. The managers choose companies they think are special and can do well later.
As of 2025, the fund has about ₹26,421 crore in total money. This is called Assets Under Management (AUM)—a huge amount! It shows how much people trust this fund. The price of one unit, called the Net Asset Value (NAV), was ₹103.19 on March 06, 2025, according to Groww.in. The NAV changes daily based on how the stocks perform.
Who Manages the Fund?
The fund is run by clever people called fund managers. They decide which companies’ stocks to buy. Niket Shah and Ajay Khandelwal are the main managers. Niket has worked with Motilal Oswal for years and knows midcap companies well. Ajay helps him, and they team up with others like Rakesh Shetty and Sunil Sawant to keep things running smoothly. Check out more about them on the official website at www.motilaloswalmf.com.
Motilal Oswal Midcap Fund Invest In Companies
The fund buys stocks in different midcap companies. As of early 2025, some top ones are Persistent Systems, Coforge, and Kalyan Jewellers India. Persistent Systems and Coforge make software and help with tech. Kalyan Jewellers sells gold and diamond jewelry across India. These are just a few examples—the fund has more in its mix.
It focuses on areas like technology, consumer goods, and retail. About 66% of its money goes into these sectors, according to Moneyworks4me.com. Spreading money across different businesses helps balance the ups and downs of the market.
Past Performance of MOMF
Looking at past growth shows how the fund has done. Since starting in 2014, it has grown about 23.72% per year on average, says Angel One. Over the last 5 years, it grew by 27.91% yearly, and in the last 1 year, it was 26.53%, according to Livemint.com data from early 2025.
These numbers are called CAGR—Compound Annual Growth Rate. It shows how money grows over time. But past growth doesn’t promise future results. The stock market can rise or fall, affecting the fund.
Expense Ratio and Exit Load
Running a fund costs money—like paying managers and handling papers. This cost is called the expense ratio. For this fund, it’s 0.65% as of early 2025, per Tickertape.in. So, for every ₹100 you have in the fund, 65 paise goes to costs each year. That’s lower than many funds, which can charge up to 2%.
There’s also an exit load. If you take money out within 1 year, you pay 1% of it as a fee. For example, if you withdraw ₹10,000 before 365 days, you pay ₹100. After 1 year, there’s no fee. This helps keep the fund steady.
How Much Money Can You Start With?
You don’t need a lot to begin. The smallest amount is ₹500 for a one-time investment. You can also add ₹500 monthly through a Systematic Investment Plan (SIP). This makes it simple for many people to start, even with small savings.
Risk Level of the Fund
All mutual funds have some risk because the stock market moves up and down. This fund is rated “Very High” risk by Groww.in. Midcap companies can grow fast but can also lose value quicker than big companies. It’s riskier than large company funds but less risky than some small company ones.
Numbers like the Sharpe ratio (1.19) and standard deviation (18.32%) show how it balances risk and growth, per Livemint.com. A higher Sharpe ratio means it’s doing okay for its risk. These are just facts—no judgment here.
How to Buy Units of the Fund
To put money in, you can go online or visit an office. The Motilal Oswal Mutual Fund website (www.motilaloswalmf.com) has steps to buy units. You can pay once or set up an SIP. Apps like Groww or Paytm Money also work and let you track your money. You need to do KYC—a quick ID check—before starting.
What Makes Motilal Oswal Midcap Fund Different?
This fund focuses only on midcap companies and picks just 30 stocks. Many funds mix big, medium, and small companies or hold more stocks. The managers look for companies with strong points—like good products or smart leaders—to help growth. Being a “direct” plan means no extra middleman costs, keeping the expense ratio low.
Why Do People Choose Midcap Funds?
Midcap funds are popular in India because medium-sized companies can grow faster than big ones. They’re more stable than tiny companies but still have space to expand. Many Indians pick these funds to balance growth and safety. This fund fits that idea by choosing quality midcap stocks.
Motilal Oswal Midcap Fund Details
| Detail | Value |
|---|---|
| Launch Date | February 24, 2014 |
| AUM | ₹26,421 crore |
| NAV (March 06, 2025) | ₹103.19 |
| Expense Ratio | 0.65% |
| Exit Load | 1% within 1 year |
| Minimum Investment | ₹500 (one-time/SIP) |
| Risk Rating | Very High |
How Does the Fund Fit in India’s Market?
India’s stock market has groups like the Nifty 50 for big companies and Nifty Midcap 150 for medium ones. This fund picks stocks mostly from the midcap group. India’s economy is growing, and midcap companies often help drive that growth. Sectors like tech and retail, where this fund invests, are big in India today.
Tax Rules for the Mutual Fund in 2025
Since this is an equity fund (mostly stocks), India has tax rules. If you sell within 1 year, returns are taxed at 20%. This is called Short-Term Capital Gains (STCG). If you hold for more than 1 year, it’s Long-Term Capital Gains (LTCG). You pay 12.5% tax on returns above ₹1.25 lakh in a financial year. For example, if you make ₹1.50 lakh profit after 1 year, only ₹25,000 is taxed at 12.5%, which is ₹3,125. These taxes apply when you file your income tax return.
Where to Find More Information
For more details, visit the official Motilal Oswal Mutual Fund website at www.motilaloswalmf.com. They share fact sheets and updates. Trusted sites like www.moneycontrol.com or www.etmoney.com also have info. Always check the latest data since the market changes.
Frequently Asked Questions Related to MOMF
What is the Motilal Oswal Midcap Fund Direct Growth?
It’s a mutual fund that buys stocks of medium-sized companies in India to grow money over time. It started in 2014 and is run by Motilal Oswal Mutual Fund.
How much money do I need to start?
You can begin with ₹500, either one-time or monthly through SIP.
What’s the cost to run the fund?
The expense ratio is 0.65%. For every ₹100, 65 paise goes to costs yearly.
Is there a fee to take money out?
Yes, 1% if you withdraw within 1 year. After that, it’s free.
How are returns taxed?
If you sell before 1 year, returns are taxed at 20%. After 1 year, profits above ₹1.25 lakh are taxed at 12.5%.