Mumbai, May 17, 2025 — Motilal Oswal Asset Management Company Ltd. (MOAMC) has launched the Motilal Oswal Nifty Midcap150 Momentum 50 ETF, an open-ended exchange-traded fund (ETF) designed to track India’s top momentum-driven midcap stocks. The fund aims to replicate the performance of the Nifty Midcap 150 Momentum 50 Total Return Index, offering investors a low-cost, data-driven strategy within the midcap segment.
A Pure Momentum Strategy within Midcaps
The ETF will invest 95% to 100% of its portfolio in stocks that are part of the Nifty Midcap 150 Momentum 50 Index. These stocks are selected based on a momentum score derived from 6-month and 12-month price returns, adjusted for volatility. The index is rebalanced semi-annually, ensuring relevance to prevailing market trends.
Sector Highlights: Where the Momentum Lies
While the fund does not disclose predefined sector weights, its current index composition (as of February 28, 2025) indicates high momentum across:
Healthcare & Pharma: Max Healthcare, Lupin, Fortis, Aurobindo, Biocon
Information Technology: Persistent Systems, Coforge, Mphasis
Consumer & Hospitality: Page Industries, Indian Hotels, Jubilant FoodWorks
Industrial & Electricals: CG Power, Cummins, Polycab, Hitachi Energy
Financials: Federal Bank, HDFC AMC, PB Fintech, Indian Bank
This diversified allocation reflects sectoral leadership within the midcap universe, selected purely on momentum metrics.
Fund Structure and Key Details
Feature
Details
Fund Type
Open-ended ETF
Index Tracked
Nifty Midcap 150 Momentum 50 TRI
Listing
Proposed on NSE
Launch NAV
₹10 per unit
Minimum Application (NFO)
₹500 and in multiples of ₹1 thereafter
Exit Load
Nil
Creation Unit Size (for Direct AMC)
36,000 units (₹25 crore min, unless exempt)
Expense Ratio (TER)
Up to 1.00%
NFO Timeline and Subscription
While the New Fund Offer (NFO) dates are yet to be announced, the fund will be open for a minimum of 3 working days and not more than 15 days. Units will be allotted at a price approximately 1/1000th of the benchmark index value on the date of allotment.
The ETF will be available for trading post-listing on the NSE and can be bought or sold like any stock. Large institutional investors can subscribe to/redeem directly with the AMC in creation unit lots.
Simple, No-Dividend Structure
The ETF maintains a straightforward growth-only structure, with no dividend (IDCW) options and no multiple plan variants, making it an efficient long-term vehicle for passive equity exposure.
Index Performance: Long-Term Strength
Period
Returns (CAGR)
Volatility
1 Year
-2.59%
23.21%
3 Years
20.13%
18.48%
5 Years
28.06%
21.05%
10 Years
20.22%
18.66%
Despite a short-term dip, the index's long-term return profile supports the case for strategic allocation to momentum stocks in the midcap segment.
Fund Managers
A team of seasoned professionals manages the ETF:
Swapnil Mayekar, Fund Manager – specialist in passive strategies with over 14 years’ experience
Dishant Mehta, Associate Fund Manager – passive fund dealer with expertise in index execution
Rakesh Shetty, Fund Manager (Debt) – oversees liquidity and short-term instrument allocation
Final Word
The Motilal Oswal Nifty Midcap150 Momentum 50 ETF offers a compelling new option for investors seeking a momentum-based, midcap-focused ETF backed by a quantitative, rule-based approach. With a low expense structure, sectoral dynamism, and real-time liquidity post-listing, the fund is positioned as a strategic tool for riding midcap trends in India's evolving equity landscape. Investors should consult their financial advisors to assess the fund's suitability based on risk appetite, investment goals, and market view.
