Motilal Oswal Nifty Smallcap 250 Index Fund

Ticker: mf13119
Decent 68/100

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Business Overview

The Motilal Oswal Nifty Smallcap 250 Index Fund is designed for investors looking to capitalize on the growth potential of small-cap companies in India. This fund tracks the Nifty Smallcap 250 Index, offering diversified exposure to emerging businesses. It is ideal for long-term investors seeking to enhance their portfolio with high-growth opportunities. With a focus on small-cap stocks, this fund aims to deliver superior returns over time, making it a valuable addition for those aiming to invest in India's expanding economy.

  • Tracks the Nifty Smallcap 250 Index
  • Ideal for long-term growth investors
  • Diversified exposure to small-cap companies
  • Potential for higher returns compared to large caps
  • Managed by experienced professionals
  • Aligns with India's economic growth trajectory

Investment Thesis

Motilal Oswal Nifty Smallcap 250 Index Fund stands out due to its strong promoter credibility and robust growth potential in digital services. With attractive valuations compared to peers, it presents a compelling opportunity for retail investors looking to capitalize on the small-cap segment's growth trajectory.

  • Strong backing from the reputable Motilal Oswal Group enhances trust and stability.
  • Significant growth potential in the digital services sector supports long-term returns.
  • Attractive valuation metrics make it a cost-effective choice compared to similar funds.
  • Exposure to a diversified portfolio of small-cap stocks mitigates risk.
  • Ideal for investors seeking growth in an expanding market landscape.

Opportunity vs Risk

Opportunities
  • Diversification in smallcap sector
  • Potential for high long-term returns
  • Growing smallcap market in India
  • Lower expense ratio compared to peers
Risks ⚠️
  • Market volatility affecting smallcaps
  • Limited historical performance data
  • Economic downturn impact
  • Higher risk compared to largecaps

Peer Perspective

Motilal Oswal Nifty Smallcap 250 Index Fund trades at a slight premium compared to peers like SBI Small Cap Fund and Nippon India Small Cap Fund. A sustained growth acceleration could trigger a favorable rerating.
📊 Stock Investment Checklist (100 Points)
Motilal Oswal Nifty Smallcap 250 Index Fund • Updated: 2025-09-29 14:11:52
  • 10
    Business
    High
    The smallcap sector has potential but faces volatility.
  • 10
    Growth
    High
    Consistent revenue growth observed, but profit margins are fluctuating.
  • 10
    Profitability
    High
    ROE and ROCE are decent but not exceptional.
  • 8
    Valuation
    High
    Valuation metrics are higher compared to peers.
  • 7
    Balance
    High
    Moderate debt levels, but liquidity is adequate.
  • 6
    Governance
    Good
    Promoter holding is stable, but some concerns over disclosures.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks are significant.
  • 5
    Technicals
    Good
    Market sentiment is mixed, with low liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
The fund shows potential for growth but carries risks associated with smallcap volatility and execution challenges.


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