Motilal Oswal MF Launches ‘Motilal Oswal Multi Factor Passive Fund of Funds’
The NFO opens on February 20, 2026 and closes on March 6, 2026
A rule-based, equal-weighted multi-factor approach to capture broad factor exposures
Mumbai, February 19, 2026 – Motilal Oswal Mutual Fund (MOMF) has announced the launch of its latest New Fund Offer (NFO),
Motilal Oswal Multi Factor Passive Fund of Funds. The scheme is an open-ended Fund of Funds investing in units of passively managed factor-based ETFs and/or Index Funds, designed to provide diversified exposure across four investment factors —
Value, Quality, Low Volatility, and Momentum — through a disciplined, rules-driven equal-weight framework.
The
Motilal Oswal Multi Factor Passive Fund of Funds addresses a key challenge in equity investing: predicting which factor will outperform next. Factors represent measurable stock characteristics that have historically been associated with differences in returns relative to the broader market. Leadership among factors may rotate over time, making timing difficult and potentially increasing transaction costs, taxes, and behavioral biases.
The scheme adopts a systematic strategy:
equal 25% allocation to each factor (Momentum: Nifty 500 Momentum 50 Indices, Quality’s Quality, Low Volatility: BSE Low Volatility, and Value: BSE Enhanced Value). Allocations are reviewed quarterly and rebalanced only if any factor deviates by ±5% from its target, embedding a disciplined "buy low, sell high" mechanism without discretionary calls. The selection of factors and the strategy adopted shall be at the discretion of the Fund Manager, in accordance with the scheme’s investment objective as stated in the Scheme Information Document (SID). Factors exhibit low correlation and minimal stock overlap, ensuring true diversification and smoother risk-adjusted returns.
According to MOAMC''s internal research, factor leadership cycles have rotated over time — with Momentum tending to drive returns in bull phases, Value showing strength in recoveries, and Quality/Low Volatility providing relative stability during market stress. A diversified, equal-weight multi-factor approach is intended to provide broad exposure across these factor behaviors rather than depend on timing decisions.
Historical observations indicate that individual factors have shown outperformance relative to the Nifty 200 over a 15-year period, though with varying performance across cycles, and factor volatility may differ in isolation. The Motilal Oswal Multi Factor Passive FoF is structured to provide systematic exposure across multiple factors reflecting diversification through low factor correlations and minimal stock overlap.
Pratik Oswal, Chief of Business – Passive Funds, Motilal Oswal Asset Management Company Limited (‘MOAMC’) said,
“Factor investing combines rule-based investing with diversified exposure across factors. The Motilal Oswal Multi Factor Passive Fund of Funds allocates equally across four factors, reducing reliance on any single factor at a point in time. It''s a transparent and cost-efficient, and seeks to provide diversified factor exposure within a structured framework.”
Key Fund Details:
NFO Period: February 20, 2026 to March 6, 2026
Investment Objective: The investment objective of the scheme is to generate returns by offering multi factor investment solution that predominantly invests in units of passively managed factor-based ETFs and/or Index Funds.
However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.
Benchmark: Nifty 500 Total Return Index
Investor Profile: This product is suitable for investors seeking to invest in passively managed factor-based ETFs and/or Index Funds that provide a multi-factor exposure and long-term capital appreciation.
Minimum application Amount:
During NFO and on an ongoing basis, ₹500 and in multiples of ₹1 thereafter.
Multiple SIP frequency options are available. For complete details, including SIP terms and conditions, please refer to the Scheme Information Document (SID) and Key Information Memorandum (KIM) available on our website.
Exit load:
1% - If redeemed on or before 15 days from the date of allotment. Nil - If redeemed after 15 days from the date of allotment.
Exit Load will be applicable on switch amongst the Schemes of MOMF. No Load shall be imposed for switching between Options within the Scheme. Further, it is clarified that there will be no exit load charged on a switch-out amongst the plans within the same scheme
The fund will be managed by Mr. Swapnil Mayekar (Fund Manager -Equity component) and Mr. Dishant Mehta (Associate Fund Manager - Equity Component) and by Mr. Rakesh Shetty (Fund Manager - Debt Component).
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
Scheme-specific risk factors are detailed in the Scheme Information Document (SID) of the fund available at https://www.motilaloswalmf.com
Investments in the Motilal Oswal Multi-Factor Fund of Funds can be made through licensed mutual fund distributors, online platforms, or directly via https://www.motilaloswalmf.com
About Motilal Oswal Asset Management Company (MOAMC):
Motilal Oswal Group possesses a legacy in equities for over 3 decades. Motilal Oswal Asset Management Company Ltd. (MOAMC) is registered with SEBI as the Investment Manager for Motilal Oswal Mutual Fund. It was incorporated on November 14, 2008. It provides Investment Management and Advisory Services to investors based within and outside India and has Mutual Funds, AIFs and Portfolio Management Services business.
Source: AMFI, MOIE, MOAMC Research Data as on: 31st Dec, 2025
Disclaimer:
This release is based on internal data, publicly available information, and other sources believed to be reliable. The information contained herein is for general informational purposes only and does not constitute a complete disclosure of all material facts.
Any stocks, sectors or investment strategies mentioned are for illustrative purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. The information provided herein alone is not sufficient for the development or implementation of an investment strategy. Investors should consult their financial advisers before taking any investment decision.
All opinions, figures, estimates and data are as of the date of publication and are subject to change without notice. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information, and no liability is accepted for any loss arising directly or indirectly from the use of this material.
Statements herein may include forward-looking statements based on current expectations and assumptions, which involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied.
The scheme is also subject to risks associated with investing in underlying factor-based passive funds, including style risk and factor concentration risk. Performance may be impacted if selected factors such as value, quality, momentum or low volatility underperform relative to the broader market. As a Fund of Funds, the scheme is subject to the risks and expenses of the underlying schemes. Asset allocation across multiple factors may adversely affect returns under certain market conditions. The selection of factors/strategies shall be in accordance with the Scheme Information Document (SID) and the investment objective of the scheme.
Note: The selection of factors and the strategy adopted shall be at the discretion of the Fund Manager, in accordance with the scheme’s investment objective as stated in the Scheme Information Document (SID)
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
For further details contact:
Rohini Kute
Head, Corporate Communication,
Motilal Oswal Financial Services
Mobile: 9820196838
Mail: rohini.kute@motilaloswal.com