Motilal Oswal Midcap Fund-Dir Growth
Thinking about where to invest your money in 2025? If you’re looking for steady growth and you’re open to a little risk, mid-cap mutual funds might be worth your attention. And one fund making waves in this space is the Motilal Oswal Midcap Fund – Direct Growth. So, what makes this fund a smart choice for long-term investors? Let’s break it down in simple terms.
What Is a Mid-Cap Fund, Anyway?
Before we jump into the details, let’s start with the basics.
When you invest in a mutual fund, you’re basically pooling your money with other investors. This money is then used to buy a mix of stocks and other assets. A mid-cap fund invests in medium-sized companies — not the biggest names, but also not the tiny start-ups. Think of them as the “just right” companies that are on their way to becoming major players.
These companies are typically more stable than small-caps but offer more growth potential than large-caps. That’s what makes mid-cap funds like this one a sweet spot for many investors.
Introducing the Motilal Oswal Midcap Fund
Now that we’ve got that sorted, let’s talk about the Motilal Oswal Midcap Fund – Direct Growth.
This fund is managed by Motilal Oswal Asset Management Company, a trusted name in the Indian investment world. The fund focuses on investing in high-growth mid-sized companies across different sectors. It’s designed for people who plan to stay invested for at least 5 to 7 years and can weather a bit of market ups and downs.
Key Highlights of the Fund:
- Fund Type: Equity – Mid-Cap
- Launch Date: February 24, 2014
- Risk Level: Very High (due to equity market exposure)
- Minimum Investment: ₹500
- Exit Load: 1% if units are redeemed within 15 days of investment
- Fund Manager: Mr. Shreyash Devalkar
Returns and Ranks ( as on 23 May 2025 )
- 1Y Returns
- 3Y Returns
- 5Y Returns
- MAX Returns
- Trailing Returns
- 16.82%
- 33.66%
- 40.00%
- 24.03
- Address :
- Motilal Oswal Tower,10th flr Rahimtu-llah sayani road opp parel stdepot prabhadevi Mumbai 400025
-
- Contact :
- +91022-40548002 / 8108622222
- Email ID :
- amc@motilaloswal.com
Why Choose This Fund in 2024?
Let’s face it — investing can often feel complicated. But one simple truth remains: over time, growth beats stagnation. Mid-cap companies are often at a stage where they’re scaling up — new products, expansion, acquisitions — and that means big growth potential if you invest early.
Here’s why Motilal Oswal Midcap Fund stands out in this segment:
1. Solid Track Record
Since its inception, the fund has delivered commendable returns. Performance-wise, it has managed to beat its benchmark index over several time periods. While past performance isn’t a guarantee for future returns, it does give you an idea of how well the fund has been managed.
2. Focused Investment Strategy
The fund follows a “Buy Right, Sit Tight” philosophy. That means it carefully selects quality mid-cap stocks and holds onto them for the long term — instead of making frequent trades. This long-term focus is appealing if you’re someone looking to build wealth steadily over time.
3. Experienced Fund Manager
Behind every successful fund is a smart fund manager. In this case, Mr. Shreyash Devalkar brings years of experience and industry knowledge. He’s known for maintaining a focused and research-driven approach to stock selection.
4. Competitive Expense Ratio
Because this is a Direct Growth plan, the expense ratio is lower compared to regular plans. This helps in retaining more of the earnings within your investment — meaning better returns for you over the long run.
5. Exit Load & Tax Implications
Exit Load
-
1% exit load is applicable if the investment is redeemed within 365 days from the date of allotment.
-
No exit load (Nil) if redeemed after 365 days.
Tax Implications
-
Returns redeemed within one year are subject to 20% tax.
-
Returns held for more than one year are taxed at 12.5% as Long-Term Capital Gains (LTCG) on gains exceeding ₹1.25 lakh in a financial year.
Fund Objective
The objective of the scheme is to achieve long-term capital appreciation by investing in high-quality mid-cap companies that possess sustainable competitive advantages and strong growth potential.
However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
Who Should Invest in This Fund?
Wondering whether this fund is right for you? Ask yourself a few simple questions:
- Are you comfortable with some market-related ups and downs?
- Can you stay invested for at least 5 years?
- Are you looking for higher returns compared to fixed deposits or savings plans?
- Are you okay taking calculated risks for potential high growth?
If you answered yes to most of these, then this fund might be a good fit for your portfolio.
Returns at a Glance
Let’s take a quick look at how the fund has performed over the years:
- 1-Year Return: ~43%
- 3-Year CAGR: ~25%
- 5-Year CAGR: ~22%
- Since Inception: ~23.5% CAGR
Of course, markets fluctuate, and returns may vary — but these numbers paint a strong picture. For comparison, traditional savings or fixed deposits hover around just 6-7%. That’s a big difference, especially over time.
How to Start Investing
Getting started is easier than ever today. You can invest online through platforms like 5paisa, directly from the fund house’s website, or via a financial advisor. All you need is your PAN card, Aadhaar, and a bank account. And with a minimum investment starting at just ₹500, it’s quite accessible for beginners too!
Tips to Make the Most of It
- Stay Consistent: Consider a Systematic Investment Plan (SIP) to invest steadily each month.
- Have Patience: Mid-cap funds need time. Don’t expect overnight results.
- Diversify: Don’t put all your eggs in one basket. Mix this fund with large-cap and small-cap funds for better portfolio balance.
- Review Annually: Keep an eye on the fund’s performance every year, but avoid making sudden moves based on short-term changes.
Final Thoughts
If you’re aiming to grow your wealth and are ready for a slightly bumpy but rewarding ride, the Motilal Oswal Midcap Fund – Direct Growth could be a smart move in 2024. It offers a solid growth story backed by thoughtful management and consistent performance.
Remember, investing isn’t about jumping on trends — it’s about making informed choices and sticking with them. So if you’re gearing up to invest this year, give mid-cap mutual funds like this one a serious look.
After all, the best time to plant a tree was 20 years ago. The second-best time? Today.
Frequently Asked Questions (FAQs)
Q: Is Motilal Oswal Midcap Fund good for beginners?
A: It can be, especially if you have a long-term goal and understand that the value may fluctuate in the short term. Starting small and using SIPs is a beginner-friendly approach.
Q: What is the minimum investment amount?
A: You can start with as little as ₹500, making it accessible to most investors.
Q: Can I withdraw my money anytime?
A: Yes, but if you withdraw within 15 days of investing, there’s an exit load of 1%.
Q: Is this fund risky?
A: Like all equity investments, there is risk involved. The “Very High” risk label means it’s suited for investors who can handle market ups and downs.
Explore. Invest. Grow!
Looking to kick off your investment journey this year? The Motilal Oswal Midcap Fund – Direct Growth offers a solid option to explore. With the right mindset and some patience, it could be a key part of your financial success story in the years ahead.
Ready to invest? Don’t wait too long. Let your money start working for you today.
Motilal Oswal Midcap Fund-Dir Growth
You can invest directly to this fund :
https://www.5paisa.com/mutual-funds/motilal-oswal-midcap-fund-dir-growth
[…] Motilal Oswal Midcap Fund-Dir Growth May 25, 2025 […]