Motilal Oswal Midcap Fund: One of the best performing midcap funds

Motilal Oswal Midcap Fund has an enviable wealth creation track record. If you had invested Rs 10,000 every month in Motilal Oswal Midcap Fund through Systematic Investment Plan since the inception of the scheme, your investment would have grown in value to nearly Rs 47 lakhs as on 30^th April 2025 with a cumulative investment of just Rs 13.5 lakhs (see the chart below). The SIP XIRR return of this scheme since inception is 20.8%.

Source: Advisorkhoj Research, as on 30^th April 2025

Consistently outperformed the benchmark

The chart below shows the 5 year rolling returns of Motilal Oswal Midcap Fund versus its benchmark index since the inception of the scheme. You can see that, after a period of underperformance, the scheme has consistently outperformed its benchmark index and created alphas 5 year investment tenures.

Source: Advisorkhoj Research, as on 30^th April 2025

Superior risk adjusted returns compared to peers

Sharpe Ratio is a measure of risk adjusted returns of mutual fund schemes. We compared the Sharpe Ratios of all midcap funds which have minimum 3 years of track record. Motilal Oswal Midcap Fund (in blue) has higher Sharpe Ratios compared to peers.

Source: Advisorkhoj Research, as on 31^st March 2025

Significantly higher alphas compared to peers

Jensen's alpha is the excess return over benchmark (outperformance) after adjusted for the systematic risk of the fund (beta). Jensen's alpha is a measure of the fund's manager's contribution to investor's returns. We compared the Jensen's Alphas of all midcap funds which have minimum 3 years of track record. Motilal Oswal Midcap Fund (in blue) has higher Alphas compared to peers.

Source: Advisorkhoj Research, as on 31^st March 2025

Consistent outperformance versus peers

The chart below shows the 5 year rolling returns of in Motilal Oswal Midcap Fund (rolled daily) versus the midcap funds category average since the inception of the scheme. Rolling returns is the most unbiased measures measure to evaluate fund's performance. We are showing 5 year rolling returns in this chart because in our opinion, you should have minimum 5 year investment horizon while investing in midcap funds. You can see that Motilal Oswal Midcap Fund was able to consistently outperform the midcap funds category average over 5 year investment tenures across different market conditions (both bull and bear markets).

Source: Advisorkhoj Research, as on 30^th April 2025

Consistently a top performer

The graphic below shows the annual (calendar year) performance of Motilal Oswal Midcap Fund relative to its benchmark index, Nifty Midcap 150 TRI and midcap funds category over the last 10 years. You can see that the fund was in the top 2 quartiles, 7 times in the last 10 years, including 6 times in the Top quartile. This shows strong outperformance with consistency in performance. The fund has been in the top quartiles for the last 4 years consecutively.

Source: Advisorkhoj Research, as on 31^st December 2024

Strong performance consistency

The graphic below shows the quarterly performance of Motilal Oswal Midcap Fund relative to its benchmark index, Nifty Midcap 150 TRI and midcap funds category over the past 12 quarters. You can see that the fund was in top 2 quartiles in 9 out of 12 quarters (8 quarters in top quartile). The underperformance in the last quarter (Q4 of FY 2024-25) can be attributed to prevailing market conditions. Motilal Oswal Midcap Fund follows a high conviction strategy with a relatively concentrated portfolio. Such strategy can underperform in certain market phases, but can quickly recover, as we have seen several times in the past (see the chart below).

Source: Advisorkhoj Research, as on 30^th April 2025

Performance in market drawdowns – limited downside risks

The chart below shows the drawdowns of Motilal Oswal Midcap Fund versus the benchmark, Nifty Midcap 150 TRI. You can see that the fund had relatively smaller drawdowns compared to the benchmark index.

Source: Advisorkhoj Research, as on 30^th April 2025

We have shown the drawdowns of Motilal Oswal Midcap Fund versus the benchmark index in the biggest corrections over the last 5 years. You can see that in most big corrections, Motilal Oswal Midcap Fund was able to limit the downside risks for the investors in most major corrections.

Source: Advisorkhoj Research, as on as 30^th April 2025

Current Portfolio Positioning

Source: MOSL, Fund Factsheet, as on 31^st March 2025

Why invest in midcaps now?

The deep correction in last quarter dragged midcap cap stocks into the bear market zone with the Midcap 150 TRI correcting by more than 20% from its 52-week high (as of end of last quarter). Though sharp correction has brought valuation to reasonable levels (see the chart below) has eased valuations across different market cap segments, bringing them to more reasonable levels. Though the market recovered after the Trump Administration announced a 90 day pause on proposed tariffs, current valuations are still significantly lower than peak valuations (see the chart below).

Source: NSE, Advisorkhoj Research, as on as on 30^th April 2025

Why invest in Motilal Oswal Midcap Fund?

• Crafted from a decade of financial acumen by pioneering early identification & investment in Midcaps.


• A portfolio of about ~35* carefully curated high conviction midcap stocks. *Based upon our current investment strategy.


• investing in Quality of business and management through our unique QGLP investment philosophy


• A House known for identifying high-growth themes

Who should invest in Motilal Oswal Midcap Fund?

• Investors looking for capital appreciation and wealth creation.


• Investors should have at least 5 year investment horizon in this scheme.


• Investors with very high risk appetite.


• Investors can invest in this scheme either through lump sum or SIP depending on your investment needs.

Investors should consult their financial advisors or mutual fund distributors if Motilal Oswal Midcap Fund is suitable for their long term investment needs.

To know more about Motilal Oswal Midcap Fund, click here