Motilal Oswal Nifty MidSmall Financial Services Index Fund-Regular Plan-Growth

Motilal Oswal Nifty MidSmall Financial Services Index Fund-Regular Plan-Growth holds up reasonably well within the Sectoral category, backed by a 4-star rating. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 72/100.

Cost: At 0.81%, the expense ratio is meaningfully cheaper — about 23% below the Sectoral category average of 1.05% (based on 338 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a moderate Sharpe ratio of 0.72 — decent risk-adjusted performance, without being exceptional. Separately, with 20.44% annualised volatility, this is among the more turbulent funds in its space — expect sharp swings in both directions.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Equity fund. Given the Very High risk rating, this fund is not suited to short-term goals or investors who may need to exit within 2-3 years.