Motilal Oswal BSE 1000 Index Fund: A Comprehensive Gateway to India's Growth Story

Introduction: Why the BSE 1000 Index Fund Deserves Your Attention

In a market crowded with index funds tracking the Nifty 50 or Sensex, the Motilal Oswal BSE 1000 Index Fund emerges as a game-changer. This fund captures India’s top 1000 listed companies, providing investors with an unparalleled opportunity to diversify across large-cap, mid-cap, small-cap, and micro-cap stocks in one single vehicle. If you seek broad-based exposure, sectoral depth, and superior long-term returns, this fund checks every box.

India’s Economic Potential: Fuel for Long-Term Equity Growth

India remains the fastest-growing major economy, projected to deliver a 6.2% GDP growth in 2025 and 6.3% in 2026 as per the IMF. With strong domestic demand, policy reforms, and global competitiveness via digitalization and infrastructure, India is poised to become a $23–$35 trillion economy by 2047. Investing in a fund like the BSE 1000 allows participation in this massive growth journey through every market segment.

What is the BSE 1000 Index Fund?

The Motilal Oswal BSE 1000 Index Fund is an open-ended passive fund that replicates the BSE 1000 Total Return Index, offering comprehensive access to the top 1000 companies across all market caps. With semi-annual rebalancing and a free-float market-cap-based weighting, the index ensures dynamic and up-to-date representation.

Key Features:

• Type: Passive Index Fund

• Benchmark: BSE 1000 TRI

• Minimum Investment: ₹500

• Expense Ratio: Among the lowest

• Exit Load: 1% if exited within 15 days

All-in-One Exposure: Large, Mid, Small & Micro Caps

Holistic Market Representation

The fund allocates across:

• Large Caps (1–100) – 60.6%

• Mid Caps (101–250) – 18.2%

• Small Caps (251–500) – 9.7%

• Micro Caps (501–1000) – 5.4%

This ensures that you’re not missing out on high-growth emerging sectors or established blue chips—both are covered.

Sectoral and Industrial Breadth Like No Other

While Nifty 50 limits itself to just 15 sectors, the BSE 1000 spans all 22 sectors defined by AMFI, with allocation to:

• Financial Services – 29.8%

• Consumer Discretionary – 15.4%

• Information Technology – 9.4%

• Energy, FMCG, Commodities, Industrials, and more

With representation from 159 out of 183 industries, this fund is a mirror to India’s corporate ecosystem.

Superior Stock and Sector Diversification

Where Nifty 50's top 10 stocks dominate 56.5% of its weight, BSE 1000 maintains only 32.3% in its top 10 holdings. This low concentration risk makes it more resilient to individual stock volatility, enhancing long-term stability.

Performance That Speaks Volumes

Returns (as of May 31, 2025):

BSE 1000 TRI Nifty 50 TRI 1 Year 8.86% 11.08% 5 Year CAGR 25.79% 22.32% 10 Year CAGR 14.15% 12.75% Risk-Adjusted 1.71 (5Y) 1.51 (5Y)

Over a 15-year SIP, the BSE 1000 generated a corpus of ₹62.89 Lakhs vs ₹54.76 Lakhs for Nifty 50—highlighting consistent alpha generation and higher compounding potential.

Microcaps: The Hidden Growth Engine

• Microcaps have delivered a 5-year revenue CAGR of 14.33% and PAT growth of 90.12%.

• Liquidity has surged 13x in 5 years, driven by retail participation and digital access.

• Despite their size, 87% of microcaps are under-researched, opening doors for undervalued opportunities.

By including microcaps, the BSE 1000 taps into India’s emerging champions, which are often missed by traditional indices.

Why BSE 1000 Outshines Nifty 50

Criteria BSE 1000 Nifty 50 Market Coverage 94% 44% Cap Coverage Large, Mid, Small, Micro Large only Sector Concentration Balanced (Top 3 – 55%) High (Top 3 – 61%) Stock Concentration Low (Top 10 – 32%) High (Top 10 – 57%) Historical Returns Higher Lower Volatility Lower Higher

Why Invest Now?

With markets correcting by 5–10% and valuations returning to historical averages, it’s a strategic entry point:

• BSE 1000 P/E: 25.37 vs long-term median of 27.05

• Small & Midcap segments also show valuation comfort

Combine this with India’s structural growth, and the timing for long-term passive investing couldn’t be better.

Motilal Oswal’s Proven Passive Fund Expertise

• Nifty 50 Fund tracking error: 0.04%

• Nifty Microcap 250 Fund tracking error: 0.60%

• Experienced fund managers and strong tracking efficiency offer investors confidence in execution.

Investor Suitability

This fund is ideal for:

• Long-term investors aiming to capture India's growth story

• Those seeking broad market diversification

• Investors who want passive management with potential for better risk-adjusted returns

Contact Us to Start Investing

As authorized distributors and mutual fund specialists, we help investors get started. If you’re ready to diversify your equity exposure and benefit from India’s growth trajectory, we’re here to guide you every step of the way.

👉 Reach out now for free consultation, portfolio setup, or SIP registration in the Motilal Oswal BSE 1000 Index Fund.