The Motilal Oswal Nasdaq 100 Fund of Fund has recorded a 41% return over the past six months, outperforming peers in the large overseas fund category. While this reflects strong momentum in US tech stocks, investors should note that returns fluctuate across different timeframes and involve specific risks like currency and sector concentration.
As of August 10, 2026, the Motilal Oswal Nasdaq 100 Fund of Fund (FoF) has delivered a 41% return over the past six months, emerging as a leading performer in the overseas mutual fund category. This performance reflects the broader momentum seen in US equity markets, specifically within the technology and non-financial companies that dominate the Nasdaq 100 index.
For investors, the recent performance highlights how international funds can provide exposure to global growth, but the rankings often shift depending on the time period. While the Motilal Oswal fund holds a prominent position with assets under management (AUM) of approximately ₹7,708 crore, other funds such as the Mirae Asset NYSE FANG+ETF FoF and Edelweiss US Technology Equity FOF have also shown competitive returns. Investors often see that in shorter time windows, such as one to three months, the leadership among these funds can change, suggesting that performance is not uniform across all periods.
The fund operates as a feeder, which means it invests the corpus directly into the underlying Motilal Oswal Nasdaq 100 ETF. This structure offers a simple way for Indian investors to own a basket of US-listed companies. However, this simplicity comes with a specific set of risks that differ from domestic equity funds.
The primary risks for investors to monitor include currency fluctuation and sector concentration. Because the investments are denominated in US Dollars, a strengthening Indian Rupee can reduce the overall returns for an Indian investor, even if the US stocks perform well. Additionally, since the fund is heavily focused on the technology sector, it may experience higher volatility if there is a global or US-specific slowdown in tech spending or sentiment.
Investors should also consider the cost structure and tax implications. The fund carries an exit load of 1% if units are redeemed within 15 days, which is designed to discourage very short-term trading. Furthermore, the net returns are impacted by current taxation rules on long-term capital gains for overseas funds. With a 'Very High' risk rating, the fund is best suited for those with a longer investment horizon who can tolerate the volatility associated with international markets. The key for investors going forward is not just tracking the recent double-digit gains, but assessing how the underlying US market conditions and policy environment might influence future performance.