The Motilal Oswal Nasdaq 100 Fund of Funds has delivered a 38.3% return over the past six months, ranking it as the top performer in its category. With an asset base exceeding Rs 8,500 crore, it is also the largest fund among the major players. Investors should consider that this performance is linked to US technology stock trends and currency fluctuations.
The Motilal Oswal Nasdaq 100 Fund of Funds (FOF) has emerged as a leader in the overseas mutual fund category, recording a 38.3% return over the six-month period ending July 7, 2026. This performance stands out when compared to other major overseas funds with assets under management (AUM) exceeding Rs 1,500 crore.
Comparison With Peers
Data from ACE MF shows that other notable funds in this category have also seen gains, though they remain behind the leader. The Kotak Global Emerging Market Overseas Equity Omni FOF and the Kotak US Specific Equity Passive FOF recorded returns of 23.4% and 19.5%, respectively, over the same six-month window. With its corpus reaching Rs 8,583.3 crore, the Motilal Oswal fund is currently the largest in its peer group, giving it significant scale.
Performance Over Time
The fund's performance has been consistent across different timeframes. On a one-year basis, the fund delivered returns that outperformed its benchmark index by 41 percentage points. Looking at a three-year horizon, the fund returned 38.2%, outperforming its benchmark return of 24.7% by 13.5 percentage points. While short-term volatility is common in overseas equity markets, the fund has maintained a lead over longer periods.
Risks and Market Context
Investors looking at overseas funds should understand that these schemes primarily track US-based indices, such as the Nasdaq 100. This means returns are heavily influenced by the performance of US technology companies and the movement of the Indian Rupee against the US Dollar. When the rupee weakens, international investments often appear more valuable in rupee terms, which can boost performance. However, if the rupee strengthens or if US markets face a downturn, the fund's returns could be negatively affected.
Additionally, regulatory limits on overseas investments by Indian mutual funds remain a point of concern for the industry. While existing funds continue to operate, capacity constraints have sometimes led asset management companies to pause fresh inflows. Investors should monitor if there are any new updates from the regulator regarding these investment limits or if the fund house implements any changes to its subscription policy due to its large size. The key monitorable for existing and prospective investors remains the ongoing performance of the underlying US technology index and any changes in the regulatory environment for overseas investments.