The Motilal Oswal Nasdaq 100 Fund of Funds outperformed its peers with a 58.7% one-year return. This performance highlights the strong recent growth of US technology-focused indices. Investors should note that international funds often see performance swings based on global market trends and currency fluctuations.
Detailed Coverage
The Motilal Oswal Nasdaq 100 Fund of Funds (FOF) has emerged as the leading performer in the overseas mutual fund category, recording a one-year compound annual growth rate of 58.7% as of late July 2026. This significant growth reflects the underlying performance of the Nasdaq 100 index, which tracks the 100 largest non-financial companies listed on the Nasdaq stock exchange, heavily weighted toward major technology corporations.
Comparison With Market Peers
When compared to other overseas funds with over Rs 1,500 crore in assets under management, the Motilal Oswal fund maintained a lead over competitors. The Kotak Global Emerging Market Overseas Equity Omni FOF and the Edelweiss Greater China Equity Off-shore Fund followed, recording returns of 47.2% and 39.9% respectively over the same one-year period. These figures illustrate the different performance outcomes across various international markets, with US-focused technology exposure currently outperforming emerging market and China-focused strategies.
Benchmark and Timeframe Analysis
Beyond just beating its peers, the Motilal Oswal fund has shown significant outperformance against its own benchmark index. The fund delivered returns approximately 38.4 percentage points higher than its benchmark, which stood at 20.4% for the year. This trend of outperformance is also visible over a three-year timeframe, where the fund achieved 35.9% compared to the benchmark's 21.9%.
However, investors should observe that performance can fluctuate significantly depending on the time horizon. While the fund dominates in long-term periods, it does not always lead in shorter windows. For example, other funds like the Axis Greater China Equity FoF have shown higher returns in the one-month period, demonstrating how sector-specific and geographic shifts can impact short-term results.
Important Considerations for Investors
When investing in international funds, several factors beyond historical returns are important. Because these funds invest in foreign assets, their net asset value (NAV) is influenced by both the performance of the underlying stocks and the movement of the Indian Rupee against the US Dollar. A stronger rupee can sometimes lower the gains for Indian investors in foreign funds, while a weaker rupee may add to the returns.
Additionally, international mutual funds are currently taxed as per the investor's applicable income tax slab in India, which differs from the taxation of domestic equity funds. Investors should continue to monitor the performance consistency of the fund manager, the underlying expense ratios, and how global interest rate changes affect the US technology sector, which forms the core of the Nasdaq 100 index.