The Motilal Oswal Nasdaq 100 Fund of Funds (FOF) recorded a 63.2% return over the past year, outperforming its benchmark. With an asset base of over ₹8,200 crore, the fund has maintained strong performance relative to its peers. Investors should note that international fund rankings often shift significantly based on the chosen time frame and specific market conditions.
Detailed Coverage
The Motilal Oswal Nasdaq 100 FOF has emerged as a top performer within the overseas fund-of-funds category, delivering a one-year compounded annual growth rate (CAGR) of 63.2%. This return stands in contrast to its benchmark, which recorded a -2.5% performance over the same period. The fund’s ability to outpace its benchmark by a significant margin has drawn attention from investors looking to diversify their portfolios through international exposure.
Asset Size and Peer Performance
According to data from ACE MF as of July 21, 2026, the Motilal Oswal Nasdaq 100 FOF is not only leading in returns but also in scale. With assets under management (AUM) totaling ₹8,267.2 crore, it remains the largest among the top-performing international funds reviewed. Other funds, such as the Kotak Global Emerging Market Overseas Equity Omni FOF and the Edelweiss Greater China Equity Off-shore Fund, reported one-year returns of 48.8% and 43.1%, respectively. While these funds also posted notable gains, they trailed behind the Motilal Oswal offering in this specific one-year comparison.
Understanding Performance Fluctuations
It is important for investors to recognize that rankings in the mutual fund space are highly sensitive to the period selected for analysis. Short-term leadership often shifts between funds based on the regional markets they track. For instance, while the Nasdaq 100-focused fund dominated the one-year results, other funds have led during shorter intervals. Recent data indicated that the Axis Greater China Equity FOF saw a -0.6% return over a one-month period, while the Kotak US Specific Equity Passive FOF recorded a 12.8% gain over a three-month window.
Strategic Considerations for Investors
The fund’s three-year performance, which shows a 36.7% return, suggests a level of consistency that is often more relevant to long-term investors than short-term spikes. When evaluating these funds, it is crucial to remember that they are subject to risks beyond those of domestic Indian equity funds. These include currency fluctuations between the Indian Rupee and the US Dollar, as well as changes in foreign taxation policies. Because these funds invest in foreign indices or underlying foreign mutual funds, their performance is tied to global macroeconomic conditions and sector-specific trends in international markets, such as the technology-heavy composition of the Nasdaq 100. Investors should monitor the underlying asset allocation and the specific investment mandate of these funds, as comparing a fund focused on US technology stocks with one focused on Chinese or emerging markets may not be an apples-to-apples comparison.