The Motilal Oswal Nasdaq 100 Fund of Funds (FOF) recorded a 69.6% return over the past year, outperforming major overseas rivals. With assets totaling Rs 8,583.3 crore, the fund has maintained strong gains across one-year and three-year periods. Investors should note that overseas fund performance depends on US market movements and currency fluctuations, which can lead to short-term volatility compared to local schemes.
The Motilal Oswal Nasdaq 100 Fund of Funds (FOF) has emerged as the leading performer in the overseas mutual fund category, delivering a one-year return of 69.6% as of July 7, 2026. This performance reflects the strong growth in major US technology stocks that make up the Nasdaq 100 index. According to data from ACE MF, the fund manages a substantial asset base of Rs 8,583.3 crore, making it the largest among the top five funds in its category with at least Rs 1,500 crore in assets under management.
The fund’s returns have comfortably outpaced its benchmark index. Over the past year, the scheme outperformed its benchmark by 41 percentage points, with the index itself rising by 28.6%. A similar trend is observed over a three-year horizon, where the fund delivered a return of 38.2%, compared to the 24.7% return of the benchmark. This consistent gap highlights the fund's strategy of tracking the Nasdaq 100 closely while managing the underlying investment structure.
When compared to other overseas funds, the performance varies by the time period measured. For instance, the Kotak Global Emerging Market Overseas Equity Omni FOF and the Edelweiss Greater China Equity Off-shore Fund reported one-year gains of 55.2% and 51.4%, respectively. While Motilal Oswal leads over the one-year and three-year windows, other schemes like the Kotak US Specific Equity Passive FOF have shown different patterns, including leading in the one-month return comparison. In the three-month window, Motilal Oswal Nasdaq 100 FOF returned 33.3%, reinforcing its recent performance strength.
Investors should consider that overseas FOFs operate differently than domestic equity funds. These schemes invest in underlying international funds or exchange-traded funds, meaning that investor returns are influenced not only by the price performance of foreign stocks but also by changes in the rupee-dollar exchange rate. When the rupee weakens against the dollar, overseas investments may show higher returns in rupee terms, whereas a strengthening rupee can reduce those gains.
Additionally, these funds are subject to different tax treatments compared to local equity funds in India. Since they primarily invest in foreign assets, they are often taxed at the investor's applicable income tax slab rather than the lower capital gains rates applied to domestic equity funds. Monitoring these tax implications, along with the performance of the Nasdaq 100 index and global interest rate trends, will be essential for those tracking these investments.