The Motilal Oswal Nasdaq 100 Fund of Funds has emerged as the top-performing overseas scheme, delivering a 75.6% return over the past year. With an asset base of Rs 8,583.3 crore, the fund significantly outperformed its benchmark return of 29.5%.
The Motilal Oswal Nasdaq 100 Fund of Funds (FOF) has secured the top position among overseas mutual fund schemes, recording a one-year return of 75.6% as of early July 2026. This performance stands out within the category, particularly when considering funds that maintain a minimum asset base of Rs 1,500 crore. The fund currently manages a corpus of Rs 8,583.3 crore, making it the largest in this specific segment.
Comparison Against Benchmarks and Peers
The fund’s performance is notable for its significant lead over its benchmark, the Nasdaq 100 index. While the benchmark returned 29.5% over the one-year period, the Motilal Oswal fund exceeded this by 46.1 percentage points. This outperformance trend extends to the three-year horizon, where the fund delivered a 39.9% return compared to the benchmark's 24.5%.
Other notable funds in the overseas category also displayed strong results during the same period. The Edelweiss Greater China Equity Off-shore Fund and the Kotak Global Emerging Market Overseas Equity Omni FOF reported returns of 56.3% and 55.8%, respectively. While these figures indicate positive momentum for global equity funds, the Motilal Oswal fund maintains its lead in the one-year, three-month, and three-year categories among the tracked schemes.
Understanding Performance Volatility
Investors should note that rankings in the overseas mutual fund category can be volatile, as performance is often tied to the specific geographic and sectoral focus of the underlying investments. For instance, the Motilal Oswal Nasdaq 100 FOF primarily mirrors the performance of US-based technology and large-cap stocks. As a result, the fund's returns are heavily influenced by the performance of the Nasdaq 100 index and currency fluctuations between the Indian Rupee and the US Dollar.
While the recent 75.6% one-year return highlights strong performance, the fund also recorded a -0.5% return over the most recent one-month period. This contrast illustrates the importance of looking at performance over longer time horizons rather than short-term spikes. Investors tracking these funds should also consider that overseas funds are subject to different tax treatments compared to domestic equity mutual funds in India, which can impact the net gains for the individual investor. The primary monitorable for future performance will be the sustainability of the underlying US tech stock rally and the consistency of the fund's tracking error relative to its benchmark.