Investing in the Motilal Oswal Nifty Smallcap 250 ETF: Tapping into India’s Emerging Smallcap Sector
- NSE SYMBOL: MOSMALL250
- What is the Motilal Oswal Nifty Smallcap 250 ETF?
- Key Features of MOSMALL250 ETF
- Top 10 Holdings of MOSMALL250 ETF
- Performance of MOSMALL250 ETF
- Recent Returns:
- Growth of ₹1 Lakh Investment
- Sector Allocation
- Benefits of Investing in MOSMALL250 ETF
- Steps to set up a SIP for the Motilal Oswal Nifty Smallcap 250 ETF (or any stock/ETF) using the Navia APP:
- Is MOSMALL250 ETF Right for You?
- Frequently Asked Questions
NSE SYMBOL: MOSMALL250
Quick Answer: The Motilal Oswal Nifty Smallcap 250 ETF (NSE symbol MOSMALL250) tracks the Nifty Smallcap 250 Total Return Index, giving exposure to 250 small-cap companies across sectors. It launched in March 2024. The post states an expense ratio of 0.30%; no as-on date is given for its returns or holdings, so verify current figures before investing.
The Motilal Oswal Nifty Smallcap 250 ETF (MOSMALL250) provides investors with a unique opportunity to gain exposure to India’s growing small-cap companies. Launched in March 2024, this ETF tracks the Nifty Smallcap 250 Total Return Index. As small-cap companies tend to outperform during bullish market phases, the MOSMALL250 ETF is ideal for investors looking for high-growth potential in the Indian stock market. In this blog, we will explore the key features, top holdings, and recent performance of the ETF and how it can be a part of your systematic investing strategy.
What is the Motilal Oswal Nifty Smallcap 250 ETF?
The Motilal Oswal Nifty Smallcap 250 ETF seeks to replicate the performance of the Nifty Smallcap 250 Total Return Index, which comprises the top 250 small-cap companies in India. These companies represent emerging sectors and businesses with high growth potential, offering investors an opportunity to tap into India’s expanding small-cap market.
Key Features of MOSMALL250 ETF
- Stock Market Investing: Gain exposure to India’s top small-cap companies across multiple sectors.
- Low-Cost ETF: The ETF boasts an expense ratio of 0.30%, making it an affordable option for investors.
- Systematic Investing: Investors can utilize Systematic Investment Plans (SIPs) to invest small amounts regularly using the Navia Zero Brokerage Stock Investing APP, benefiting from cost averaging over time.
Top 10 Holdings of MOSMALL250 ETF
The Motilal Oswal Nifty Smallcap 250 ETF is well-diversified across different industries and sectors. Here are the top 10 holdings of the ETF:
| Company Name | Sector | Holding (%) |
|---|---|---|
| Crompton Greaves Consumer Electricals Ltd | Consumer Cyclical | 1.64% |
| Multi Commodity Exchange of India Ltd | Financial Services | 1.41% |
| Glenmark Pharmaceuticals Ltd | Healthcare | 1.38% |
| Central Depository Services Ltd | Financial Services | 1.36% |
| Exide Industries Ltd | Consumer Cyclical | 1.18% |
| Blue Star Ltd | Industrials | 1.18% |
| Computer Age Management Services Ltd | Technology | 1.08% |
| Amara Raja Energy & Mobility Ltd | Industrials | 0.99% |
| Karur Vysya Bank Ltd | Financial Services | 0.92% |
| Cyient Ltd | Industrials | 0.89% |
These top 10 holdings make up 12.04% of the ETF, offering broad-based exposure to industrials, financial services, healthcare, and technology sectors.
Performance of MOSMALL250 ETF
Since its launch in March 2024, the Motilal Oswal Nifty Smallcap 250 ETF has delivered strong returns, driven by the growing performance of small-cap companies. Given that it is a relatively new ETF, we will focus on its 3-month and 6-month returns.
Recent Returns:
- 3-Month Return: 8.25%
- 6-Month Return: 28.47%
Growth of ₹1 Lakh Investment
Let’s calculate how ₹1 Lakh would have grown over these periods based on the historical returns:
| Period | Return (%) | Investment Growth (₹) |
| 3 Months | 8.25% | ₹1,08,250 |
| 6 Months | 28.47% | ₹1,28,470 |
These impressive returns over a short period indicate the potential for high gains in the small-cap segment, particularly during periods of market recovery and expansion.
Sector Allocation
The MOSMALL250 ETF offers a well-diversified exposure to sectors that are crucial for India’s economic growth. Here’s the sector-wise breakdown:
| Sector | Weighting (%) |
| Consumer Cyclical | 11.48% |
| Financial Services | 19.72% |
| Industrials | 22.79% |
| Healthcare | 10.86% |
| Technology | 8.79% |
| Basic Materials | 13.20% |
| Utilities | 2.34% |
| Energy | 1.81% |
This diversified allocation ensures that the ETF benefits from the growth potential across various sectors, particularly in industrials and financial services.
Benefits of Investing in MOSMALL250 ETF
- Low Cost:
With an expense ratio of 0.30%, the ETF provides an affordable way to gain exposure to a broad range of small-cap companies without incurring high fees. - High Growth Potential:
Small-cap companies often outperform larger firms during periods of market expansion, offering investors the opportunity for above-average returns. - Systematic Investment Plans (SIPs):
By setting up a SIP through the Navia Zero Brokerage Stock Investing APP, investors can benefit from rupee cost averaging, which smooths out market volatility by investing regularly. - Diversification:
The ETF invests in 250 small-cap companies across different sectors, providing a well-rounded portfolio that reduces individual stock risk.
Steps to set up a SIP for the Motilal Oswal Nifty Smallcap 250 ETF (or any stock/ETF) using the Navia APP:
- Download and Log In to the Navia APP:
If you haven’t already, download the Navia APP from the app store, and log in using your credentials. - Go to Tools → Basket:
Navigate to the “Tools” section and select “Basket”. This feature allows you to create a basket of stocks/ETFs to invest in through a SIP. - Create a Basket:
Choose a name for your basket. Set up a Weekly or Monthly SIP depending on your preference.
- For Weekly SIP, select the day of the week you want the SIP to be executed.
- For Monthly SIP, choose the day of the month for the SIP to be executed.
- Add MOSMALL250 ETF (or another stock/ETF) to the Basket:
Use the “Add” option to add the MOSMALL250 ETF or any other ETF/stock of your choice to the basket. Select the quantity and price at which you want to buy. The market price is preferable when setting up a SIP. - Confirm and Activate the SIP:
Once the ETF or stock is added, confirm and activate the SIP. You can also edit the stock price or quantity anytime by using the “Edit” option. - Pause or Modify SIP if Needed:
You can always pause or modify the SIP (e.g., change the quantity or the stock price) using the “Edit” option.
By following these simple steps, you can set up a systematic investment plan for Motilal Oswal Nifty Smallcap 250 ETF or any other stock/ETF using the Navia APP, making it easy to invest regularly and build wealth over time.
Is MOSMALL250 ETF Right for You?
The Motilal Oswal Nifty Smallcap 250 ETF is an excellent choice for investors looking to tap into the growth potential of India’s small-cap sector. The ETF’s low-cost structure, strong recent performance, and broad sector exposure make it an ideal option for investors with a long-term investment horizon.
Whether you’re a seasoned investor or a beginner, the MOSMALL250 ETF can be an essential part of your stock market systematic investing strategy. By investing in this ETF through a SIP on the Navia Zero Brokerage Stock Investing APP, you can build wealth over time while benefiting from the growth of India’s small-cap companies.
Key Takeaways
- MOSMALL250 tracks the Nifty Smallcap 250 Total Return Index, covering the top 250 small-cap companies in India.
- The ETF launched in March 2024, so it has no long-term track record; the article shows only 3-month and 6-month returns.
- The article states an expense ratio of 0.30% and says the top 10 holdings are 12.04% of the fund, spread across industrials, financial services, healthcare and technology.
- A SIP can be set up on the Navia app through Tools > Basket, on a weekly or monthly cycle.
- No as-on date is given anywhere in this article for the returns, the holdings, the sector weights or the expense ratio, and the article does not state whether the ETF is currently available to buy. Check the current factsheet and market price before investing.
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Frequently Asked Questions
What is the Motilal Oswal Nifty Smallcap 250 ETF?
It is an exchange-traded fund that seeks to replicate the performance of the Nifty Smallcap 250 Total Return Index, which comprises the top 250 small-cap companies in India. Its NSE symbol is MOSMALL250.
When was MOSMALL250 launched?
The ETF was launched in March 2024, which is why the article focuses on its 3-month and 6-month returns rather than longer periods.
What is the expense ratio of MOSMALL250?
The article states an expense ratio of 0.30%. No as-on date is given for that figure, so confirm the current expense ratio from the fund’s latest factsheet before investing.
What are the top holdings of MOSMALL250?
The article lists ten holdings led by Crompton Greaves Consumer Electricals, Multi Commodity Exchange of India and Glenmark Pharmaceuticals, and states that the top 10 together make up 12.04% of the ETF. No as-on date is given for the holdings.
How do I start a SIP in MOSMALL250 on the Navia app?
Log in to the Navia app, go to Tools > Basket and create a basket, choose a weekly or monthly SIP and the day it should run, add MOSMALL250 with the quantity and price — market price is preferable for a SIP — then confirm and activate. You can pause or edit the SIP at any time using the Edit option.
Are the returns quoted in this article current?
No as-on date is given anywhere in this article for the returns, holdings, sector weights or expense ratio, and the article does not state whether the ETF is currently available to buy. Treat every figure here as a historical snapshot and check current data before investing.
DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit. Full disclaimer: https://bit.ly/naviadisclaimer
