Motilal Oswal BSE Clean Environment Index Fund NFO

May 15, 2026

RA Jainee

📌 Fund Snapshot & Key Details

Particulars	Details
Fund House	Motilal Oswal Mutual Fund
Scheme Type	Open-ended
Category	Equity: Thematic
Benchmark	BSE Clean Environment TRI
NFO Opens	05 June 2026
NFO Closes	19 June 2026
Plan / Option	Growth
Minimum Investment (Rs.)	500
Exit Load	1% for redemption within 15 days
Lock-in Period	NA
Riskometer	Very High
Registrar	KFin Technologies Ltd.

⚖️ Sahifund NFO Review

PLUS

• Focuses on clean environment and sustainability theme which may benefit from India’s long-term green transition and energy reforms.
• Passive index approach avoids fund manager stock-picking bias in a fast-evolving thematic sector.
• Low minimum investment of Rs. 500 improves accessibility for retail SIP investors.
• Benchmark methodology requires companies to derive meaningful revenue from clean environment businesses.
• Diversified exposure across renewable energy, clean technology, waste management and environmental solutions.
• Motilal Oswal AMC has built strong investor credibility in thematic and passive investment products.
• Global ESG and sustainability trends can support long-term capital flows into green businesses.
• ETF/index style investing can provide disciplined participation in emerging environmental themes.

MINUS

• Thematic investing carries significantly higher volatility than diversified equity funds.
• Clean environment businesses can remain expensive and valuation-sensitive during market corrections.
• Limited historical benchmark track record makes long-term return expectations uncertain.
• Sector/theme concentration increases cyclical and regulatory risks.
• Returns can remain weak for extended periods if green energy sentiment cools globally.
• Passive structure means no defensive fund manager action during sharp corrections.
• Many underlying businesses may still be mid-cap or emerging companies with elevated volatility.

Sahifund View (Decisive Line)

A high-risk thematic bet on India’s environmental and sustainability transition, suitable only for aggressive long-term investors allocating modest satellite exposure.

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⏱️ Last Updated: 15 May 2026, 10.00 AM

📊 Sahifund Interpretation of the Benchmark

BSE Clean Environment TRI

The BSE Clean Environment TRI is designed to capture companies participating in clean energy, environmental sustainability, resource efficiency and green infrastructure themes.

The index includes businesses deriving at least 25% revenue from clean environment-related activities, making it more theme-focused than generic ESG indices.

The 15% stock cap methodology attempts to reduce excessive concentration risk from a handful of dominant companies.

Benchmark Portfolio Characteristics

Parameter	Details
Theme	Clean Environment
Index Type	Thematic Equity
Stock Capping	15% Maximum Stock Weight
Revenue Filter	Minimum 25% from Clean Environment Activities
Coverage	Green & Sustainability Businesses
Rebalancing	Periodic
Investment Style	Passive Thematic

Sahifund Insight:

The benchmark reflects a structural long-term theme linked to renewable energy, electrification, pollution control and sustainability. However, thematic cycles can remain volatile and sentiment-driven for long periods.

🧠 Investment Strategy – Explained Simply

The scheme seeks to replicate the BSE Clean Environment Index and generate returns broadly corresponding to benchmark performance, subject to tracking error.

In simple terms, investors gain exposure to companies participating in India’s environmental transition rather than selecting individual green-energy stocks themselves.

The strategy works best for investors who believe sustainability and clean environment sectors can become major long-term growth drivers in India.

👤 Sahifund Interpretation of Fund Managers & Their Performance

Dishant Mehta

• Over 11 years of market experience across equities, derivatives, commodities and currencies.
• Exposure to multiple market segments may help execution efficiency in passive portfolio management.

Swapnil P Mayekar

• Strong finance and market ecosystem experience with long capital market exposure.
• Operational experience useful for index fund implementation and fund processes.

Rakesh Shetty

• Experience in ETFs, debt and equity index products along with product development expertise.
• Particularly relevant for passive fund execution, tracking discipline and index replication.

Sahifund Assessment:

For passive thematic index funds, execution quality and tracking efficiency matter more than aggressive stock-picking ability.

Motilal Oswal AMC has meaningful experience in passive and thematic products, which improves operational confidence for this NFO.

🎯 Suitable for Which Investors?

Suitable if you:

• Believe clean energy and sustainability themes have long-term growth potential.
• Want thematic exposure beyond traditional sectors.
• Already hold diversified equity funds.
• Can tolerate high volatility.
• Have 7+ year investment horizon.

Avoid if you:

• Are a first-time equity investor.
• Prefer stable diversified portfolios.
• Need predictable short-term returns.
• Are uncomfortable with thematic concentration risk.

❓ Should You Invest in This NFO?

This NFO may appeal to investors optimistic about India’s clean energy, ESG and environmental transition over the next decade.

However, thematic investing should never become the core of an equity portfolio because returns can remain cyclical and sentiment-driven.

For most retail investors, diversified flexicap or index funds should remain the primary allocation, while this fund can be considered only as a small satellite thematic exposure.

Final Word:

Interesting long-term sustainability theme, but allocate conservatively and only through disciplined SIP investing.

⚠️ Disclaimer

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.

Quicklinks

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