New NFO announced by Motilal Oswal Mutual Fund; Huge investment opportunity in clean energy and environment sector

Motilal Oswal Mutual Fund has announced its new fund offering i.e. NFO. The fund is named “Motilal Oswal BSE Clean Environment Index Fund” and is an open-ended fund that tracks the ‘BSE Clean Environment Index Fund’. This NFO starts on Friday, June 5, 2026 and closes on Friday, June 19, 2026.
The fund tracks the ‘BSE Clean Environment Index Fund’, India’s first diversified index for the clean economy. It provides an easy way for investors to participate in five major change-making topics; such as renewable energy, electric cars, water treatment, waste recycling and waste management; All these issues are a key part of India’s energy transition, its responsibility towards the environment and its long-term economic progress.
The objective of this NFO is to give investors an opportunity to participate in this major change through a transparent and rules-based passive approach. ‘The BSE Clean Environment Index Fund comprises around 25 companies across the clean economy chain, with renewable energy accounting for around 86% of the index and the remainder split across electric cars, water, recycling and waste management.

Key Details of the Fund:

Duration of NFO – 5 June 2026 to 19 June 2026
Scheme Type – ‘Open-ended fund tracking BSE Clean Environment Index Fund.
Benchmark – Total Return Index of ‘BSE Clean Environment Index Fund
Investment Objective – To provide a return before expenses commensurate with the total return of the securities represented by the BSE Clean Environment Index, subject to tracking error. But no assurance or guarantee can be given that the investment objective of the scheme will be achieved.

Minimum investment amount

During NFO: Lump sum: ₹500/- and thereafter in multiples of ₹1/-
On: Lump sum: ₹500/- and thereafter in multiples of ₹1/-
1% if redeemed on or before 15 days from date of allotment; Nothing after that
Exit load
1% if redeemed on or before 15 days from date of allotment; Nothing after that.
Tax rules
LTCG: 12.5% ​​on profits above ₹1.25 lakh (investment held for more than 12 months) | STCG: 20% (if held ≤12 months) (Since the nature of results is individual, each investor is advised to consult his own tax advisors/authorized dealers regarding the specific amount of tax and other consequences arising from his participation in the schemes)

Investor Information

Investors seeking long-term capital growth through passive investment in India’s clean environment concept

On the occasion of the launch, Pratik Oswal, Head of Passive Business, Motilal Oswal Asset Management Company said, “India spends $150 billion annually on oil and coal imports and this capital is now being diverted domestically, into solar energy, electric vehicles (EVs) and clean infrastructure. Backed by strong government policies, this is one of the biggest economic opportunities of this decade. Motilal Oswal BSE Clean Environment Index Fund provides an easy, low-cost opportunity for investors to participate in this transformation and build their stake in India’s sustainable future.”
The management of this fund for the equity component is Mr. Swapnil Mayekar and Shri. From Dishant Mehta (Associate Fund Manager), also for the Debt component Shri. It will be done by Rakesh Shetty.
Investments in Motilal Oswal BSE Clean Environment Index Fund can be made through licensed mutual fund distributors, online platforms or directly through www.motilaloswalmf.com.

Product Labeling:

This product is suitable for investors who are looking*
Risk measure of the scheme
Benchmark Risk Measure – BSE Clean Environment TRI
Long term capital growth
Returns in line with BSE Clean Environment Index subject to tracking error

If in doubt as to whether this product is suitable for them, investors should consult their financial advisors.
The above product labeling given during NFO is based on internal evaluation of scheme characteristics or sample portfolio and may change after NFO after actual investment. The above mention of sectors should not be construed as a recommendation or investment advice and should not be used to formulate or implement an investment strategy. As the scheme is index-based, it follows a passive investment technique and will invest only in securities included in a selected index, irrespective of market conditions. The scheme invests primarily in companies engaged in clean environment related activities, thereby creating concentrated investment risk in a specific subject area. The performance of the scheme is therefore closely related to regulatory developments, government policies, technology adoption and capital expenditure cycles in these sectors.