Motilal Oswal Nifty Microcap 250 Index Fund subscriptions discontinued: All you need to know

According to the AMC, the decision to discontinue subscription in units of the microcap index fund has been taken in consultation with SEBI as microcap is not defined as a category based on market capitalisation.

"This is to notify that subscription in units of Motilal Oswal Nifty Microcap 250 Index Fund has been discontinued with immediate effect i.e. cut off time of January 08, 2026. This is issued in consultation with SEBI as microcap is not defined as category based on market capitalization," the AMC said.

How the discontinuation will be implemented

In a notice-cum-addendum, the AMC shared that the discontinuation of the micro-cap fund will be implemented in the manner specified below:

Any fresh and additional purchases through lump sum mode and switch-in transactions into the scheme from any other schemes of Motilal Oswal Mutual Fund has been discontinued.

There will be no fresh registrations allowed under the systematic investment plan (SIP) and systematic transfer plan (STP).

According to the AMC, existing SIPs and STPs have been paused with effect from January 8, 2025.

Moreover, any subscription amount received, including SIP, STP etc., after the applicable cut-off time on the effective date will not be processed. Such an amount will be refunded to the respective investors, without any interest.

Switch-in transactions received till January 8, 2026, up to the cut-off time will be processed.

How the scheme has performed till now

Motilal Oswal Nifty 250 Microcap Index Fund is an open-ended passive fund, replicating the Nifty Microcap 250 Total Return Index. The scheme invested in the top 250 companies in terms of total market capitalisation after Nifty 500 companies.

The microcap segment represents only 3% of the overall listed market capitalisation.

As per the scheme's latest factsheet, it had a total AUM of ₹2625 crore as of December 31, 2025.

In the last one year, the scheme delivered -2.68% returns compared to the benchmark return of -0.7%.

Since its inception in 2023, the microcap scheme delivered an annualised return of only 5.3% compared to the benchmark return of 7.43%.