Motilal Oswal Digital India Fund
Direct · GrowthAI Summary
The Motilal Oswal Digital India Fund has delivered a 1-year XIRR of -3.02%, significantly underperforming the category average of 14.10% and the NIFTY 50 benchmark's -2.9% CAGR over the same period. Over longer horizons, the fund's CAGR remains near zero (0.34% over 3 years) while the benchmark has also been flat, but the fund has generated positive alpha of 1.27% over 3 years, indicating slight outperformance on a risk-adjusted basis. Calendar year returns have been negative in 2025 (-1.2%) and 2026 (-3.56%), with only a modest 6.48% gain in 2024.
The fund exhibits high volatility with a beta of 1.15 relative to the NIFTY 50, amplifying both upside and downside moves. Maximum drawdown is shallow at -0.30% but the fund has experienced two drawdown events exceeding 10%, and the maximum drawdown duration of 117 days with no recovery yet suggests prolonged weakness. The Calmar ratio of -0.09 over 1 year indicates poor risk-adjusted returns, as the fund's negative return is not compensated by its drawdown profile.
The portfolio is highly concentrated in IT - Software, which accounts for 46.4% of assets, with top 10 holdings representing about 58% of NAV. Key holdings include Birlasoft, Zensar, Coforge, and Hexaware, all in IT services, along with fintech and retail names like One 97 Communications and Info Edge. With only 19 total holdings, diversification is limited, and the fund is heavily exposed to the digital and technology theme, which has been under pressure recently.
The fund's 1-year XIRR of -3.02% is drastically below the category average of 14.10%, placing it in the bottom quartile of sectoral/thematic peers. Over 3, 5, and 7 years, the fund's returns are near zero, while category averages are in the 16-17% range, indicating persistent underperformance. The fund has not shown consistency, with negative returns in two of the last three calendar years, and its alpha over the benchmark is minimal, suggesting it is not adding significant value relative to its sector.
This fund is suitable only for aggressive investors with a high risk tolerance and a long-term horizon (7+ years) who are specifically bullish on the digital and IT services theme. Given the high concentration and recent poor performance, it is not appropriate for core portfolio allocation or for investors seeking steady returns. Investors should be prepared for significant volatility and potential prolonged drawdowns, and should consider this as a satellite holding with a small allocation.
- Positive alpha over the NIFTY 50 across all time horizons, indicating the fund has outperformed the benchmark on a risk-adjusted basis.
- High upside capture ratio of 113-115%, meaning the fund participates more than the benchmark in up markets.
- Low expense ratio of 1.04% for a sectoral fund, which is competitive and helps in cost efficiency.
- Severe underperformance versus the category average, with 1-year XIRR of -3.02% versus 14.10% for peers.
- High concentration in IT - Software (46.4%) and only 19 holdings, leading to elevated sector-specific risk and limited diversification.
- Negative returns in 2025 and 2026, with no recovery from maximum drawdown, indicating ongoing weakness and potential for further losses.
Generated on 29-08-2026, 2:57 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.01 L | -3.0% | -42.7% | 24.2% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | -3.0% | 14.4% | 14.1% | -17.4% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | -2.8% | -2.7% | -16.9% | 8.8% | -1.62 | -0.85 | 36% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +3.71 | 1.15 | 113.2% | 108.3% | -0.6% | -2.9% |
| 3 Years | +1.27 | 1.15 | 114.9% | 112.1% | 0.3% | 0.0% |
| 5 Years | +1.15 | 1.15 | 114.9% | 112.1% | 0.2% | 0.0% |
| 7 Years | +1.10 | 1.15 | 114.9% | 112.1% | 0.1% | 0.0% |
| 10 Years | +1.05 | 1.15 | 114.9% | 112.1% | 0.1% | 0.0% |
| 12 Years | +1.04 | 1.15 | 114.9% | 112.1% | 0.1% | 0.0% |
| 15 Years | +1.03 | 1.15 | 114.9% | 112.1% | 0.1% | 0.0% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Birlasoft Limited | 7.71% |
| 2 | Zensar Technologies Ltd | 7.18% |
| 3 | Coforge Limited | 6.85% |
| 4 | Hexaware Technologies Limited | 6.07% |
| 5 | Eternal Limited | 5.99% |
| 6 | One 97 Communications Limited | 5.72% |
| 7 | Sonata Software Ltd | 5.53% |
| 8 | Firstsource Solutions Ltd | 4.58% |
| 9 | Info Edge India Ltd | 4.43% |
| 10 | Emmvee Photovoltaic Power Limited | 4.32% |