# Motilal Oswal suggests 50:40:10 equity mutual fund mix 2026-09-28T19:42:15+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Motilal Oswal Private Wealth has recommended a 50:40:10 allocation across equity mutual fund categories, according to its September report 'A Tale of Two Currents'. The framework suggests 50% in mid- and small-cap funds, 40% in hybrid and large-cap funds, and 10% in global equities or international funds. The wealth manager has a neutral short-term view on equities but is positive over the long term. It advises lump-sum investments in hybrid funds at current levels and a staggered approach for pure equity funds over the next two to three months, adding that any sharp correction should be used for aggressive deployment. The report notes that the Nifty 50 is trading at 18.3 times 12-month forward P/E, about 12% below its historical average of 20.9 times. Mid- and small-caps remain at a premium to their 10-year averages, though these premiums have moderated from September 2024 levels. ## Indian Opinion Analysis Motilal Oswal's framework targets a sweet spot between India's resilient domestic growth and external headwinds like crude prices and global yields. The 50% weight to mid- and small-cap funds is aggressive by historical standards, reflecting the firm's bullish bet on domestic earnings momentum. Yet the 10% global allocation acts as a hedge, a shift from the near-zero international exposure many Indian portfolios carried before 2022. Investors should note that the Nifty's P/E discount to its average is narrow, and mid- and small-cap premiums remain elevated despite recent moderation. The actual test will be whether a sharp correction arrives in the next three months as Motilal expects, or if markets drift higher, making the staggered approach costlier. The report's specific fund picks, including balanced advantage and aggressive hybrid schemes, signal a preference for downside protection over pure beta. ## Coverage - livemint.com Tags: equity mutual funds, hybrid funds, mid-cap funds, Motilal Oswal, Nifty 50, small-cap funds Canonical: https://indianopinion.org/motilal-oswal-suggests-504010-equity-mutual-fund-mix/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/motilal-oswal-suggests-504010-equity-mutual-fund-mix/#story-in-brief