Motilal Oswal Mutual Fund has launched the New Fund Offer (NFO) of the Motilal Oswal BSE Clean Environment Index Fund, an open-ended scheme that seeks to replicate and track the performance of the BSE Clean Environment Index. 

The NFO will open for subscription on June 5 and close on June 19, 2026. 

The fund is designed to provide investors with exposure to India's growing clean economy through a passive investment strategy. It tracks the BSE Clean Environment Index, which the fund house describes as India's first diversified index focused on the clean environment theme. 

The index offers exposure to five key segments of the clean economy — renewable energy, electric vehicles (EVs), water treatment, recycling, and waste management — sectors expected to benefit from India's energy transition, environmental commitments and long-term economic growth. 

The BSE Clean Environment Index comprises 25 companies operating across the clean economy value chain. Renewable energy companies account for nearly 86% of the index weight, while the balance is allocated across EVs, water treatment, recycling, and waste management businesses. 

Pratik Oswal, Chief of Passive Business at Motilal Oswal Asset Management Company, said the clean energy transition presents a significant long-term investment opportunity for India. "India spends about $150 billion annually on oil and coal imports, and that capital is increasingly being redirected towards solar energy, electric vehicles and clean infrastructure. Supported by strong policy initiatives, this represents one of the largest economic opportunities of the decade," he said. 

According to the fund house, the scheme aims to offer investors a transparent and rules-based avenue to participate in this structural shift through a low-cost passive investment vehicle. 

The equity component of the fund will be managed by Swapnil Mayekar, along with Associate Fund Manager Dishant Mehta, while Rakesh Shetty will oversee the debt component. 

The fund house noted that, as an index fund, the scheme will follow a passive investment approach and invest primarily in securities that form part of the underlying index, regardless of market conditions. It also highlighted that the scheme carries concentrated thematic exposure, with performance likely to be influenced by regulatory developments, government policies, technology adoption trends and capital expenditure cycles within clean environment-related sectors.