New Delhi, April 29 -- Motilal Oswal Asset Management Company's proposed new fund-Motilal Oswal BSE 1000 Index Fund-will be passively managed and track the newly launched BSE 1000 index. But should investors consider putting their money into a fund tracking a 1,000-stock index?

First, let's look at the numbers.

Motilal Oswal's new fund will invest in BSE 1000 stocks according to their weight in the index. Hence, the index's historical performance can indicate how Motilal Oswal's fund might perform compared with other index funds.

Over the past 10 years, the BSE 1000 index has delivered annualised returns of 13.42%, slightly better than the BSE 500's 13.17% returns over the same period.

Their returns are similar over three-year and fiv...