The NFO opens on 20th May 2025 and closes on 3rd June 2025
FinTech BizNews Service
Mumbai, 19 May 2025: Motilal Oswal Mutual Fund (‘MOMF’) has announced the launch of its latest new fund offer “Motilal Oswal Services Fund.” The fund is an open-ended equity scheme investing in the services sector.
Key Fund Details:
NFO Period: 20th May 2025 to 3rd June 2025
Investment Objective: The primary objective of the Scheme is to generate long-term capital appreciation by investing in equity or equity related instruments across market capitalization of companies derive the majority of their income from business in the Services sector of the economy. However, there can be no assurance that the investment objective of the scheme will be realized.
Benchmark: Nifty Services Sector Total Return Index
Portfolio Strategy: The scheme aims to generate long-term capital appreciation by investing in equity or equity related investments of companies that are engaged directly or indirectly or expected to benefit from the growth and development of the Services sector in India.
According to MOAMCs internal research, India’s services sector has emerged as the most consistent and resilient contributor to the country’s Gross Value Added (GVA), reflecting stable performance. Between FY23 and FY25, the sector achieved growth of 8.3%, underpinned by a surge in services exports, which accelerated to 12.8% in April–November FY25 from 5.7% in FY24. The sector’s significance is further highlighted by its massive 109-fold increase in contribution to total GVA since FY14. As a share of total GVA, the sector grew from 52% in FY16 to 55% in FY24, peaking at 56% in FY23. This highlights the services sector’s growing role in India’s economic output and its contribution to employment,, currently supporting nearly 30% of the workforce. On the global stage, India ranks 7th in services exports, with 4.3% share. Notably, the sector has remained in the expansionary zone for 41 consecutive months since August 2021, underscoring its stability and long-term growth potential.
Prateek Agrawal, MD & CEO, Motilal Oswal Asset Management Company said, “India’s services sector has consistently demonstrated strong and resilient growth, emerging as a key driver of the country’s economic development. With its rising contribution to GDP, robust export potential, and growing digital and consumer-driven demand, we believe the sector may offer compelling long-term investment opportunities. Our new Sectoral fund is designed to tap into this structural growth story and enable investors to gain exposure to the services-led transformation of India’s economy.”
Bhalachandra Shinde, Associate Fund Manager, Motilal Oswal Mutual Fund said, “Services sector encompasses aa wide range of industries—benefiting from rising incomes, urbanization and digital adoption. With structural tailwinds and improving export competitiveness, we see long-term potential across this sector. The fund will be benchmarked against Nifty Services Sector Total Return Index (TRI) which has shown an upward trend over the 11-year. From an initial level around 1000 in April 2014, the index has steadily increased, reaching a level of 4518 by April 2025. Our investment approach will focus on identifying quality businesses with scalable models and strong fundamentals that are well-positioned to benefit from this sector.”
The fund will be managed by Mr. Bhalachandra Shinde (Associate Fund Manager-Equity Component), Mr. Ajay Khandelwal and Mr. Atul Mehra(Fund Managers – Equity component), Mr. Rakesh Shetty (Fund Manager - Debt Component), and Mr. Sunil Sawant (Fund Manager - Overseas Securities).
