#NFO #AxisMutualFund #AxisMFServicesOpportunitiesFund #AxisServicesOpportunitiesFund #IndiaServicesLedGrowth
Chandigarh: Axis Mutual Fund, one of India’s most prominent asset management companies, has introduced its latest thematic equity scheme — the Axis Services Opportunities Fund. With a focus on capturing India’s rapidly evolving services economy, the fund opens for subscription on July 4, 2025, and closes on July 18, 2025, under its New Fund Offer (NFO).
This open-ended equity scheme seeks to invest in companies that are at the forefront of India’s services-led transformation. By tapping into the country’s most dynamic and capital-efficient businesses, Axis AMC aims to offer long-term capital appreciation to investors through this new thematic opportunity.
Fund Overview
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Category: Thematic – Services
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Benchmark: NIFTY Services Sector TRI
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NFO Period: July 4 to July 18, 2025
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Fund Managers: Mr. Shreyash Devalkar, Mr. Sachin Relekar, and Ms. Krishnaa Narayan
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Minimum Application: ₹100 and in multiples of ₹1 thereafter
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Exit Load:
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Within 12 months: 1% (except 10% of investment, which is exempt)
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After 12 months: Nil
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This scheme adds to Axis AMC’s expanding suite of thematic funds, joining the ranks of the Axis Consumption Fund and Axis India Manufacturing Fund, each targeting key drivers of India’s long-term structural growth.
India’s Services Economy: A Pillar of Progress
India’s services sector is a cornerstone of its economic engine. In FY24, it contributed over 55% to the nation’s GDP and supported 41% of employment. From traditional industries like banking and telecom to emerging ones like fintech, health tech, e-commerce, logistics, and digital platforms, the breadth of the services domain is vast—and growing rapidly.
According to data from Axis Mutual Fund, the services sector has undergone a significant transformation in recent years, driven by digital adoption, urbanisation, rising disposable incomes, and a pro-reform policy environment. With India’s economy projected to maintain strong GDP growth through 2047 and beyond, services are poised to be the dominant contributor to national income, innovation, and job creation.
A Thematic Bet on High-Growth Service Industries
The Axis Services Opportunities Fund is designed to capture this structural trend by investing at least 80% of its assets in service-oriented companies, as defined by the Nifty Services Sector TRI—a benchmark tracking 48 distinct service industries.
The fund’s potential investment universe includes sectors such as:
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Financial Services
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Information Technology
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Telecom
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Healthcare and Health Tech
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E-Commerce and Logistics
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Fintech and Digital Platforms
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Entertainment and Media
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Power Distribution and Other Service Providers
The strategy will adopt a bottom-up stock selection approach, focusing on quality businesses that exhibit scalable business models, high return on capital employed (ROCE), sustainable profit margins, and competitive advantages.
Strategic Commentary from Axis AMC
B. Gopkumar, MD & CEO of Axis AMC, emphasized the fund’s alignment with India’s long-term growth trajectory:
“India’s future growth is increasingly expected to be service-led, and the structural tailwinds for this sector are both deep and durable. With the Axis Services Opportunities Fund, we’re offering investors an actively managed vehicle designed to ride this transformation. Whether it’s established sectors like banking or emerging areas like fintech and healthcare, we are curating a high-conviction portfolio built for the future.”
Mr. Ashish Gupta, CIO of Axis AMC, added that the fund reflects a disciplined investment philosophy:
“Our approach is to rigorously identify companies that demonstrate not only scale, but also strong capital efficiency, sustainable earnings, and long-term resilience. We believe our bottom-up process will enable us to unlock value across India’s diverse service landscape. The services theme is not just broad—it’s dynamic, offering opportunities for consistent, risk-adjusted returns.”
Why Now?
The launch of this fund comes at a pivotal time. The profit share of services within the NSE 500’s PAT pool has grown to 53% in FY24, reflecting a decisive shift in earnings leadership. While services dominate in terms of revenue and market potential, many companies within this space still offer attractive valuations—especially when measured on ROE and ROCE metrics.
Another key factor is the increasing divergence in sector performance within services. For example, financial services and IT frequently move in opposite market cycles. An actively managed fund like Axis Services Opportunities Fund is well-positioned to harness this divergence, optimizing returns while minimizing risk through smart allocation and timing.
Complementing a Broader Thematic Strategy
This launch complements Axis AMC’s broader strategy of offering targeted thematic funds that allow investors to align their portfolios with India’s long-term macroeconomic themes. With Axis Consumption Fund targeting domestic demand and Axis India Manufacturing Fund riding the industrial revival, the Axis Services Opportunities Fund now completes a trilogy focused on the three core engines of India’s growth: consumption, manufacturing, and services.
Together, these thematic strategies enable investors to adopt a multi-pronged, future-ready approach to wealth creation.
Final Take
With India poised to become a $10 trillion economy in the coming decades, and services expected to be its primary growth driver, the Axis Services Opportunities Fund provides a timely and focused investment route into this theme. For investors looking for long-term capital appreciation, exposure to capital-efficient, service-led businesses, and the backing of an experienced fund management team, this fund presents a compelling opportunity.
As the NFO window opens from July 4 to July 18, Axis Mutual Fund invites investors to participate in India’s services-led journey through a professionally managed, research-driven, and thematically robust equity scheme.
Sources: Axis Mutual Fund Research, NSE Indices, SEBI, BSE, Bloomberg, MFI Data (as of June 2025)
