NFO: Motilal Oswal MF launches Services Fund, Open on 20 May

#MotilalOswalMFServicesFund

Chandigarh: Motilal Oswal Mutual Fund has launched the Motilal Oswal Services Fund, an open-ended equity scheme focused on India’s services sector. The New Fund Offer (NFO) will open on Tuesday (May 20) and close on June 3, 2025.

The scheme aims to generate long-term capital appreciation by investing in equity and related instruments of companies that derive most of their income from the services sector. It will invest across market capitalizations. The fund’s benchmark is the Nifty Services Sector Total Return Index (TRI).

The investment strategy focuses on identifying companies expected to benefit from the expansion of India’s services sector. According to internal research, the services sector grew 8.3% between FY23 and FY25 and now contributes 55% to India’s GVA, up from 52% in FY16. It also supports nearly 30% of India’s workforce and has maintained consistent expansion since August 2021.

“India’s services sector is a major driver of economic growth,” said Prateek Agrawal, MD & CEO, Motilal Oswal AMC. “Our new fund provides investors a way to participate in the sector’s long-term growth story.”

Associate Fund Manager Bhalachandra Shinde added that the services sector includes diverse industries gaining from digital adoption, rising incomes, and urbanization. He noted the benchmark index rose from around 1000 in April 2014 to 4518 by April 2025.

Investors are advised to review the Scheme Information Document (SID) and consult their financial advisors before investing. The product label and portfolio strategy may evolve post-NFO based on actual investments.