PRESS RELEASE

Motilal Oswal Mutual Fund (MOMF) Launches ‘Motilal Oswal Services Fund’

The NFO opens on 20^th May 2025 and closes on 3^rd June 2025

Mumbai, 19^th 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: 20^th May 2025 to 3^rd 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).

The above Product labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.

Scheme-specific risk factors are detailed in the Scheme Information Document (SID) of the fund available at: https://www.motilaloswalmf.com/CMS/assets/uploads/Documents/d3831-1.-annexure-i-nfo-sid-motilal-oswal-services-fund_clean.pdf

 


About Motilal Oswal Asset Management Company:
Motilal Oswal Group possesses a legacy in equities for over 3 decades. Motilal Oswal Asset Management Company Ltd. (MOAMC) is registered with SEBI as the Investment Manager for Motilal Oswal Mutual Fund. It was incorporated on November 14, 2008. It provides Investment Management and Advisory Services to investors based within and outside India and has Mutual Funds, AIFs and Portfolio Management Services business.

Disclaimer: This release has been issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material fact. The Stocks (if any) mentioned herein is for explaining the concept and shall not be construed as an investment advice to any party. The information / data herein alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions, figures, estimates and data included in this article are as on date. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible/liable for any decision taken on the basis of this article. This is a sectoral fund focused on the services sector and excludes manufacturing companies. Performance may vary significantly from the broader market and involves sector-specific risks. Past performance or sector trends do not guarantee future returns.  

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

For further details contact:
Rohini Kute
Head, Corporate Communication,
Motilal Oswal Financial Services
Mobile: 9820196838
Mail: rohini.kute@motilaloswal.com