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Motilal Oswal Mutual Fund has launched a new NFO - Motilal Oswal Services Fund, which will invest in India's fast-growing service sector. This fund will target companies like banking, IT, healthcare. This NFO will be open from 20 May to 3 June.

Motilal Oswal Mutual Fund House has come up with a new investment opportunity - Motilal Oswal Services Fund. This fund will invest money in companies that are related to the service sector of the country, such as companies providing services like banking, IT, healthcare, tourism and education. The NFO of this fund has opened from today i.e. 20 May, which will remain open till 3 June 2025. This is an open-ended equity scheme, that is, you can invest in it later also. The objective of this scheme is - to grow money in the long term, that is, to invest in companies that earn from the service sector and can give good returns in future.

5 experienced fund managers will manage this fund

Motilal Oswal Mutual Fund's new fund - Services Fund, is not just another scheme. It is an opportunity that is showing the way to profit from India's fastest growing sector - the service sector. This fund will be managed by 5 experienced fund managers: Bhalchandra Shinde, Ajay Khandelwal, Atul Mehra, Rakesh Shetty and Sunil Sawant. Its benchmark will be Nifty Services Sector Total Return Index. Now talking about its focus, this scheme will invest in companies that are related to the service sector or whose business directly or indirectly benefits from the growth of this sector.

This sector is the strongest and most stable contributor to the country's economy

According to research by Motilal Oswal Asset Management Company (MOAMC), India's service sector has become the strongest and most stable contributor to the country's economy. The average growth of this sector has been 8.3% between FY23 and FY25. The special thing is that service exports have also increased tremendously – which was 5.7% in FY24, it reached 12.8% from April to November of FY25. The contribution of this sector to the country's total Gross Value Added (GVA) has increased 109 times since FY14. Its share in GVA was 52% in FY16, which increased to 55% in FY24. In FY23, this figure had reached 56% - that is, its role in the country's economy is constantly increasing. Not only this, this sector is now also employing about 30% of the country's workforce. India's performance is also excellent at the global level - India ranks 7th in the world in service exports and its share is 4.3%.

Prateek Agarwal, MD and CEO, Motilal Oswal Asset Management Company, said - 'India's service sector is continuously showing strong and stable growth and has now become a major engine of the country's economic progress. Its increasing share in GDP, growing exports and digitalization and consumer demand are giving more strength to this sector. We believe that this sector can give investors great long-term opportunities in the coming years. Our new sectoral fund is designed to take advantage of this growth story, so that investors can be a part of this transformation of India.'

The benchmark has performed consistently well for the last 11 years

Fund manager Bhalchandra Shinde said - 'The service sector includes many industries - such as banking, IT, healthcare, tourism, education, among others - which are growing rapidly due to rising incomes, urbanization and digital adoption. India's hold in exports is also getting stronger. We see great potential for long-term growth in this sector in the coming times. Our fund will consider Nifty Services Sector TRI as its benchmark, which has performed consistently well in the last 11 years. He also said - 'This index was at the level of around 1000 in April 2014, which has reached 4518 in April 2025. Through this fund, we will identify quality companies whose business model is scalable, fundamentals are strong and which can benefit from the growth of this sector.