logo
NFO Update: Motilal Oswal Mutual Fund launches services fund

NFO Update: Motilal Oswal Mutual Fund launches services fund

Economic Times19-05-2025
ETMarkets.com Motilal Oswal's new services sector fund seeks long-term growth by investing in companies benefiting from India's expanding services economy. NFO runs from May 20 to June 3.
Motilal Oswal Mutual Fund has announced the launch of its latest new fund offer Motilal Oswal Services Fund, an open-ended equity scheme investing in the services sector.
The new fund offer or NFO of the scheme will open for subscription on May 20 and will close on June 3.
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 deriving the majority of their income from business in the services sector of the economy.
Also Read | Railways PSU ETF delivers 16% in a week. Is this the right opportunity for portfolio diversification?
The scheme will be benchmarked against Nifty Services Sector Total Return Index and will be managed by Bhalachandra Shinde, Ajay Khandelwal, Atul Mehra, Rakesh Shetty, and Sunil Sawant.
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, according to a release by the fund house.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, the release 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,' said Prateek Agrawal, MD & CEO, Motilal Oswal Asset Management Company.
Also Read | BSE and Adani Enterprises among stocks that HDFC Mutual Fund bought and sold in April 'Services sector encompasses a 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,' said Bhalachandra Shinde, Associate Fund Manager, Motilal Oswal Mutual Fund.'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,' he said.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Indian automobile industry may grow by 6-7% in FY26 amid damp consumer demand: Report
Indian automobile industry may grow by 6-7% in FY26 amid damp consumer demand: Report

Time of India

time39 minutes ago

  • Time of India

Indian automobile industry may grow by 6-7% in FY26 amid damp consumer demand: Report

The Indian automobile sector is expected to grow by 6-7 per cent in the fiscal year (FY26) amid damp consumer demand across most vehicle categories, according to a report by Motilal Oswal. As per the report, volumes in the two-wheeler category fell the highest compared to passenger vehicles (PV) and commercial vehicles (CVs) in the first quarter of FY26 (Q1FY26). The two-wheeler segment remained under pressure due to muted demand. In the April-June quarter of FY26, motorcycle sales fell by 9 per cent year-on-year, ICE scooter sales declined 5 per cent year-on-year, and moped volumes also slid by 11 per cent year-on-year. By contrast, the PV category posted a 1.4 per cent decline in volumes, with the small car segment being impacted significantly due to the volumes of key models such as Maruti Alto, Spresso, and Celerio witnessing sharp year-on-year declines in Q1FY26. The commercial vehicle (CV) segment, meanwhile, saw a marginal decline in volumes. While MHCV goods registered a 4.5 per cent dip, LCV goods fell by 0.5 per cent. However, bus sales remained a bright spot, with MHCV buses growing 7.6 per cent and LCV buses up 8.8 per cent. In terms of OEMs' performance, Tata Motors underperformed across all four CV sub-segments, while VE Commercial Vehicles (VECV) managed to outperform in most, according to Motilal Oswal. 'Our focus would be to deliver industry-beating growth (in FY26) because one, this year is possibly the strongest product cycle for us, and the freshest portfolio. We have a low base for FY25. On the SUV side also, we will be coming with a multipowertrain on Harrier and Safari, including the petrol version,' said Shailesh Chandra, MD, Tata Motors & Tata Passenger Electric Mobility, earlier at the Q4FY25 post-earnings conference call in May. Chandra had said that there would be re-varianting and repositioning of certain products in the portfolio. 'We have the full year for Nexon CNG and also, we will launch Sierra. So, even SUVs are going to be strong…it's going to be a very strong year for us,' he said. The top Tata Motors executive had said that the company will strengthen its value proposition of its existing EV products, in terms of value-price equation. 'It's going to be a strong year for us on the EV side also,' Chandra said. Its homegrown rival, Mahindra & Mahindra, too, is confident of growth this year. Nalinikant Gollagunta, CEO (automotive division) at Mahindra & Mahindra, said the company remains confident of mid-to-high teens growth in the SUV segment, along with strong double-digit export growth. He also reaffirmed guidance for high single-digit growth in LCVs for the full fiscal, according to a report by news agency ANI . The brokerage said that the industry may remain in a cautious phase in the near term, with a rebound largely dependent on rural demand recovery, fuel price stability, and broader economic conditions.

ITC to invest Rs 20,000 crore in new manufacturing units in medium term: Chairman Sanjiv Puri
ITC to invest Rs 20,000 crore in new manufacturing units in medium term: Chairman Sanjiv Puri

Economic Times

timean hour ago

  • Economic Times

ITC to invest Rs 20,000 crore in new manufacturing units in medium term: Chairman Sanjiv Puri

Diversified conglomerate ITC Ltd is said to invest Rs 20,000 crore in the medium term to expand its manufacturing footprint across sectors, Chairman Sanjiv Puri said on Friday. As part of its growth strategy, the company has already set up eight new manufacturing facilities across FMCG, Sustainable Packaging and export-oriented Value-Added Agricultural Products in recent years, he added. Puri said the company will prioritise its 'Bharat First' strategy-focusing on deepening its domestic presence, before making a significant overseas impact. He added that new brand launches are aimed at driving value accretion."Global turbulence has exposed the fragility of traditional supply chains," he said while addressing the annual general readiness is not merely about adapting to change, it is about anticipating, innovating and proactively shaping the future, Puri said. 65% of the company's revenue is from non-cigarette signed an agreement for acquisition of Century Pulp and Paper to scale up its paperboards proposed acquisition will substantially enhance capacity in a more cost-efficient fashion relative to a 1.4x higher investment and four-year gestation period required for a greenfield project of similar scale, the chairman added."India is the fastest-growing market in the world for paper and paperboards with demand growing at 6-7%, requiring industry to create an additional capacity of about 1 million MT per year for the next decade," Puri Paperboards, Paper & Packaging Segment of the company witnessed a challenging operating environment, with low-priced Chinese and Indonesian supplies in global markets including India, soft domestic demand conditions, leading to subdued portfolio of over 25 world-class Indian brands represents an annual consumer spend of over 34,000 crores and reach over 260 million households in India, the company said in a on India's economy, ITC's chairman said, "India's consumer market is at the cusp of a profound transformation with per capita incomes expected to exceed $4,000 by 2030. Gen Z, poised to become a predominant part of the workforce, is expected to account for every 2nd rupee spent by 2035."The company continues to explore opportunities to rapidly scale-up the newer FMCG businesses and evaluate emerging opportunities in this space, ITC's report is also setting up an integrated consumer goods manufacturing plant in Sandilla, Uttar Pradesh. Shares of ITC Ltd. were trading at Rs. 408.35 per unit after declining 0.40% by Rs 1.65 on BSE at 12:16 PM on Friday.

NFO Alert: Zerodha Mutual Fund launches multi-asset passive FoF
NFO Alert: Zerodha Mutual Fund launches multi-asset passive FoF

Time of India

time2 hours ago

  • Time of India

NFO Alert: Zerodha Mutual Fund launches multi-asset passive FoF

Zerodha Mutual Fund has announced the launch of Zerodha Multi Asset Passive FoF , an open-ended fund of fund scheme investing in units of Equity, Debt Index Funds/ ETFs, and Commodity ETFs. The new fund offer, or NFO of the fund, is open for subscription and will close on August 8. The fund will reopen for continuous sale and repurchase within five business days from the date of allotment of units under NFO. Explore courses from Top Institutes in Please select course: Select a Course Category Data Science Healthcare Data Science Others Digital Marketing others healthcare CXO MCA Degree Product Management Leadership Project Management Technology Management Public Policy Design Thinking Operations Management Artificial Intelligence Cybersecurity Data Analytics PGDM Finance MBA Skills you'll gain: Duration: 11 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Postgraduate Cert in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 30 Weeks IIM Kozhikode SEPO - IIMK-AI for Senior Executives India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Prof Cert in DS & BA with GenAI India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK DABS India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIT Madras CERT-IITM Advanced Cert Prog in AI and ML India Starts on undefined Get Details Also Read | Mutual fund houses launch over 100 passive funds in 2025. Will Sebi's new rules shift the trend? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Birla Evara 3 and 4 BHK from ₹ 1.75 Crore* Birla Estates Learn More The investment objective of the scheme is to provide diversified exposure across multiple asset classes—equity, debt, and commodities—through a passive investment approach. By blending asset classes with low correlation, this scheme seeks to offer better risk-adjusted returns while reducing overall portfolio volatility. The fund will be benchmarked against 60% Niy 200 TRI + 15% CRISIL 10 year Gilt Index + 25% Domestic prices of Physical Gold and will be managed by Kedarnath Mirajkar. The fund will offer only direct plans and only growth options. The exit load is nil. Live Events During the new fund offer (NFO), the minimum investment is Rs 100 and in multiples of Rs 100 thereafter. The minimum application amount for monthly SIP is Rs 100 with one minimum installment. The fund will allocate 50-70% in domestic equity ETFs/Index funds, 10-20% in domestic debt ETFs/Index funds, 20-30% in commodity ETFs, and 0-5% in debt securities and money market instruments. Also Read | This Rs 40,000 crore large & midcap fund multiplies lumpsum investment of Rs 1 lakh by 15 times in 15 years This passive fund has shared nearly 40 funds as the underlying funds. The cumulative gross exposure through equity, debt, commodity based mutual fund schemes and and such other securities/assets as may be permitted by SEBI from time to time should not exceed 100% of the net assets of the scheme. However, cash and cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. The fund is suitable for investors who are seeking long term wealth creation and want diversified exposure by investing across multiple asset classes viz., Equity, Debt Index Funds/ ETFs and Commodity ETFs.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store