
NFO Update: Motilal Oswal Mutual Fund launches services fund
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.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View
Details
»
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.
Live Events
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.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Mint
3 hours ago
- Mint
Mahanagar Gas stock valuations turn attractive after 30% fall in 8 months. Time to buy?
Mahanagar Gas share price in focus today: Mahanagar Gas, which is engaged in the business of City Gas Distribution (CGD), has seen its share price hammered by Dalal Street investors in recent months, resulting in a 30% decline over the past eight months, falling from ₹ 1,988 to the current trading level of ₹ 1,393 apiece. The weakness in the stock was driven by pressure on margins due to higher raw material costs, coupled with multiple APM de-allocations and a lack of clarity regarding future APM allocations. However, domestic brokerage firm Motilal Oswal believes the recent correction has made the stock's valuation attractive and maintains a positive stance on the stock. The brokerage said that company fundamentals are undergoing a transformative shift, citing two emerging tailwinds: weaker crude prices and a lower pricing slope for natural gas. It notes that the weak crude price outlook, along with an impending LNG glut, will likely lower gas costs for CGD companies. While Brent crude prices averaged USD 75.8 per barrel in Q4FY25, Motilal forecasts Brent to average USD 65 per barrel in FY26 and FY27. According to the brokerage, every USD 10 per barrel decline in Brent prices reduces the landed cost of natural gas by USD 2.3 per mmbtu. Further, Motilal's discussions with the listed and unlisted Indian CGD companies indicate that new long-term gas contracts are already being signed for a 1.0-3% lower slope, given the expected surge in LNG supply in 2HFY26 and beyond. The company, in the recent analyst meet, maintained its over 10% YoY volume growth guidance for the next 2-3 years, while Motilal expects a 10% CAGR in volume over FY25-27, driven by multiple initiatives implemented by the company, such as collaborating with OEMs to drive conversions of commercial CNG vehicles and providing guaranteed price discounts to new I/C-PNG customers. According to the management, EVs have limited overlap with the typical CNG customer base. Further, 15 BEST depot CNG stations shall now be available for specific commercial vehicles for fueling, subject to prior registration. By FY30, the company aims to add 250 CNG filling stations and upgrade existing stations. Further, the 1 GW battery manufacturing factory, entailing a capex of ₹ 9 billion (MGL's equity stake: 40%), shall start in 12-14 months. Further, while both CBG and LNG business segments are at the initial stages, the company believes in scaling up these businesses rapidly over the next few years, said the brokerage. Mahanagar Gas remains the brokerage's preferred pick among CGDs and retained its estimates as it forecasted the company's volumes to clock a 10% CAGR over FY25-27 and estimated an EBITDA margin of ₹ 10/scm during the period. It reiterated 'buy' with a price target of ₹ 1,760 apiece. The stock currently trades at 11x FY27E EPS of ₹ 121. The brokerage valued the stock at 15x FY27E EPS to arrive at its price target of ₹ 1,760. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.


Time of India
5 hours ago
- Time of India
Rs 13 lakh crore boom, but Q4 sends a wake-up call to smallcap investors
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Even as retail investors pour into smallcap stocks chasing a stunning Rs 13 lakh crore boom over the last two months, the Q4 earnings season saw smallcap segment companies suffering the to JM Financial, smallcaps recorded the highest proportion of earnings misses in Q4FY25—31% of companies underperformed expectations, compared to 28% in midcaps and just 17% in largecaps. Out of 143 smallcaps tracked, 45 missed estimates while only 32 met message from Motilal Oswal Financial Services (MOFSL) was even more blunt: 'The smallcap segment has been a laggard, recording not only weaker-than-expected numbers but also a notable aggregate PAT decline of 16% YoY.'Sales were up 5%, but EBITDA dropped 6% and PBT plummeted 22%. The pain points? Smallcap financials and retail took a heavy the NBFC-lending segment, earnings collapsed by a massive 68% YoY, driven by weak revenue and poor asset quality—especially among microfinance institutions. This one segment alone accounted for over 92% of the total PAT decline in the smallcap smallcap private banks and insurers weren't spared. Private banks posted a 21% drop in profits, while insurers like Star Health reported operating losses and a token PAT—down 100% names in the smallcap space saw a 34% fall in profits, dragged by soft demand and restaurant chains slipping into losses—unlike their mid and largecap counterparts that delivered (-23% PAT), Oil & Gas (-51%), and even Tech (-1%) added to the misery. Consumer names posted just 7% PAT growth, while Cement was flat at 3%, Motilal yet, there were pockets of strength. Capital Goods stood out with 49% YoY PAT growth, beating both mid and large peers. Chemicals rebounded with 36% profit growth. Other stars included Consumer Durables (+64%), EMS (+52%), Staffing (+61%), and Real Estate (+37%).Still, the broader picture remains one of caution.'Mid and smallcap stocks where growth is faltering but valuations are still high are in the penalty box,' said Trideep Bhattacharya, CIO – Equities, Edelweiss Mutual Fund. 'At the end of the day, we are bottom-up stock pickers and we are fine with largecap valuations. Within mid and smallcaps, we advise selectivity as a strategy in the sense that wherever there is a valuation premium, we make sure that there is an earnings growth premium that comes along with it.'Bhattacharya added that small and midcaps are currently trading 17–25% above their 10-year average valuations—unjustified unless backed by Appala, Fund Manager at Capitalmind PMS, echoed this view: 'Largecaps currently offer a better balance of earnings visibility and valuation comfort. The current environment rewards discipline and fundamentals over broad-based exposure—especially when smallcap multiples leave little room for error.'The takeaway: Smallcaps may be in vogue, but the Q4 scorecard shows that the rally isn't built on solid ground—at least not yet.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
&w=3840&q=100)

Business Standard
15 hours ago
- Business Standard
Suzlon promoters sell 1.45% stake; Lalithaa Jewellery files for IPO
Tanti Holdings and three other promoter group entities sold 1.45 per cent stake in Suzlon on Monday. They sold 198.2 million shares at ₹66 apiece to raise ₹1,309 crore. Among the buyers were Motilal Oswal Mutual Fund, ICICI Prudential Life, Goldman Sachs, and Societe Generale. Shares of Suzlon closed at ₹67, up 0.6 per cent over previous close. Lalithaa Jewellery files for ₹1,700 cr IPO Jewellery player Lalithaa Jewellery Mart has filed preliminary papers with markets regulator Sebi seeking its approval to raise ₹1,700 crore through an initial public offering (IPO). The Chennai-based company's proposed IPO is a combination of a fresh issue of shares worth ₹1,200 crore and an offer-for-sale of equities valued at ₹500 crore by M Kiran Kumar Jain, according to the draft red herring prospectus. The issue includes a reservation for a subscription by eligible employees, and a discount is being offered to such employees. According to the draft papers filed on Friday, proceeds from the fresh issue to the tune of ₹1,014.50 crore will be used for setting up new stores, and a portion would be utilised for general corporate purposes. Wipro shares worth ₹5,058 crore got traded among the promoter group entities under the block deal window on Monday. Data provided by stock exchanges showed Azim Premji Trust as the seller and Hasham Traders, Prazim Traders, and Prazim Trading & Investment as the buyers. A total of 202.3 million shares were traded at ₹250 apiece.