Motilal Oswal Launches Financial Services Fund: NFO Opens Jan 27

Motilal Oswal Mutual Fund has announced the launch of the Motilal Oswal Financial Services Fund, an open-ended equity scheme focused on India’s financial services sector. The fund aims to tap into long-term growth opportunities emerging from both traditional and non-traditional financial businesses.

The new fund offer will open for subscription on January 27 and will remain open until February 10. Investors can participate during this period at the applicable NFO price, after which the scheme will reopen for continuous purchase and redemption.

Investment Objective and Sector Focus

The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of companies operating across the financial services space. This includes banks, insurance companies, capital market intermediaries, asset managers, exchanges, wealth management platforms, and fintech-linked financial services businesses.

According to Motilal Oswal Asset Management Company, the financial services sector has evolved significantly over the past decade. While lending businesses remain important, non-lending segments such as insurance, asset management, exchanges, and digital financial platforms have seen increasing participation and scale.

Fund Strategy and Portfolio Approach

The fund will follow Motilal Oswal AMC’s QGLP investment framework, which focuses on Quality, Growth, Longevity, and Price. This framework aims to identify businesses with strong fundamentals, sustainable growth prospects, long-term relevance, and reasonable valuations.

The portfolio strategy involves building a relatively concentrated basket of around 20 to 25 stocks. The allocation will balance exposure between lending and non-lending financial businesses, based on market conditions and the fund manager’s assessment.

Fund Management Team

The Motilal Oswal Financial Services Fund will be managed by a team of experienced professionals, including Ajay Khandelwal, Atul Mehra, Sandeep Jain, Bhalchandra Shinde, Rakesh Shetty, and Swapnil Mayekar. The diversified management team is expected to bring sector-specific expertise and risk oversight to the scheme.

Also Read: AMFI Proposes Mutual Fund Linked Retirement Schemes with Exemption Tax Treatment!

Conclusion

The launch of the Motilal Oswal Financial Services Fund offers investors a focused opportunity to participate in the expanding financial services ecosystem in India. With a sector-specific approach, a disciplined investment framework, and an experienced fund management team, the scheme is positioned for investors seeking long-term exposure to financial services-led growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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