Short Description: Motilal Oswal MF launches a new Financial Services Fund, targeting India’s BFSI growth. Is this your gateway to a booming sector? Read the full story.
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Motilal Oswal Mutual Fund has announced the launch of its Motilal Oswal Financial Services Fund, an open-ended equity scheme designed to capitalize on the dynamic growth within India’s financial services sector. This specialized fund aims to offer investors targeted exposure to a range of businesses beyond traditional banking, including NBFCs, insurance, fintech, and capital markets companies. According to Prateek Agrawal, MD & CEO of Motilal Oswal MF, the launch comes at a pivotal time of formalization, digitalization, and increasing domestic participation in capital markets, positioning the fund to leverage India’s strong economic fundamentals.
The fund’s investment strategy is anchored in the asset management company’s proprietary QGLP (Quality, Growth, Longevity, Price) philosophy. This approach will be guided by an active sub-sector rotation within the broader BFSI space to navigate different stages of the financial cycle. Fund Manager Ajay Khandelwal highlighted the significant expansion of non-lending financial services, which have seen market capitalization grow nearly 15 times since 2010, far outpacing traditional lending businesses. The fund plans to build a high-conviction portfolio of 20-25 stocks, balancing exposure between lending and the high-growth non-lending segments of the industry.
For investors looking to diversify their portfolio with thematic exposure, this new mutual fund offers a structured entry point into one of India’s most critical economic engines. The sector currently contributes approximately 33% to the Nifty 50’s profit after tax, underscoring its substantial market weight and long-term opportunity. The fund will be managed by a team of seasoned professionals, including dedicated managers for equity, debt, and foreign securities components, aiming to provide a comprehensive and risk-managed approach to investing in the financial services sector.
Short Summary: The Motilal Oswal Financial Services Fund provides a focused investment avenue into India’s rapidly evolving BFSI sector, combining lending and high-growth non-lending businesses. Managed by an expert team using a disciplined QGLP philosophy, this mutual fund aims to harness the sector’s formalization, digitalization, and expanding market participation for potential long-term growth.
