Motilal Oswal launches equity fund tracking India's infrastructure growth

Scheme will invest in roads, railways, energy and other projects, provide investors 'long-term value'

Motilal Oswal Mutual Fund has launched a new thematic equity scheme tracking India’s infrastructure sector. Motilal Oswal Infrastructure Fund opened for subscription on Wednesday and will close on May 7, 2025.

 

It will invest in companies “directly or indirectly involved” in infrastructure development. “India’s infrastructure growth is gaining momentum,” said Prateek Agrawal, managing director and chief executive officer of Motilal Oswal Asset Management Company (MOAMC), in a statement. “The fund provides investors an opportunity to participate directly in this transformation across infrastructure sectors, aiming for long-term value.”

 

The fund will invest in roads, railways, energy, and urban, social and digital infrastructure. It will benefit from global trends such as supply-chain rebalancing, and domestic policies like Make in India manufacturing programme and production linked incentive scheme.

 

 

Fund highlights:

 

Type: Open-ended equity scheme based on infrastructure theme

 

NFO period: April 23 to May 7, 2025

 

Benchmark: Nifty Infrastructure Total Return Index

 

Fund Managers: Ajay Khandelwal, Atul Mehra, Shinde (equity); Rakesh Shetty (debt); Sunil Sawant (overseas)

 

Options available: Growth and IDCW (Payout & Reinvestment)

 

Objective: Long-term capital appreciation through equity investments in infrastructure-linked companies

 

The infrastructure push is supported by increased government allocation, which is expected to rise by 7.4 per cent in FY26, according to MOAMC. Capital expenditure will account for 22.1 per cent of total government spending, according to the company’s research. The infrastructure outlay for FY20-25 was around Rs 111 trillion, up from Rs 57 trillion in FY13–19.

 

“India is on the cusp of a major infrastructure transformation — from improved roads and railways to power, ports, and digital connectivity,” said Shinde. “This fund aims to provide retail investors access to companies contributing to this transformation, with the goal of delivering steady value over time.”  ALSO READ: Kotak Bank, Axis cut fixed deposit rates again, offer up to 7.65 % interest

 

According to MOAMC, while the scheme offers a strong long-term opportunity, investors should also consider the risks involved in sector-specific investments. All mutual fund investments are subject to market risks, and potential investors are advised to read the scheme-related documents carefully.