Services sector funds: Hold in satellite portfolio if risk appetite permits

Industry is the largest segment of India's economy, offers investment opportunities in multiple high-growth areas

Thematic and sectoral funds are popular with risk-tolerant investors seeking market-beating returns. While manufacturing has gained prominence due to the government’s push, the services sector is also gaining ground and can be rewarding to investors. Motilal Oswal Asset Management Company (AMC) recently launched the Motilal Oswal Services Fund to capture this potential.

 

“The service sector encompasses a range of industries benefiting from rising incomes, urbanisation and digital adoption. With structural tailwinds and improving export competitiveness, there is long-term potential across this sector,” says Bhalachandra Shinde, associate fund manager, Motilal Oswal AMC.