Motilal Oswal Financial Services Fund NFO opens on Jan 27; key details here

Motilal Oswal Financial Services Fund NFO: Motilal Oswal Mutual Fund has announced the launch of the Motilal Oswal Financial Services Fund, an open-ended equity scheme that will invest in the financial services sector. The new fund offer (NFO) will open for subscription on January 27 and close on February 10, 2026. The scheme will reopen for continuous sale and repurchase on February 20, 2026.

 

According to the Scheme Information Document (SID), the scheme aims to generate long-term capital appreciation by investing in equity and equity-related instruments across market capitalisations of companies deriving a majority of their income from financial services businesses. However, the SID notes that there is no assurance that the investment objective will be achieved.

 

 

Units will be offered at a face value of ₹10 during the NFO and at NAV-based prices thereafter. The minimum application amount during the NFO and on a continuous basis is ₹500 and in multiples of ₹1 thereafter. The minimum additional purchase amount is ₹500 and in multiples of ₹1.

 

The scheme will be available under two plans, regular and direct, with each plan offering Growth and Income Distribution cum Capital Withdrawal (IDCW) options.

 

The Motilal Oswal Financial Services Fund will be benchmarked against the Nifty Financial Services Total Return Index. As per the SID, both the fund and its benchmark carry a very high-risk profile.

 

The fund will be managed by Ajay Khandelwal, Atul Mehra and Sandeep Jain as fund managers for the equity component, with Bhalchandra Shinde as associate fund manager. Rakesh Shetty will manage the debt component, while Swapnil Mayekar will manage foreign securities.

 

 

Commenting on the launch, Prateek Agrawal, MD and CEO of Motilal Oswal Asset Management Company, said the Indian financial services industry is undergoing a structural shift driven by formalisation, increased digitalisation, and a growing participation of households in capital markets. He added that despite global market volatility, India continues to display strong domestic fundamentals.

 

“The industry has moved beyond banking, with listed companies in NBFCs, housing finance, insurance, fintech and capital markets witnessing growth between 2010 and 2024. The fund’s portfolio is based on MOAMC’s QGLP (Quality, Growth, Longevity, Price) investment philosophy, supported by a risk management framework and sub-sector rotation within the BFSI space,” Agrawal said.

 

Ajay Khandelwal, fund manager at Motilal Oswal Asset Management Company, said India’s financial services sector has expanded significantly over the years. “Non-lending financial services have seen nearly a 15-fold rise in market capitalisation compared to about four-fold growth in lending businesses, highlighting diversification beyond traditional banking. BFSI contributes around 33 per cent to Nifty 50 PAT and nearly 27 per cent of India’s long-term market opportunity across the financial services spectrum,” he said.

 

He added that the fund aims to build a high-conviction portfolio of 20–25 stocks, balancing lending and non-lending businesses while aligning exposure across different stages of the financial cycle.

 

 

Should you invest in Motilal Oswal Financial Services Fund NFO?

As per the SID, the Motilal Oswal Financial Services Fund is suitable for investors seeking long-term capital appreciation and those looking to invest predominantly in equities and equity-related instruments of companies engaged in financial services businesses.

 

“Investors should consult their financial advisers if in doubt about whether the product is suitable for them,” the SID said.