Motilal Oswal Financial Services Fund Analyzed

Key Points

• Focus: Investing in financial services companies in India.
• Launch: January 27, 2026, closing February 10, 2026.
• Minimum Investment: ₹500 (NFO) or ₹500 (ongoing).
• Benchmark: Nifty Financial Services Total Return Index.
• Management: Experienced team with a diversified strategy.
• Risk: High risk profile, suitable for long-term investors.

The Motilal Oswal Mutual Fund has introduced the Motilal Oswal Financial Services Fund, a new investment opportunity. This open-ended fund will concentrate its investments in companies within the financial services sector of India. The initial offer period (NFO) will begin on January 27, 2026, and will conclude on February 10, 2026, allowing investors a window to participate.

Following the initial offer, the fund will continue to accept subscriptions starting February 20, 2026. The Scheme Information Document (SID) outlines the fund’s goal: to help investors grow their money over time by putting their money into stocks and related investments within the financial services industry. It’s important to note that achieving this goal isn’t guaranteed.

During the NFO, investors can buy units for ₹10 each. After that, the price will be based on the fund’s value (Net Asset Value – NAV). You need a minimum of ₹500 to start, and you can add more in increments of ₹1. There are two different ways to invest – one that simply grows your money (Regular Plan) and one that pays out some of the profits as income (Direct Plan).

The fund will be compared to the Nifty Financial Services Total Return Index, which means it’s trying to perform similarly. Both the fund and the index are considered risky investments. The fund is managed by a team of experts, including Ajay Khandelwal and Atul Mehra, who will oversee the investments. They’ll also have help from Swapnil Mayekar and Rakesh Shetty.

Prateek Agrawal, MD and CEO of Motilal Oswal Asset Management Company, believes India’s financial services industry is changing. He says more people are getting involved in investing, and the industry is becoming more organized. Despite worries about global markets, India’s economy is still doing well.

The fund’s strategy is based on what’s called the “QGLP” approach – looking for good quality companies that are growing, have a long-term outlook, and offer good value. The team plans to pick 20 to 25 stocks, balancing companies that make loans and those that don’t, and adjusting their investments to fit different stages of the economy.

Ajay Khandelwal, the fund manager, highlighted that non-lending financial services have grown much faster than traditional lending businesses. This shows that the industry is expanding beyond just banks. The financial services sector is a big part of the stock market – about 33% of the top companies and nearly 27% of the overall opportunities in India’s financial world.

Investors should always speak to a financial advisor before investing, as stated in the SID. It’s a good idea to understand your own financial goals and risk tolerance.

“Invest wisely, and your future will thank you.”

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