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Motilal Oswal Mutual Fund has announced the launch of the Motilal Oswal Financial Services Fund, an open-ended equity scheme investing in Financial Services Sector. The scheme aims to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of companies engaged in financial services businesses. The New Fund Offer (NFO) will be open for subscription from today January 27th to February 10th, 2026.
Financial services represent a structurally important and expanding pillar of India’s economy, encompassing banks, insurance, capital markets, and the fintech ecosystems. Over the last decade, the sector has evolved beyond traditional lending, with non-lending businesses witnessing increased participation across exchanges, asset management companies, insurance, fintech platforms, and wealth management players. Historically, India’s financial services sector has shown broad-based expansion over time, such as bank deposits and advances, NBFC AUM, mutual fund AUM, insurance premiums, and equity market activity, reflecting sustained long-term growth across the country’s financial ecosystem.
Commenting on the launch, Prateek Agrawal, MD & CEO of Motilal Oswal Asset Management Company said,“The financial services industry in India is currently undergoing a major shift due to the formalisation of the industry, increased digitalisation, and the growing number of households participating in the capital markets. At a time of global market volatility, India remains a country with strong domestic fundamentals. The industry has moved beyond banking, with the listed companies in the NBFCs, housing finance, insurance, fintech, and capital markets experiencing growth between 2010 and 2024. The portfolio of the fund is based on the MOAMC’s QGLP (Quality, Growth, Longevity, Price) investment philosophy, which is aided by a risk management framework and sub-sector rotation in the BFSI space.”
Ajay Khandelwal, Fund Manager at Motilal Oswal Asset Management Company said, “India’s financial services sector has expanded meaningfully over the years, non-lending financial services have seen nearly 15x rise in market capitalisation compared to about 4x growth in lending businesses, highlighting diversification beyond traditional banking. Today, BFSI contributes approximately 33% to Nifty 50 PAT and nearly 27% of India’s total market long term opportunity across the financial services spectrum. Our approach is to build a high-conviction portfolio across *20–25 stocks, balancing lending and non-lending businesses, and aligning exposure across different stages of the financial cycle.”