New mutual fund offer targets India’s growing services economy

The NFO opened on July 14 and will remain open for subscription until July 28. Units are available at a face value of ₹10 during the offer period.

The scheme will invest predominantly in service-oriented businesses across sectors such as banking and financial services (BFSI), information technology (IT), IT-enabled services (ITeS), healthcare, telecommunications, retail, e-commerce and digital infrastructure.

According to the fund house, the investment universe comprises around 195 service-sector companies from the Nifty 500 Index, spanning large-, mid- and small-cap stocks.

The fund will follow a thematic investment strategy by identifying companies with scalable business models, earnings growth potential and long-term structural opportunities within the services economy.

The launch comes as asset managers continue to introduce thematic and sector-focused schemes aimed at tapping specific segments of the economy. India’s services sector contributes the largest share to the country’s Gross Value Added (GVA) and has been supported by trends such as digitalisation, rising financial inclusion, healthcare demand and growing consumer spending.

The fund house said the scheme is intended for investors with a long-term investment horizon of more than three years, given the concentrated nature of thematic investing.

Unlike diversified equity funds, thematic funds invest in a specific theme or segment of the economy and may carry higher concentration risk if the chosen theme underperforms the broader market. Investors are generally advised to assess such funds in line with their risk appetite, portfolio allocation and investment objectives.

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