NFO Alert: Motilal Oswal Mutual Fund Launches Nifty Services Sector ETF

Motilal Oswal Mutual Fund has announced the launch of its Nifty Services Sector ETF-Growth under a New Fund Offer (NFO) scheduled to open and close on November 24, 2025. The ETF aims to mirror the performance of India’s expanding services sector through the Nifty Services Sector TRI. 

Key Highlights of Motilal Oswal Nifty Services Sector ETF-Growth NFO 

The Motilal Oswal Nifty Services Sector ETF-Growth is an open-ended thematic equity scheme designed to track the Nifty Services Sector Total Return Index. The fund requires a minimum investment of ₹500 and has no lock-in period or exit load. Categorised under "Very High" risk, the ETF intends to closely replicate index returns excluding expenses and subject to tracking error. 

Understanding the Nifty Services Sector Index 

This benchmark index comprises 30 service sector companies listed on the NSE. It represents firms from domains like banking, software, telecommunications, financials, IT education, shipping, media, and courier services. The index calculation is done on a free float market cap basis and is rebalanced semi-annually. It serves as a benchmark for ETFs, index funds, and structured products. 

Top Constituents and Sector Allocation 

Top-weighted companies in the index include HDFC Bank (20.64%), ICICI Bank (13.14%), and Bharti Airtel (7.66%). The ETF's sectoral tilt leans heavily towards banking, telecommunications, and IT services. The index’s fundamentals include a P/E ratio of 21.45, P/B of 3.5, and a dividend yield of 1.31% as of the latest update. 

Read More: NFO Alert: Navi Mutual Fund Launches Nifty MidSmallcap 400 Index Fund! 

Fund Management Team  

The fund is managed by Swapnil P Mayekar, Rakesh Shetty, and Dishant Mehta, each with varied experience in different segments including equity ETFs, product development, and derivative markets.  

Conclusion 

The Motilal Oswal Nifty Services Sector ETF-Growth NFO offers exposure to India's diversified services sector via a low-cost ETF route. With a single-day subscription window on November 24, 2025, the fund looks to appeal to investors seeking thematic equity exposure aligned with the broader services domain. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.