Axis Mutual Fund has unveiled its latest thematic offering — the Axis Services Opportunities Fund, an open-ended equity scheme designed to harness the long-term growth potential of India’s service sector. The New Fund Offer (NFO) is currently open and will close on July 18, 2025.

The fund will invest at least 80% of its assets in equities of companies that are part of the NIFTY Services Sector Index, spanning 48 service-oriented industries — from financial services, IT, and telecom to healthcare, fintech, transport, e-commerce, entertainment, and more.

Managed by a seasoned trio — Shreyash Devalkar, Sachin Relekar, and Krishnaa Narayan (for overseas investments) — the fund adopts a bottom-up stock selection approach, with a strong focus on ROCE, quality earnings, and scalable business models. It maintains a high active share and aims to deliver risk-adjusted returns by targeting capital-efficient businesses with sustainable competitive advantages.

Positioned against the backdrop of a services-led economic shift, the fund complements Axis AMC’s existing thematic range, including the Axis Consumption and Axis India Manufacturing funds.

With a minimum investment of just ₹100, this fund offers a compelling route for investors to participate in India’s evolving growth narrative through the services sector.

Axis Mutual Fund has launched the Axis Services Opportunities Fund, a thematic equity scheme targeting the structural transformation of India’s economy towards a services-led growth model. The New Fund Offer (NFO) is open for subscription until July 18, 2025.

The fund’s objective is to generate long-term capital appreciation by investing in businesses that derive their core revenues from service-based models. This includes sectors such as banking, IT, telecom, healthcare, fintech, transport, e-commerce, and more — aligning with the NIFTY Services Sector TRI, the fund’s benchmark.

According to Axis AMC, India’s services sector now contributes over 53% of FY24 profits in the NSE 500 PAT pool, supported by robust ROE and ROCE metrics, yet many service segments continue to offer growth at reasonable valuations. The fund will adopt a bottom-up, actively managed strategy, focusing on businesses with consistent earnings, capital efficiency, and scale potential.

Led by Shreyash Devalkar (Head of Equity), Sachin Relekar (Senior Fund Manager), and Krishnaa Narayan (for global exposure), the fund is structured to maintain high active share, offering investors exposure to differentiated opportunities within India's services sector.

This fund complements Axis AMC’s thematic offerings like the Axis Consumption Fund and Axis India Manufacturing Fund, giving investors an opportunity to align portfolios with the three structural pillars of India’s long-term growth — consumption, manufacturing, and services.