In modern times, services sector many aspects of our day to day life. From mobile / broadband to online shopping (e-commerce), credit cards and net banking, quick commerce, travel and leisure, healthcare services to media (TV, OTT) and entertainment, it is difficult to imagine modern life without the roles of the services sector. Services sector is the largest contributor to India's GDP. Services is a major (source: Press note on provisional FY 2023-24 GDP estimate, Ministry of Statistics & Programme Implementation, Government of India). India is one of the Top 10 services exporter in the world. The services sector covers a variety of industries ranging from Services as investment theme represents a vast and diversified set of investment opportunities covering sectors like Banking and Financial Services, Information Technology, Telecom, Healthcare, Transportation, Hospitality etc. Axis MF has launched a new fund offer (NFO), Axis Services Opportunities Fund, which will invest in companies that are part of the services theme. The NFO has opened for subscription on 4th July and will close on 18th July 2025. In this article we will know about the Axis Services Opportunities fund NFO
To ensure the liberalisation of investment in various industries, the Government has permitted 100 per cent foreign participation in telecommunication services including all services and infrastructure providers, through the Automatic Route. The FDI ceiling in insurance companies was also raised from 49% to 74%. Measures undertaken by the Government to boost FDI include the National Single-Window system, enhancement in the FDI ceiling through the automatic route etc. have played a significant role in facilitating investment. The Government's push to boost the digital economy, growing internet penetration, rise in smartphone adoption, financial inclusion through PM Jan Dhan Yojana, increased adoption of digital payments (UPI and JAM Trinity), shift from physical assets to financial assets, RBI's push for credit, growth in demat accounts, growth in mutual fund AUM, etc indicates growing financialization. At the same time, healthcare reforms and initiatives like Ayushman Bharat Pradhan Mantri - Jan Arogya Yojana (public health insurance scheme), ABHA Health card, e-Sanjeevani (telemedicine) etc are key steps in providing universal healthcare to vast sections of the population. Formalization of the economy (shift from unorganized to organized sectors) through reforms like GST implementation, digital India (UPI), e-invoicing can create a long runway for growth of services sector in India.
Source: MOFSL Institution Research, data as on April 2025
Source: ACEMF, Axis MF Internal Analysis, Data As on 30th April 2025. Disclaimer: Past performance may or may not be sustained in the future
Source: Word Bank, data as on May 2025, data last available for 2023
Source: Axis MF
Source: Axis MF
Financial Services: The financial sector has grown exponentially in the last decade driven by digitization and fintech boom.
IT Services: IT services provides one of the best cash conversions within the different sectors despite the various challenges.
Telecom: The telecom sector has seen an increasing base with 5G driving increased data usage.
Source: Axis MF, CLSA, India ARPU taken from TRAI “Performance indicator reports 2023-24
Healthcare: Growth drivers point to high opportunity in healthcare sector. Medical tourism is a growing sector and is estimated to quadruple by the year 2030 (see graph below). Despite impressive strides made by India in healthcare infrastructure and services, our healthcare expenditure as percentage of GDP is low compared to global peers, indicating a long runway for growth in healthcare sector.
Source: Axis MF Worldostats, World Health Organization, Bureau of Immigration (BOI)
Hospitality: Hospitality continues to get a higher wallet share
The Axis Services Opportunities Fund is a thematic fund designed to allocate actively to companies using a bottom- up approach focussing on scalability opportunities in services sector. The fund will invest across market capitalization, follow a quality focussed style and maintain high active share. The benchmark for the fund is Nifty Services Sector TRI. The fund is managed by Fund Managers Mr. Sachin Relekar, Mr. Shreyash Devalka, and Ms. Krishnaa Narayan (for foreign securities). The fund will open its subscription on 4th of July 2025.
Source: Axis MF Product leaflet
The fund is suitable for
Contact your financial advisor or mutual fund distributor to understand if the Axis Services Opportunities fund is suitable for your investment needs.
Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.
Axis Mutual Fund launched its first scheme in October 2009 Since then Axis Mutual fund has grown strongly. We attribute our success thus far to our 3 founding principles - Long term wealth creation, Outside in (Customer) view and Long term relationship. Come join our growing family of investors and give shape to your desires.