Motilal Oswal Financial Services Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Motilal Oswal Financial Services Fund Direct Growth Plan currently has a NAV of ₹10.6237 as of 16 Sep 2026, with an AUM of ₹216 Cr. Its 1-year, 3-year and 5-year returns are 0%, 0% and 0%, and it is tagged as High Risk. Our view is that this is a focused equity fund for investors who can accept sharp swings in the financials theme, but the absence of a meaningful return history means the portfolio structure matters more than any long-term track record at this stage.

The fund is young, launched on 16 Feb 2026, and its current holdings show a heavy tilt toward banks and finance names. That can create strong sensitivity to credit, rate and market-cycle shifts. For now, it looks more suitable for investors who want a sector-focused allocation and are comfortable with early-stage volatility rather than those looking for a proven full-cycle record.

Quick facts

Particular	Details
NAV	₹10.6237 as of 16 Sep 2026
AUM	₹216 Cr
Expense Ratio	0.0%
Launch Date	16 Feb 2026
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	1% on or before 90D, Nil after 90D
Fund Managers	Ajay Khandelwal, Atul Mehra, Sandeep Jain, Bhalchandra Shinde

The fund is managed by Ajay Khandelwal, Atul Mehra, Sandeep Jain and Bhalchandra Shinde.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-1.96%	-4.41%
3M	3.64%	-3.6%
1Y	Data not available	Data not available
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The short-term pattern is mixed but not weak. Over one month, the fund declined less than the benchmark, which suggests relative resilience even though the absolute move was negative. Over three months, it moved into positive territory while the benchmark stayed negative, so the fund has recently held up better than the index.

That said, the fund is still very early in its life, so the short-term pattern should not be mistaken for a full operating record. The available movement shows alternating pressure and recovery rather than a smooth trend, which is normal for a new sector-focused equity strategy. Because the fund has not built a 1-year, 3-year or 5-year history yet, investors cannot use longer-cycle compounding as a guide at this stage.

Against the Nifty 50, the fund is ahead on the periods where comparison is available. Our read is that the early behaviour is more constructive than the benchmark’s over the same windows, but the absence of longer-horizon data still leaves the durability of that edge untested. For investors, the main takeaway is that the fund has started with better short-run behaviour than the index, but there is not yet enough history to judge consistency across market phases.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD Motilal Oswal Financial Services?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Motilal Oswal Financial Services Fund Direct Growth Plan	Data not available	Data not available	Data not available
Canara Rob Banking & Financial Services Fund Direct Growth Plan	Data not available	Data not available	Data not available
Edelweiss Financial Services Fund Direct Growth Plan	Data not available	Data not available	Data not available
Bank of India Banking & Financial Services Fund Direct Growth Plan	Data not available	Data not available	Data not available
Bajaj Finserv Banking and Financial Services Fund Direct Growth Plan	Data not available	Data not available	Data not available
Motilal Oswal Financial Services Fund Direct Growth Plan	Data not available	Data not available	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

On the peer set that is visible here, the current fund does not yet have a usable 1-year, 3-year or 5-year record, so the comparison is mostly about the absence of history rather than relative returns. Because the other funds in this group also show unavailable longer-horizon figures, there is no clear long-term separation to draw from the table.

What we can say is that the fund’s recent short-run behaviour has been steadier than the benchmark, while the peer table does not yet provide a long-horizon check. That makes the short-term view somewhat encouraging, but not enough to conclude that the strategy has already established a durable edge over similar funds.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
State Bank of India	Bank	7%
ICICI Bank Limited	Bank	6.71%
HDFC Bank Limited	Bank	6.38%
Multi Commodity Exchange of India Limited	Finance	5.73%
Bajaj Finance Ltd	Finance	4.99%
Cholamandalam Investment and Finance Company Limited	Finance	4.24%
Shriram Finance Limited	Finance	3.91%
Indusind Bank Limited	Bank	3.9%
One 97 Communications Limited	IT	3.84%
PNB Housing Finance Limited	Finance	3.83%

The largest holding, State Bank of India, carries a 7% weight, so it is clearly meaningful but not overwhelming on its own. The next two positions are also large, both above 6%, which means the fund begins with a strong core exposure to major banking names before spreading into finance and a smaller IT allocation.

The drop from the largest holding to the tenth is gradual rather than abrupt. That suggests the portfolio is not built around a single dominant bet, but around several sizeable positions that could each matter to performance. Because the top 10 holdings account for approximately 50.53% of the portfolio, the displayed sleeve is moderately concentrated even though the fund holds 31 positions in total.

That mix may give the fund meaningful exposure to financials across banks, lending and market infrastructure names, while still leaving room for smaller positions further down the book. For investors, the key point is that the portfolio is focused enough for the financials theme to shape returns, yet broad enough within that theme to reduce dependence on one stock alone.

To see all holdings, visit the Motilal Oswal Financial Services Fund Direct Growth Plan page

Source data date: as of 16 Sep 2026

Who should invest

This fund is better suited to investors who can tolerate High Risk and are comfortable with a financials-heavy equity portfolio. The early return pattern is still limited, so the main appeal is the theme exposure rather than a long record of compounding. Investors with a longer horizon may be able to absorb the short-term swings that come with this kind of concentration.

The trade-off is clear: the portfolio can benefit if financial-sector names stay constructive, but it may also move sharply if that theme weakens. Compared with the benchmark, the recent behaviour has been better in the periods available, yet the absence of longer history means there is still uncertainty around how it behaves across a full market cycle.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load

1% if units are sold on or before 90 days; no exit load after the holding period.

Source data date: as of 16 Sep 2026

Frequently asked questions

What is the current NAV of Motilal Oswal Financial Services Fund Direct Growth Plan?

The current NAV is ₹10.6237 as of 16 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

Its 1-year, 3-year and 5-year returns are Data not available, Data not available and Data not available.

How has the fund done against the benchmark recently?

Over 1 month and 3 months, the fund has done better than the Nifty 50 benchmark in the periods available. The benchmark remains negative in both windows while the fund is less weak over 1 month and positive over 3 months.

How does the fund compare with the peer funds shown here?

The peer table does not yet provide usable 1-year, 3-year or 5-year return histories for this fund or the listed peers. That means the comparison is mainly about the lack of long-horizon data rather than a clear return gap.

Is there a minimum SIP for this fund?

Yes, the minimum SIP amount is ₹500.

Who manages the fund and what is its exit load?

The fund is managed by Ajay Khandelwal, Atul Mehra, Sandeep Jain and Bhalchandra Shinde. The exit load is 1% if units are sold on or before 90 days, and there is no exit load after the holding period.

Bottom line

Motilal Oswal Financial Services Fund Direct Growth Plan has started with better short-term behaviour than the benchmark, but it still lacks a meaningful long-term return record. The portfolio is concentrated in financials, led by large bank and finance holdings, which makes the fund highly theme-sensitive. Compared with the peer set shown here, there is no long-horizon return data to separate the funds yet. This is a fit for investors who want a focused financials exposure and can tolerate High Risk while waiting for a longer track record to develop.

Published on 17 September 2026 at 2:24 PM IST

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RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.