Prateek Agarwal, MD & CEO of Motilal Oswal Asset Management Company, has announced the launch of a new BFSI fund aimed at capitalizing on the evolving financial services landscape in India. This fund is designed to focus on capital market-linked businesses such as asset management companies, brokers, and exchanges, as traditional banks begin to deliver near index-like earnings growth. Agarwal believes that the current phase represents a significant shift towards these capital market ecosystems, which will be a key differentiator for the fund.

The fund's strategy aligns with recent positive developments in India's trade relations, particularly the new agreements with the United States and the European Union. These deals are expected to bolster India's manufacturing sector and improve its competitive stance in the global market. Agarwal highlighted that India's advantages in labor costs and a skilled workforce make it an attractive destination for manufacturing and investment.

As investor sentiment begins to shift positively, there is potential for a reversal of capital outflows, which had previously exceeded ₹1.6 lakh crore (approximately $192 billion USD) in 2025. The BFSI fund aims to capture this momentum, with a portfolio expected to consist of around 25 stocks, each holding approximately 3% to 5% of the total investment. Overall, the fund reflects a broader optimism about India's economic prospects and the structural changes occurring within its financial services sector.