Motilal Oswal Infrastructure Fund NFO Review: Good to Invest?

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Did you hear about the newly launched Motilal Oswal Infrastructure Fund under the equity thematic category, promoting its motto, "Think Equity, think Motilal Oswal?" Yes, it started its subscription on 23rd April and will close on 7th May 2025, so why wait?

This new NFO presents an amazing opportunity for you to make high returns as the government is set to spend heavily amounting to Rs.11.21 lakh crores to the infrastructure sector on various policies like the National Infrastructure Pipeline (NIP), PM Gati Shakti National Master Plan (NMP), India Infrastructure Project Development (IIPDF) and many more.

On that note, let's see what this latest Motilal Oswal NFO is all about and whether it could be the best NFO 2025 in the infra sector for you or not.

Let's start by covering the key details of this new fund offer.

Motilal Oswal Infrastructure Fund NFO: Basic Details

Here is the key information about the newly launched Motilal Oswal NFO 2025:

Must Know: Why Investing in NFO 2025 is a good investment?

What is an Infrastructure Fund?

An Infrastructure Fund belongs to the equity thematic fund category that invests in either private or publicly listed companies that are engaged in the infrastructure sector, such as building roads, railways, airports etc.

Likewise, the Infrastructure Mutual Funds invest in top companies like Tata Projects and Adani Infrastructure- King of Ports, which handles government projects like roads, bridges, airports, power plants and water systems that offer an opportunity to benefit from the growth and long term stability of essential public assets which are in consistent demand.  

Investing Strategy of Motilal Oswal Mutual Fund

Motilal Oswal's investing process builds Hi-Quality and Hi-Growth portfolios by using a unique investment model known as "QGLP" it stands for:

   Q: Quality

    G: Growth

        L: Longevity

P: Price

This way, it focuses on the major 4 parameters that will make this newly launched Motilal Oswal Mutual Fund NFO a good investment in 2025.

Is it Good to Invest in Infrastructure Funds NFO 2025?

Infrastructure acts as the backbone of an economy, connecting people, businesses and markets like a network.

Similarly, the following points put up a strong front that makes infrastructure fund NFO a good investment in 2025:

Strong GDP Growth

India's GDP growth is projected to reach over 7%, which will nearly double to a 61% rise in disposable income by 2047 from 31% in 2021. The infrastructure sector is developing into a fast-growing major economy globally, which is important to scale the expansion in logistics, power or connectivity.

Here is a graph showing the ongoing growth of metro projects in India:

Fast Manufacturing Growth

The shift of global manufacturing to India is visible as it ranks 5th amongst our neighbouring countries with 30.8% growth recorded in 2021 and still growing steadily, will eventually increase the scope for construction.

See the graph below for share in global manufacturing value and trends in India's construction:

Infrastructure Expansion on the Rise

India's infrastructure industry is growing quickly, with big investments going into areas like energy, transportation and utilities. For example, the energy sector is expected to grow from INR 5,121 billion in FY23 to INR 8,288 billion by FY28.

This kind of growth makes infrastructure funds a good option for long-term investment, as they have the potential to increase in value over time.

Powered by Government Support

The Indian government is putting a lot of effort into developing infrastructure; in the Union Budget 2025-26, the government has budgeted Rs.11.21 crores for the infrastructure sector, which is a big jump from INR 57 lakh crores in the past.

See the allocation by percentage in the charts below:

This focus on improving roads, railways, energy and cities makes investing in infrastructure funds even more attractive, as it ensures ongoing support and investment in the sector for the long term.

Pro Tip: Plan easily with SIP Calculator as your all-time finance buddy.

Motilal Oswal Infrastructure Fund NFO: Risk Management

The following points tells you about the efficient ways through which the new Motilal Oswal Infrastructure Fund NFO will manage risk for sustainability:

1. Stock Weightage & Stock Sizing: This New Fund Offer will set minimum and maximum exposure limits in its portfolio to keep the risk at bay.
2. Sector Sizing: It will set a limit on sector deviations relative to a benchmark.
3. Diversification Strategy: The portfolio size is capped up to below or up to 35 stocks only to reduce risk.
4. Profit Taking/ Stop Loss Framework: This latest NFO will conduct a proprietary framework for measuring triggers.
5. Stringent Liquidity Framework: This Motilal Oswal NFO will ensure efficient management and the ability to take necessary actions whenever needed.

Investments in Mutual Funds are the easiest way to knock down financial troubles.

Who Should Invest in Infrastructure Fund NFO by MOFSL?

This new NFO from the equity thematic infrastructure sector is best suited for the following types of investors:

1. Believers in India's Growth
   

   If you believe in India's transformation story, the Motilal Oswal Infrastructure Fund NFO gives exposure to developments in areas such as metro cities, green highways and smart grids, which are part of India's ongoing infrastructure evolution.

2. Seeking Infrastructure Exposure
   

   This newly launched NFO allocates capital to sectors such as transport, energy and connectivity, along with national infrastructure development.

3. IT-heavy Portfolios
   

   If your portfolio leans heavily on IT, banking or the consumption sector, this could be the best NFO 2025 in its category to bring a bold thematic edge with exposure to sectors often underrepresented but critical.

4. Long-term Growth Seekers
   

   Infrastructure takes time to build but when it does, it transforms economies. If you are someone who wants to take advantage of the long-term compounding potential, then this new NFO is the best fit for your portfolio.

Motilal Oswal Infrastructure Fund NFO: Sub-Sectors of Infrastructure

This new NFO from the Motilal Oswal Mutual Fund house offers a wide range of investment options across various sectors:

Smart Way to Success: How to Make 1 Crore from SIP of Rupee 5000?

To Conclude Motilal Oswal Infrastructure Fund Review

In short, this new NFO under the infrastructure theme acts as the backbone of the Indian economy with the opportunity to invest in the core physical and digital assets like roads, bridges, power systems and communication networks, driving the economic expansion and fostering industry-wise innovation.

As for now, you can make lumpsum investment in the Motilal Oswal Infrastructure Fund NFO, but for compounding returns, investing via SIP (Systematic investment plan) is an all-time good strategy.