A play on India's growing consumerism - Bajaj Finserv launches consumption fund
- revanth chalamala
- Nov 8, 2024
- 2 min read
To seize the opportunity presented by India's thriving consumer-driven economy, Bajaj Finserv AMC has introduced the Bajaj Finserv Consumption Fund. This equity scheme, which remains open-ended, concentrates on sectors that are in line with the growing consumer trends, providing investors with a distinctive chance to benefit from the expanding middle class and changing spending habits in the country. By investing in various sectors such as FMCG, healthcare, and real estate, the fund is designed to capitalize on India's changing consumption patterns to generate wealth over the long run.
Important Points
Emphasis on Consumption: The Bajaj Finserv Consumption Fund focuses on sectors that follow emerging consumer trends.
Equity Scheme with No Fixed Term: Compared to the Nifty India Consumption TRI, the fund is designed to take advantage of market growth driven by consumers.
Adaptable Market-Cap Approach: It invests in large, mid, and Small-Cap companies poised to benefit from increasing consumption.
New Fund Offering Period: Available for subscription from November 8 to November 22, 2024, with a minimum investment of Rs 500
Key features of the fund:
Market-Cap Flexibility: The fund's approach is not restricted by market capitalization, providing the flexibility to target high-growth opportunities in companies of all sizes.
Sectoral Variety: This fund concentrates on sectors such as consumer durables, non-durables, healthcare, pharmaceuticals, automotive, telecommunications, media, and entertainment, offering exposure to diverse consumption-driven industries.
Investment Options: Investors can choose between Growth and IDCW (Income Distribution cum Capital Withdrawal) options to better align with their financial objectives.
Management Comments
Nimesh Chandan, CIO, Bajaj Finserv AMC stated, “Given the evolving demographics and increasing incomes in India, consumption sectors are currently appealing in terms of valuations. The Bajaj Finserv Consumption Fund is strategically positioned to capitalize on the expanding domestic demand in various sectors. Our INQUBE approach and rigorous equity research methodology will assist us in identifying companies with the potential for long-term wealth generation.”
Growth fueled by changing consumption patterns
Research from Bajaj Finserv AMC suggests that India's per-capita income is expected to surpass USD 3,000 by 2025, while the growing middle class is forecasted to make up almost 40% of the population by 2030. Other significant trends indicate a 2.7-fold rise in India's e-commerce sector by FY25, underscoring the importance of investment themes focused on consumers.
Details of the Investment
NFO Period: November 8 to November 22, 2024
Benchmark: Nifty India Consumption Total Return Index (TRI)
Minimum Investment: Rs 500 for both lumpsum and SIP
Exit Load: 1 per cent if redeemed within three months of allotment
Who Should Consider Investing? The Bajaj Finserv Consumption Fund is suitable for:
Investors with Long-Term Goals: Individuals aiming for long-term wealth accumulation by investing in companies expected to benefit from the growth of consumption in India.
Those Seeking a Diversified Portfolio: Investors looking for exposure to various sectors influenced by the increasing domestic consumption.
Value-Oriented Investors: Individuals interested in a fund that is not restricted by market capitalization, offering opportunities in small, mid, and large-cap stocks.
Disclaimer: The article is for informational purposes only and not investment advice.
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