Bajaj Finserv AMC announced the launch of a thematic equity fund namely the Bajaj Finserv Consumption Fund. It aims to capitalize on growth opportunities in sectors such as FMCG, automobiles, consumer durables, healthcare, telecom, and realty, reflecting India's rapid consumption growth driven by rising income levels and urbanization. The scheme will be benchmarked against the Nifty India Consumption Total Return Index (TRI) which reflects the performance of a diversified portfolio of companies representing domestic consumption.
NFO Details
The NFO of the fund will run from November 8 to November 22, 2024, and will invest in sectors aligned with emerging consumption megatrends. The minimum investment for lumpsum is Rs 500, and the fund provides growth and IDCW options, with a 1 per cent exit load applicable if you exit within three months of investment.
Investment Philosophy
The fund will focus on companies positioned to benefit from the emerging consumer boom by identifying potential growth stories. It will follow a market-cap-agnostic approach, offering the flexibility to invest across various market capitalizations. A recent study by Bajaj Finserv AMC projects India’s per-capita income will exceed USD 3,000 by 2025, and a burgeoning middle class is expected to drive this consumption boom. Additionally, the e-commerce customer base is predicted to grow 2.7 times by FY25.
Ganesh Mohan, CEO, Bajaj Finserv AMC says, “India’s consumption landscape is dramatically shifting due to increased income levels, a surge in urbanization, and a transition from basic to discretionary spending. Consumption as a theme is favourable for investment now as the fundamentals are stronger as compared to the broader markets."
"With growth in sectors like FMCG, food services and quick commerce, realty and auto, which are expected to witness significant expansion in the coming years, we firmly believe that this fund will be an asset to our investors’ portfolios in the long run,” he added.
Nimesh Chandan, Chief Investment Officer, Bajaj Finserv AMC adds “ The consumer sectors have come to attractive valuations compared to their own historical valuation as well as premium to broad markets.”
