Bajaj Finserv launches consumption fund: A play on India's growing consumerism

Bajaj Finserv AMC has announced the launch of the Bajaj Finserv Consumption Fund.

In a move to capture India’s booming consumer-driven economy, Bajaj Finserv AMC has launched the Bajaj Finserv Consumption Fund. This open-ended equity scheme focuses on sectors aligned with rising consumer megatrends, offering investors a unique opportunity to tap into the country’s expanding middle class and evolving spending patterns. With investments across diverse sectors like FMCG, healthcare, and realty, the fund aims to leverage India's shifting consumption landscape for long-term wealth creation.

Key Highlights

• Focus on Consumption: The Bajaj Finserv Consumption Fund targets sectors aligned with emerging consumer trends.
• Open-Ended Equity Scheme: Benchmarked against the Nifty India Consumption TRI, the fund aims to capitalise on consumer-driven market growth.
• Flexible Market-Cap Strategy: Invests across large, mid, and Small-Cap companies that are well-positioned to benefit from the rising consumption wave.
• NFO Period: Open for subscription from November 8 to November 22, 2024, with a minimum investment of Rs 500.

Features of the fund include

• Wide Market-Cap Agility: A market-cap-agnostic approach allows flexibility to capture high-growth opportunities across large, mid and small-cap companies.
• Sectoral Diversity: The fund focuses on companies in sectors like consumer durables, non-durables, healthcare, pharmaceuticals, auto, telecom, media, and entertainment, allowing exposure to various consumption-driven industries.
• Dual Options for Investors: Offers Growth and IDCW (Income Distribution cum Capital Withdrawal) options, enabling investors to align with their financial goals.

Management Comments
Nimesh Chandan, CIO, Bajaj Finserv AMC said, “With India’s changing demographics and rising incomes, consumption sectors have become attractive at current valuations. The Bajaj Finserv Consumption Fund is ideally positioned to benefit from the growing domestic demand across multiple sectors. Our INQUBE philosophy and robust equity research process will guide us in selecting companies with potential for long-term wealth creation.”

Consumption trends driving growth
According to Bajaj Finserv AMC’s research, India’s per-capita income is projected to exceed USD 3,000 by 2025, with a burgeoning middle class anticipated to reach nearly 40 per cent of the population by 2030. Additional megatrends highlight a 2.7-fold increase in India’s e-commerce base by FY25, reinforcing the importance of consumer-centric investment themes.

Investment Details

• 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 Invest?
The Bajaj Finserv Consumption Fund is suitable for:

• Long-Term Investors: Those looking for wealth creation over the long term by investing in companies poised to benefit from India’s consumption growth.
• Diversified Portfolio Seekers: Investors seeking exposure to multiple sectors influenced by rising domestic consumption.
• Value Investors: Those interested in a market-cap-agnostic fund with opportunities across small, mid and Large-Cap stocks.

Disclaimer: The article is for informational purposes only and not investment advice.