Introduction
India's consumer market has witnessed immense growth over the years. It continues to grow and is set to witness an upward trend. This is thanks to increased income levels, an open approach to discretionary spending, and urban shifting. To capitalise on these aspects, the Bajaj Finserv Asset Management Company launched the Bajaj Finserv Consumption Fund. This New Fund Offer invests in various emerging sectors in the consumption-focused space. In this blog, learn all about this consumption fund.
Details of the Bajaj Finserv consumption fund NFO
Here are some of the critical details to note about the Bajaj Finserv Consumption Fund Offer:
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Fund Type: Open-ended equity scheme
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Open date: 8th November 2024
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Close date: 22nd November 2024
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Minimum investment amount: Rs.500
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Fund category: Thematic or sectoral
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Benchmark Index: Nifty India Consumption Total Return Index (TRI)
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Entry and exit load: Zero entry load is applicable. As for the exit load, 1% of the applicable Net Asset Value (NAV) is applicable if you redeem/switch out the units within three months from the allotment date. Alternatively, redeeming or switching out the units after three months of allotment does not attract any exit load.
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Fund manager: For equity - Nimesh Chandan and Sorbh Gupta and Siddharth Chaudhary for debt.
Key Features of Bajaj Finserv Consumption Fund
Some of the salient characteristics of the Bajaj Finserv Consumption Fund are as follows:
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A variety of consumer-facing sectors
The fund aims to capitalise on emerging sectors in the domestic consumption market. They include consumer durables, fast-moving consumer goods (FMCG), automobiles, retail, real estate, e-commerce, etc.
The fund is focused on spreading investments across small, mid-cap, and large stocks. This way, it will cover a wide market capitalisation spectrum. Such a diversified portfolio enables it to tap into a large consumption base. As a result, it can balance the relative stability of large companies with the growth trajectory of small and mid-sized companies.
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Targets future growth opportunities
This Bajaj Finserv NFO identifies future growth opportunities. It aims to benefit from the upcoming MEGATRENDS' long-term growth potential of various sectors in the market. It seeks to gain the first mover advantage and make the most of the consumption market.
MEGATRENDS to Drive the Bajaj Finserv Consumption Fund
Following a MEGATRENDS approach, the fund looks into the potential MEGATREND opportunities. Here are some of them:
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Growing consumerism and urbanisation
As more people move from rural areas to cities, there is a lifestyle shift, which naturally leads to higher spending. Such a movement also exposes them to diverse products and famous brands, which drives consumerism.
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The rapid adoption of online food delivery
As the need and dependence on convenience increases, the demand for online delivery services grows. This is especially true for food services. There is a rapid growth in the online food delivery market in India. As more people, especially unmarried and single people, seek hassle-free meal options, this market is set to flourish.
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Demographic dividend & e-commerce
Demographic dividend refers to the phenomenon of increasing the working-age population compared to dependents. Due to new employment opportunities and growing access to education, the young workforce is growing in India. This has influenced the use of the internet and subsequently, e-commerce shopping.
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Potential for higher FMCG consumption
FMCG products, as the name describes, move quickly across the consumer market. There is a regular demand for food, beverages, and personal care items. Hence, this sector shows growth potential.
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Real estate and Automobile industry
With increased urbanisation and growing infrastructure, the demand is growing in the real estate and automobile industry. With affordable loans, these aspirational purchases are set to increase.
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How to Invest in the Bajaj Finserv Consumption Fund
You can invest in this consumption fund through the Bajaj Finserv AMCs, aggregator platforms, and distributions either online or offline. You can purchase units at the face value of Rs.10 during the NFO period active from 8th November to 22nd November. After this period, the scheme will reopen in a few business days. The units will then be available at the prevailing NAV. You can start with an investment of Rs.500 through a Systematic Investment Plan (SIP) or lump sum. You can use a mutual fund SIP calculator to plan your investments.
Conclusion
With the Bajaj Finserv Consumption Fund, you get a promising opportunity to capitalise on India's thriving consumer market. Investing in this diverse-sector-focused fund lets you capture the potential of rising incomes, urbanisation, and changing consumer behaviours. Its MEGATRENDS approach provides a strategic focus on emerging opportunities in the economy. So, evaluate the fund thoroughly and make your decision today to benefit from the fund before the NFO period ends. Make sure you evaluate the fund from all angles. Evaluate it based on your risk tolerance and financial goals before committing.
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