The country's biggest mutual fund SBI Mutual Fund has launches the SBI Nifty India Consumption Index Fund. The new fund offer (NFO) akin to the IPO offer will be launched for public subscription on October 16.

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An opportunity to invest in Nifty India Consumption index, is designed to reflect the behaviour and performance of a diversified portfolio of companies representing the domestic consumption sector such as Consumer Non-Durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels, Media & Entertainment, etc. and where more than 50 per cent of company’s revenue comes from domestic markets (other than export income). Companies should form part of Nifty 500 at the time of review, said the company in a release.

The Nifty India Consumption Index comprises of 30 companies listed on the National Stock Exchange (NSE).

D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said: “Domestic consumption has been India's primary economic growth engine, driving the nation to the next stage of its development. With rising incomes, spending on essential and discretionary items will boost industries like consumer durables, automobiles, healthcare, and retail. India's large, youthful population and increasing income levels provide a solid foundation for long-term growth in consumption driven sectors. This presents significant opportunities for businesses targeting India’s expanding middle class and affluent segments. The SBI Nifty India Consumption Index Fund offers investors a strong opportunity to benefit from this critical driver of India’s economic growth.”

SBI Nifty India Consumption Index Fund miniumum investment

The minimum application amount required is of Rs. 5,000 and in multiples of Re. 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP (Systematic Investment Plan).

Subscription period:

October 16-October 25

 

Scheme objective

The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.

Asset alllocation strategy

The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty India Consumption Index and up to 5% in Government securities (like G-Secs, SDLs, treasury bills and any other like instruments as specified by the RBI from time to time), including triparty repo and units of liquid mutual fund.

Who should invest in this SBI Fund?

The SBI Nifty India Consumption Index Fund offers investors the opportunity to invest in a diversified portfolio of companies within the domestic consumption sector, making it a solid option for those looking to benefit from India’s consumption story.