Introducing Bajaj Finserv Consumption Fund: Invest in India’s Consumer Boom
Invest in Bajaj Finserv Consumption Fund to capture India’s growing consumer sectors, from FMCG to e-commerce. Diversified, growth-focused, and accessible.
Seeking to capture the potential of India’s rapidly growing consumption sector, Bajaj Finserv Asset Management Ltd has launched the Bajaj Finserv Consumption Fund. The New Fund Offer period, when the scheme opens for subscription for the first time, began on November 8 and will be on till November 22, 2024.
This is an open-ended equity scheme that follows the consumption theme, investing in companies and sectors that are likely to benefit directly or indirectly from domestic consumption-led demand.
The fund follows a megatrends approach, seeking to capitalise on emerging trends and unique growth opportunities in consumption-related sectors. This article tells you more about the Bajaj Finserv Consumption Fund and what makes it a compelling investment opportunity.
Why invest in consumption theme
India's consumer base is undergoing a remarkable transformation, driven by several key factors that have reshaped how people buy and consume goods and services. Rising incomes and an expanding middle class are at the heart of this change, making it possible for more Indians to upgrade their lifestyles and spend on discretionary products.
The country’s rural economy is also undergoing a significant shift, with increased access to infrastructure, finance, and technology. Smartphones have become a household essential, enabling even rural consumers to shop online and access services that were previously limited to urban centres. With the rise of e-commerce and on-demand delivery services, consumer habits are changing at a never-before-seen pace.
This presents an immense investment opportunity in sectors such as fast-moving consumer goods, consumer durables, and real estate. Even consumer discretionary items – such as fashion, travel and luxury experiences – are seeing an increased demand in favourable economic conditions. Meanwhile, consumer staples provide a defensive investment avenue to mitigate downside risk.
Key sectors
The Bajaj Finserv Consumption Fund focuses on a variety of consumer-facing sectors within the Nifty India Consumption Index. These include:
- Fast-moving consumer goods (FMCG): With rising consumerism, the demand for FMCG products is expected to increase. More consumers now prefer quality and convenience, opting for trusted brands and premium products.
- Consumer durables: From smartphones to home appliances, Indian consumers are investing in durable goods that offer quality and value, showing a shift towards higher-end products.
- E-commerce and retail: As online shopping becomes the norm, e-commerce and modern retail channels are booming, driven by consumer convenience and a younger demographic comfortable with digital purchases. The increasing rural penetration of digital technology is set to further boost these sectors.
- Automobiles: Rising incomes are fostering a preference for premium vehicles, while urbanisation and a younger workforce mean more individuals are seeking personal mobility options.
- Real estate: Housing demand is driven by urban migration and the increasing trend of nuclear families.
Megatrends driving Bajaj Finserv Consumption Fund
The Bajaj Finserv Consumption Fund follows a megatrends-based investing approach. Megatrends are around long-term changes that shape societies and economies. Identifying emerging trends whose potential has not yet been realised will be a key focus. Investing in these trends at the ground level can result in significant growth potential in the long term. The fund will focus on the following megatrends:
- Demographic dividend
- Rising consumerism and urbanisation
- Scope for increased FMCG consumption
- E-commerce and online food delivery
- Real estate
- Automobiles
Key features of Bajaj Finserv Consumption Fund
Here are some of the additional features of the fund:
- True to label: The fund is committed to staying true to its consumption theme, focusing on companies that are likely to benefit directly or indirectly from domestic consumption.
- Market cap agnostic: The fund will invest across large, mid, and small-cap stocks, creating a diversified portfolio that taps into opportunities across the consumption landscape and balances the relative stability of established large cap companies with the growth potential of smaller firms.
- Targeting future growth opportunities: The Bajaj Finserv Consumption Fund is forward-looking and will invest in sectors that may benefit from emerging megatrends and offer long-term growth potential.
How to invest in Bajaj Finserv Consumption Fund
You can invest in the Bajaj Finserv Consumption Fund both online and offline. You can invest directly through Bajaj Finserv Asset Management Ltd or through a registered distributor, Registrar and Transfer Agent, or aggregators.
During the NFO period (November 8 – November 22, 2024), units will be offered at a face value of Rs. 10. After the NFO period ends, the scheme will reopen after a few business days. Units will then be available at the prevailing Net Asset Value.
Investments start at Rs. 500 for lumpsum as well as Systematic Investment Plan (SIP). You can use tools such as a lumpsum calculator and SIP calculator online to help plan your investments.
To find out more or to invest in the Bajaj Finserv Consumption Fund, visit www.bajajamc.com.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: This article is sponsored content curated by HT Syndication. The inputs and details accounted for in the article do not necessarily reflect those of HT, and HT does not endorse or assume any responsibility for the information provided.
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