Bajaj Finserv AMC launches ‘Bajaj Finserv Consumption Fund’ 

Udaipur : Bajaj Finserv AMC has announced the launch of the Bajaj Finserv Consumption Fund, an openended equity scheme following the consumption theme. The fund opens for subscription on 8th November and the New Fund Offer period ends on 22nd November 2024.

The Bajaj Finserv Consumption Fund is a true-to-label fund that will strategically invest in sectors aligned with emerging consumption megatrends.These are influential megatrends shaping consumption habits across India.Riding the wave of these changes, the fund aims to identify opportunities in sectors like FMCG, automobiles, consumer durables, consumer goods, healthcare, realty, telecom, power and services, all of which are increasingly contributing to India’s rapid consumption growth.

The fund will focus on companies positioned to benefit from 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. 

Speaking on the launch, Mr. 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”.

#A recent study by Bajaj Finserv AMC showsan increase in purchasing power, with India’s per-capita income expected to surpass $3,000 by 2025. Thestudy reveals that consumption-related sectors are on the rise in the country and are poised for rapid growth in the long term. The burgeoning middle class, whichis likely to grow to nearly 40% of the population by 2030 will drive this consumption boom. Additionally, megatrends in consumption indicate that the e-commerce customer base will grow by 2.7 times by FY25, reflecting the rise of consumerism and urbanization.

Nimesh Chandan, Chief Investment Officer, Bajaj Finserv AMC adds“The changing demographics and rising income levels are driving the country to consume more, consume well, consume better and consume easily. While market has focussed on capex side of the economy in past 2 years. The consumer sectors have come to attractive valuations compared to their own historical valuation as well as premium to broad markets. Bajaj Finserv Consumption Fund is well positioned to take advantage of the megatrends and offer investors an opportunity from the growth of domestic demand in this country across diverse sectors. Our INQUBE philosophy and equity research process will guide us in choosing and investing in companies with long-term wealth creation potential for investors.”

The Bajaj Finserv Consumption Fund is suitable for investors seeking wealth creation over long term by investing predominantly in equity and equity related instruments of companies that are likely to benefit directly or indirectly from domestic consumption led demand. The scheme will be benchmarked against the Nifty India Consumption Total Return Index (TRI) that reflects the performance of a diversified portfolio of companies representing domestic consumption.These includes sectors like Consumer durables, Non-durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels, Media andEntertainment, etc.

The fund will be managed by Mr. Nimesh Chandan, CIO, Bajaj Finserv AMC, along with Sorbh Gupta, Senior Fund Manager for equity investments, and Siddharth Chaudhary, Senior Fund Manager for debt investments. 

The minimum investment amount is ₹500 for lumpsum as well as Systematic Investment Plan. An exit load of 1% shall be imposed if the investment is redeemed within three months from the date of allotment. The fund offers both Growth and IDCW (Income Distribution cum Capital Withdrawal) optionsso investors can choose a plan that suits their investment goals.