India’s largest mutual fund house SBI Mutual Fund has announced the launch of SBI Nifty India Consumption Index Fund, an open-ended scheme tracking Nifty India Consumption Index.
The New Fund Offer (NFO) period for the SBI Nifty India Consumption Index Fund scheme is October 16–25, 2024.
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, SBI Mutual Fund said in a release.
The Nifty India Consumption Index comprises of 30 companies listed on the National Stock Exchange (NSE).
SBI Nifty India Consumption Index Fund NFO minimum application amount
The minimum application amount required is 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.
The fund manager for SBI Nifty India Consumption Index Fund is Harsh Sethi who has been associated with the fund house since May 2007.
Shamsher Singh, MD & CEO, SBI Funds Management Limited, said: “India’s consumption growth is at a pivotal moment, driven by rising incomes, demographic shifts and structural changes like digitalization and urbanization. Key factors include a young and growing population, increasing discretionary spending, and the rise of premiumization in urban areas.”
As India becomes one of the world’s top consumer markets, sectors like consumer durables, retail, healthcare, luxury good, FMCG, aviation and ecommerce stand to benefit significantly, Singh added.
Also read: Rs 2000, 3000, 5000 per month in SIP: How long will it take to make Rs 1 crore? See calculations
Opportunity to benefit from India’s consumption story
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.
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.