The upcoming NFO, Bajaj Finserv Consumption Fund, introduced by Bajaj Finserv Mutual Fund, offers investors an equity-focused opportunity with a unique theme rooted in India’s consumption-driven demand. Opening for subscription on November 8, this fund is designed to tap into companies positioned to benefit from long-term consumption trends.
What is NFO?
A New Fund Offer (NFO) marks the launch period for a mutual fund scheme, allowing investors to purchase units at an initial price, usually ₹10 per unit. NFOs provide entry into new thematic or sector-focused funds, enabling investors to capitalise on emerging trends and sectors anticipated for substantial growth, such as consumption-focused themes.
About Bajaj Finserv Mutual Fund
Bajaj Finserv Mutual Fund, part of the renowned Bajaj Finserv group, offers diverse investment options across asset classes. Leveraging skilled fund managers, the AMC crafts strategies aligned with shifting market dynamics. Known for its innovative financial approach, Bajaj Finserv’s entry into mutual funds underscores a commitment to modern investor needs. By launching theme-based funds like the Consumption Fund, Bajaj Finserv Mutual Fund provides products tailored for long-term wealth creation.
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What is Bajaj Finserv Consumption Fund?
The Bajaj Finserv Consumption Fund is an open-ended equity scheme designed around the consumption theme, targeting companies benefiting from domestic consumption demand. Opening on November 8 and closing on November 22, the NFO will reopen for regular transactions within five business days post-allotment. Managed by Nimesh Chandan, Sorbh Gupta, and Siddharth Chaudhary, the scheme is benchmarked against the Nifty India Consumption TRI, focusing on consumer-driven sectors in India.
The fund’s objective is to generate long-term capital appreciation through equity investments in companies involved directly or indirectly in domestic consumption. Its allocation strategy includes 80-100% investment in consumption-related equities, along with additional allocations to non-consumption equities, debt, money market instruments, and REITs or InvITs, offering diversified growth potential within the expanding consumption sector.
Bajaj Finserv Consumption Fund: Investment Details
– Investment Objective: Long-term capital appreciation by investing predominantly in companies benefiting from domestic consumption.
– Minimum Investment: ₹500 for a lumpsum, or through SIP (Systematic Investment Plan) with a minimum of six installments.
– Asset Allocation:
– 80-100% in equity related to domestic consumption.
– Up to 20% in other equities.
– Up to 20% in debt/money market instruments.
– Up to 10% in REITs and InvITs.
– Exit Load: 1% exit load applies if units are redeemed within three months; no load applies after three months.
This fund is intended for investors seeking wealth creation over the long term, particularly those who wish to invest in companies benefiting from domestic consumption trends. With a broad focus, the fund targets not just consumer goods but a range of sectors where increased consumption is likely to drive growth.
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Bajaj Finserv Share Price
Bajaj Finserv’s share price stands at ₹1,734.90 as of November 5, reflecting steady investor confidence. The company’s strategic diversification, including recent mutual fund launches, continues to bolster its position in India’s financial market.
The Bajaj Finserv Consumption Fund offers investors a chance to tap into India’s growing consumption trends, aiming for long-term gains by investing in companies poised to benefit from rising consumer demand.
