SBI MF launches Consumption Index Fund: All you need to know
Source: Business Standard
Mutual Funda(Photo: Shutterstock)
SBI Mutual Fund, India’s largest fund house, on Tuesday launched the SBI Nifty India Consumption Index Fund, an open-ended thematic scheme replicating/ tracking Nifty India Consumption Index. The New Fund Offer (NFO) period for the scheme is October 16 – 25, 2024.
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.
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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).
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.
The fund manager for SBI Nifty India Consumption Index Fund is Harsh Sethi who has been associated with the fund house since May 2007 and currently manages passive offerings such as SBI Nifty IT ETF, SBI Nifty Consumption ETF, SBI Nifty Private Bank ETF, SBI Nifty Midcap 150 Index Fund and SBI Nifty Small Cap 250 Index Fund.
• An investment of Rs 1 Lakh in June 2006 would have grown to Rs 9.10 Lakh in the Nifty 50, achieving a CAGR of 12.5%.
• The same Rs 1 Lakh invested in the Nifty India Consumption would have grown to Rs 12.82 Lakh, delivering a higher CAGR of 14.57%.
Data for the period Jan 2006 – Sep 2024.
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“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,” said D P Singh, Deputy MD & Joint CEO, SBI Funds Management.
SBI Nifty India Consumption Index Fund : Fund Facts
Scheme Name SBI Nifty India Consumption Index Fund
NFO Open Date October 16, 2024
NFO Close Date October 25, 2024
Plans & Options
Regular & Direct Plan; Both plans provide two options – Growth Option and Income
Distribution cum capital withdrawal (IDCW) Option for “IDCW Re-investment” and “IDCW Pay-out” is available
Application Amount
Minimum Investment Amount : Rs. 5000/- and in multiples of Re. 1 thereafter;
Additional Purchase Amount: Rs. 1000/- and in multiples of Re. 1 thereafter
Benchmark Nifty India Consumption TRI
Fund Manager Mr. Harsh Sethi
-
Exit Load For exit on or before 15 days from the date of allotment: 0.25%, -
For exit after 15 days from the date of allotment: Nil
” 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. 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,” said Shamsher Singh, MD & CEO, SBI Funds Management.
First Published: Oct 15 2024 | 2:57 PM IST
