SBI Mutual Fund will introduce the SBI Nifty India Consumption Index Fund, which will open tomorrow, October 16. The open-ended scheme will replicate or track the Nifty India Consumption Index, and subscriptions are open until October 25, 2024. The Nifty India Consumption Index comprises 30 companies listed on the National Stock Exchange (NSE).
The fund’s investment objective is to generate returns that reflect the performance of the securities represented in the Nifty India Consumption Index, subject to tracking error.
The fund house stated that investors would get an opportunity to invest in Nifty India Consumption index as the NFO is designed to reflect the behaviour and performance of a diversified portfolio of companies representing the domestic consumption sector such as Consumer Non-Durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels, Media & Entertainment, etc. and where more than 50% of company’s revenue comes from domestic markets (other than export income).
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.
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 fund manager for SBI Nifty India Consumption Index Fund is Harsh Sethi. He 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.
Shamsher Singh, MD & CEO of SBI Funds Management said, “India’s consumption is at a turning point, driven by rising incomes, urbanisation, and digitalisation. Key factors include a young population, increasing discretionary spending, and the growth of premium segments in urban areas.”
Singh further said that sectors like consumer durables, retail, healthcare, and e-commerce stand to gain as India becomes one of the world’s largest consumer markets.
D P Singh, Deputy MD&Joint CEO, SBI Funds Management Limited, said: “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.”