NFO Alert: SBI Mutual Fund Launches Nifty India Consumption Index Fund
SBI Mutual Funds has announced the launch of the SBI Nifty India Consumption Index fund, an open-ended scheme designed to replicate or track the Nifty India Consumption Index. The New Fund Offer (NFO) for the scheme will be opened for subscription from October 16 to October 25, 2024.
The scheme will primarily invest between 95% and 100% of its assets in stock that make up the Nifty India Consumption Index, with up to 5% allocated to government securities (such as G-Secs, SDLs, Treasury bills, and other similar instruments specified by the RBI), also including triparty repo and units of liquid mutual funds.
The minimum investment application amount is Rs. 5000 and in multiples of Re. 1 thereafter. Investments can also be made through various options for Systematic Investment Plans (SIPs), including daily, weekly, monthly, quarterly, semi-annual, and contributions. The fund will be managed by Harsh Sethi, who has been with SBI Mutual Fund since 2007.
Shamsher Singh, MD and CEO of SBI Funds Management Said, India’s consumption growth is in a crucial state, driven by rising incomes, demographic changes, and structural shifts such as digitalization and urbanization. Important factors include a young and expanding population, increased discretionary spending, and a trend toward premium products in urban areas.
He added that sectors such as consumer durables, retail, healthcare, luxury goods, FMCG, aviation and e-commerce stand to gain as India becomes one of the world’s largest consumer markets. The SBI Nifty India Consumption Index Fund allows investors to invest in a diversified portfolio of companies within the domestic consumption sector, making it an attractive option for those seeking to benefit from india’s growing consumption trends.
