SBI Mutual Fund NFO:The New Fund Offer (NFO) of SBI Mutual Fund, India’s largest mutual fund house, SBI Nifty India Consumption Index Fund is open till October 25. This NFO was launched on 16 October. This is an open ended equity scheme which will track the Nifty India Consumption Index. Investment can be made in this NFO with a minimum of Rs 5000. After which any amount can be invested in multiples of Re 1. Investment can also be made in this fund through SIP (Systematic Investment Plan) on daily, weekly, monthly, quarterly, half yearly and yearly basis.
LIC MF Return: 5 champions of LIC Mutual Fund, giving 35 to 47% annual returns, SIP starts from Rs 200 in all
Why can you get returns in this fund
Shamsher Singh, MD and CEO of SBI Funds Management Limited, says that consumption growth in India is strong due to rising income, demographic changes and structural changes like digitalization and urbanization. The main factors behind strong consumption growth are the large number of youth, increasing population, increasing expenditure along with increasing income and continuous expansion of urban areas. Due to India’s strong consumption story, SBI Nifty India Consumption Index Fund is expected to give better returns in future.
SIP Emerging Stars: These are the 5 emerging stars of mutual funds, they dominated the return charts as soon as they came in the market, are giving returns up to 85%.
95 to 100% amount in equity
This scheme will mainly invest at least 95 percent and maximum 100 percent of its assets in Nifty India Consumption Index stocks. Whereas up to 5 percent of the assets will be invested in government securities (like G-Sec, SDL, Treasury Bills and any other such options). SBI Nifty India Consumption Index Fund aims to deliver returns to investors similar to the total returns of the securities included in the underlying index, subject to tracking errors. Nifty India Consumption Index includes 30 companies listed on the National Stock Exchange. However, it should be noted that there is no guarantee that the investment objective of the scheme will be achieved.
In which sectors there is more investment
DP Singh, Deputy MD and Joint CEO, SBI Funds Management Limited, says that domestic consumption has been India’s primary economic growth engine, taking the country to the next phase of its growth. Along with rising income, increasing spending on essential goods or needs will boost consumer durables, automobile, healthcare services, pharma, hotel, entertainment and retail industries.
SIP in Midcap: These 5 midcap funds doubled their money in 3 years and 4 times in 5 years, are giving 35 to 46% returns in SIP.
For whom is this option better?
In such a situation, for investors who want to benefit from India’s strengthening consumption story, this NFO is a better option for investment. India has now joined the world’s top consumer market, which will greatly benefit sectors like consumer durables, retail, healthcare services, luxury goods, FMCG, aviation and e-commerce. SBI Nifty India Consumption Index Fund provides investors an opportunity to invest in a diversified portfolio of companies within the domestic consumption sector.
(Note: We have given information about mutual fund NFO here. It is not guaranteed whether the past returns of the index will continue in future or not. It may or may not continue in the future. There is risk in the market, Therefore, take expert advice before investing.)