Bajaj Finserv NFO Features: If you like to invest in New Fund Offer (NFO) then
NFOs of Bajaj Finserv Mutual Fund can keep an eye on Bajaj Finserv Consumption Fund. This NFO is open for subscription till 22 November 2024. It was opened for subscription on 8 November. India’s consumption story is strong and this sector is growing rapidly. Keeping this in view, this new scheme of mutual fund has been designed.
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What is the objective of launching this scheme?
Bajaj Finserv Consumption Fund aims to generate high returns for investors over the long term by investing primarily in equity and equity-related securities of companies that are likely to directly or indirectly benefit from domestic consumption based demand. This scheme will be benchmarked against Nifty India Consumption Total Return Index (TRI). The scheme will be managed by Nimesh Chandan, Sorabh Gupta and Siddharth Chaudhary.
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Special features of Bajaj Finserv Consumption Fund NFO
Issue Open: November 8, 2024
Issue closing: November 22, 2024
Category : Thematic – Consumption
Benchmark: NIFTY India Consumption TRI
Minimum application amount: Rs 500
Exit Load: 1% on redemption within 3 months
Lock in period: none
Riskometer: Very High
Consumption a strong theme
Ganesh Mohan, CEO, Bajaj Finserv AMC, says that India’s consumption outlook is changing due to continuous increase in income and urbanization and people’s shift from basic to discretionary spending. The ‘Consumption’ sector as a theme is favorable for investment as its fundamentals are strong compared to the broader markets. We certainly believe that with growth in sectors such as FMCG, Food Services & Quick Commerce, Realty and Auto expected to see significant expansion in the coming year, this fund will become an asset to our investors’ portfolio in the long run.
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Better opportunities for investors
Nimesh Chandan, Chief Investment Officer, Bajaj Finserv AMC, says changing demography and rising income levels are pushing the country to consume more, better, better and easier. While the market has focused on the capex side of the economy over the last 2 years, the consumption sector has commanded attractive valuations compared to its own historical valuations as well as a premium to the broader markets. Bajaj Finserv Consumption Fund is well placed to take advantage of megatrends and provide investors an opportunity to participate in the growth story of domestic demand in the country.
India leading consumer market
India is one of the largest consumer markets in the world. India’s consumer market is expected to reach $4 trillion by 2030. The country’s consumption story has strengthened due to increasing per capita income, increasing number of working youth, urbanization, digitalization and increasing availability of credit. Due to which Bajaj Finserv Consumption Fund can perform better in future.
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Who should invest in NFO?
Bajaj Finserv Consumption Fund can prove to be a better option for those investors who want to invest for the long term. The consumption theme of this fund focuses on India’s long-term growth story, hence investors should invest in this scheme with a target of at least 5 years. Especially investors who want to benefit from investing in the growth taking place in India’s consumer market can consider this fund. Being a thematic equity fund, it has more market risk. This scheme has been placed in “High Risk Category” on Riskometer.
(Disclaimer: Investment in mutual funds has a direct impact on the ups and downs of the stock market. The purpose of Financial Express here is not to give advice on investing in any fund, it is only to provide information. Any investment decision should be taken based on the opinion of your investment advisor. Just take it.)
