To harness the power of India’s thriving consumption sector and to offer investors a strategic opportunity to benefit from the country’s escalating consumer demand, Axis Mutual Fund, one of the fastest-growing fund houses in India, proudly announces the launch of Axis Consumption Fund. The New Fund Offer (NFO), benchmarked against the NIFTY India Consumption TRI, will open for subscription from 23rd August to 6th September 2024. The fund will be managed by Mr. Hitesh Das, Mr. Shreyash Devalkar, and Ms. Krishnaa Narayan (For Overseas Securities), who are committed to leveraging this thematic investment opportunity. The Axis Consumption Fund aims to provide a diversified portfolio that reflects the broad spectrum of India’s consumption-driven sectors, including FMCG, Auto, Telecommunication, Healthcare, Realty, and more.
Highlights:
- Category: Thematic
- Benchmark: NIFTY India Consumption TRI
- Fund Managers: Mr. Hitesh Das, Mr. Shreyash Devalkar, and Ms. Krishnaa Narayan (For Overseas Securities)
- NFO open date: 23rd August 2024
- NFO close date: 06th September 2024
- Minimum Application Amount: Rs.100 and in multiples of Rs.1/- thereafter
- Exit Load:
- If redeemed/switched out within 12 months from the date of allotment:
- For 10% of the investment: Nil
For the remaining investment: 1% - If redeemed/switched out after 12 months from the date of allotment: Nil
Typical Investment Horizon: 5+ years
Mr. Ashish Gupta, Chief Investment Officer, said, “The Axis Consumption Fund offers investors an opportunity to participate in this unfolding trend and aims to build a robust portfolio that captures this dynamic growth. This fund not only reflects the current consumption trends but also anticipates future growth drivers, positioning our investors to reap the benefits of India’s economic transformation. This thematic approach aligns with the fundamental drivers of our nation’s progress, potentially offering a unique avenue for long-term wealth creation.”
Axis Consumption Fund
The Axis Consumption Fund, specialized to capitalize on India’s dynamic consumption sector, providing investors with a well-rounded exposure to industries poised to benefit from India’s ongoing structural and cultural shifts in consumer behaviour. The fund will follow a bottom-up approach with a quality-focused style of investing, capturing the emerging trend in the consumer story. With a strategic focus on sectors beyond FMCG, like consumer discretionary, retailing, auto, and realty, the Axis Consumption Fund will offer a diversified investment approach aimed at capturing the growth potential driven by the flourishing Indian consumer market. Investors can expect to participate in the growth story of India’s expanding middle class and increasing consumer spending, all while benefiting from the fund’s expert management and sector-specific insights.
Strategic Focus Areas:
- Innovation: Innovation is not limited to Tech industry, but there is much innovation happening within the consumption segment (sports energy drinks, cold pressed oils, etc.)
- Formalization: Increased market share with the shift towards organised market in sectors such as apparel, tiles, and sanitary ware, textile, footwear, jewellery, etc.
- Urbanization: The shift towards urbanization has led to changing life styles and work styles impacting sectors like Real Estate and increased wallet share of Consumer Discretionary
- Penetration: Massive scope for online penetration from categories like online fashion and grocery, quick commerce
- Premiumization: Consumers are upgrading to packaged, branded or higher priced offerings, or adding new products or services to their consumption routine. E.g. Auto, FMCG, Beauty, and Personal Care
