Home / Business and Economy / HDFC Launches India Consumption Growth Fund
HDFC Launches India Consumption Growth Fund
11 Feb
Summary
- New fund targets companies benefiting from India's consumption growth.
- Index tracks 30 stocks in FMCG, Auto, and Healthcare sectors.
- Minimum investment is Rs 100 during the NFO period.
HDFC Mutual Fund introduced the HDFC Nifty India Consumption Index Fund, aiming to offer investors exposure to companies expected to capitalize on India's sustained consumption growth. The New Fund Offer (NFO) is currently open and will close on February 13.
This scheme seeks to replicate the Nifty India Consumption Index, comprising 30 stocks from sectors such as FMCG, Automobile, and Healthcare. These companies derive over 50 percent of their revenues from domestic operations, reflecting a focus on India's consumption-driven economic expansion. Structural factors like rising incomes, favourable demographics, and digitalization support this growth narrative.
The fund will be managed by Nandita Menezes and Arun Agarwal. Investors can begin investing with a minimum of Rs 100 during the NFO period, with no upper investment limit. Post-NFO, the scheme will reopen for subscription and redemption. However, the fund house cautions that thematic funds, due to their concentrated nature, carry higher risks compared to diversified equity funds.
