NFO Alert: Bank of India Mutual Fund launches consumption fund

Bank of India Mutual Fund has announced the launch of Bank of India Consumption Fund, an open-ended equity scheme that follows the consumption theme.

The new fund offer or NFO will open for subscription on November 29 and close on December 13. The scheme will reopen for continuous sale and repurchase on December 23.

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The investment objective is to provide long-term capital appreciation from an actively managed portfolio of equity and equity-related securities of companies engaged in consumption and consumption-related or allied sectors.

"The growing Indian economy is helping to increase per capita GDP, which generates higher disposable income. The growing income levels are resulting in higher discretionary spending and an increase in financial savings. This changing spending pattern has an influence on many businesses and may also result in the creation of a newer profit pool. Bank of India Consumption Fund looks to capitalize on the increasing discretionary spending by Indian
consumers," said Alok Singh, CIO, Bank of India Investment Managers Private.

The scheme will be benchmarked against Nifty India Consumption TRI and will be managed by Nitin Gosar.

For 10% of investments, if redeemed/switched-out within three months from the date of allotment, the exit load will be nil. For remaining investments, an exit load of 1% will be applicable. If redeemed/switched-out after three months from the date of allotment, the exit load will be nil.

The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter. The minimum additional purchase amount is Rs 1,000 and in multiples of Re 1 thereafter.

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The scheme will allocate 80-100% in equity and equity-related instruments of companies engaged in consumption and consumption-related sectors or allied sectors, 0-20% in other equity and equity-related instruments, 0-20% in debt and money market instruments, and 0-10% in units issued by REITs and InvITs.

"We have always endeavored to offer sustainable investment constructs focused on long-term wealth creation for our investors. This new offering from Bank of India Mutual Fund focuses on a broad theme that has traditionally comprised the core allocation for most diversified schemes and yet has an ever-evolving and broad array of industries & themes that comprise the rapidly growing consumer basket of Indian households. We feel that this is ideal for investors looking for broad thematic exposure across an equity portfolio with a time horizon of 3 years and above," said Mohit Bhatia, CEO, Bank of India Investment Managers Private.

The scheme will invest across market capitalisation. The fund manager would endeavour to allocate to companies using a bottom-up approach while taking exposure in sectors that will benefit from economic trends in consumption.

The scheme is suitable for investors seeking long-term capital appreciation, and are keen to invest in equity and equity-related securities of companies engaged in consumption and consumption-related or allied sectors.