NFO Alert: ITI Mutual Fund launches Bharat Consumption Fund

ITI Mutual Fund on Wednesday announced the launch of the ITI Bharat Consumption Fund, an open-ended thematic fund that will follow the consumption theme. The scheme will predominantly invest in equity and equity-related securities of companies engaged in consumption and consumption-related activities or allied sectors.

The new fund offer (NFO) will open for subscription on February 6 and close on February 20.

ITI Bharat Consumption Fund aims to offer long-term capital growth by investing in companies that are likely to benefit directly or indirectly from domestic consumption-led demand, providing diversification through the theme and potential capital appreciation, according to a release by the fund house.


The fund will be managed by Rohan Korde and Dhimant Shah. It will offer investors exposure to growth-driven consumer sectors like FMCG, auto, retail, healthcare, and others.

The fund is expected to benefit from evolving structural, cultural, and digital factors affecting Indian consumers. These changes are driven by urbanization, rising incomes, and shifting consumer trends, leading to higher disposable incomes and increased discretionary spending on consumption-related products and services.

The minimum investment amount is Rs 5,000, with subsequent investments in multiples of Re 1. The scheme will allocate 80-100% in equity and equity-related instruments of companies engaged in consumption and consumption-related activities or allied sectors. It will also allocate 0-20% in other equity and equity-related securities, 0-20% in debt and money market instruments, and 0-10% in units issued by REITs and InvITs.

"The consumption space offers a compelling investment opportunity, driven by rising incomes, evolving consumer behavior patterns, and rapid growth in emerging markets. As economies recover and spending shifts toward premium and innovative products, this sector is poised for sustainable growth. Investing in a consumption-oriented fund would allow investors to capitalize on these long-term structural trends," said Rohan Korde, Fund Manager at ITI AMC.

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The ITI Bharat Consumption Fund aims to invest in a blend of established, scalable, and emerging businesses within the consumption theme. This fund is suitable for investors across multiple generations, looking for a diversified portfolio that spans various sectors within the consumption space. The portfolio will be created using a combination of top-down and bottom-up approaches, making it market-cap agnostic.

The scheme is suitable for investors seeking capital appreciation over the long term and who want to invest predominantly in equity and equity-related instruments of companies that are likely to benefit directly or indirectly from domestic consumption-led demand.