NFO Update: Edelweiss Mutual Fund launches consumption fund

Edelweiss Mutual Fund has announced the launch of Edelweiss Consumption Fund, an open-ended equity scheme following the consumption theme.

The new fund offer (NFO) will be open for subscription on January 31 and will close on February 14.

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The fund seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related securities with a focus on companies engaged in consumption and consumption-related sectors or allied sectors, according to a press release by the fund house.

“"Ranked among the top two consumer markets worldwide, India’s consumption story is poised for exponential growth. Driven by rising disposable incomes, urbanization, digitalization, easy credit, and a youthful demographic dividend, consumer businesses are set to thrive. The Edelweiss Consumption Fund aims to capitalize on this multi-decade opportunity. The launch is also timely, as stock prices have corrected meaningfully, presenting a good entry point for long-term investors," said Radhika Gupta, MD & CEO, Edelweiss Mutual Fund.

India is riding a consumption wave on account of rising per capita income ushering in the growth of consumer-led businesses. The Edelweiss Consumption Fund seeks to cater to investors looking for opportunities in India's consumption-driven growth story by investing in core, emerging, and cyclical businesses. Taking a diversified approach to investing across various consumption sub-sectors such as FMCG, consumer staples, consumer durables, education, healthcare, etc. The fund aims to provide long-term wealth-creation opportunities for investors, said the release.

The stock selection approach at the ‘Edelweiss Consumption Fund’ is agnostic in its investment style, focusing on businesses that can be classified as quality leaders, growth champions, and value picks.

The fund will leverage India's diverse consumption landscape, picking and investing in businesses that meet its selection criteria. The fund’s sectoral and thematic exposure will be aligned with India’s economic resilience and evolving consumer preferences, making it a promising investment avenue.

The fund is accessible to a wide range of investors with a minimum investment amount of Rs. 100. The scheme is suitable for investors seeking to diversify their portfolios with an equity investment option focused on India's consumption theme.

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The scheme will be managed by Dhruv Bhatia, Trideep Bhattacharya and Amit Vora. It will be benchmarked against NIFTY India Consumption TRI.

The minimum investment amount is Rs 100 and in multiples of Re 1 thereafter. An exit load of 1% of the applicable NAV will be there, if the units are redeemed /switched out on or before 90 days from the date of allotment. If the units are redeemed /switched out after 90 days from the date of allotment, the exit load will be nil.

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