LIC Mutual Fund has launched a new fund, the LIC MF Consumption Fund. This equity fund will invest in stocks of consumption and related companies. Investments in this new fund offer (NFO) are open until November 14th. But be smart, before making any investment, don’t do anything in hurry, read all the documents carefully.

Nifty India Consumption Total Return Index will be the benchmark

Investments in the LIC MF Consumption Fund can be made at NAV starting November 25th. The scheme’s fund managers are Sumit Bhatnagar and Karan Doshi. The Nifty India Consumption Total Return Index (TRI) will be its benchmark. According to LIC Mutual Fund, the scheme will invest in equity and equity-related instruments with a long-term horizon. It will invest 80-100% in stocks of companies that have the potential to benefit the most from India’s consumption story.

Minimum lump sum investment of Rs 5000 during the NFO period

This scheme will have the flexibility to invest up to 20% of its funds in shares of companies that are not related to the consumption theme. These can include companies with varying market capitalizations. Investors must make a lump sum investment of at least ₹5,000 during the NFO period. If an investor wishes to invest daily, they can invest as little as ₹100. Monthly investments can be made as low as ₹200. Quarterly investments can be made as low as ₹1,000.

LIC Mutual Fund stated that this scheme was launched in response to the positive outlook for consumption in India. Rising incomes, urbanization, the growing use of digital transactions, and a higher share of the youth population are expected to drive the performance of consumption-related companies in India. LIC Mutual Fund was established in 1989. The fund house’s portfolio includes a variety of schemes.

Should you invest?

Experts say that the reduction in GST rates is expected to boost consumption, benefiting consumption companies. The LIC MF Consumption Fund aims to capitalize on this opportunity. The consumption theme is broad, covering a wide range of sectors, including FMCG, auto, consumer durables, and electronics. More than a dozen consumption funds already exist in the market. If you don’t have a consumption fund in your portfolio, you can invest in this scheme. Consult an investment advisor for advice on this matter.