Are you a keen believer in India’s consumption growth story?
If yes, we have great news for you. ICICI Prudential AMC has launched ICICI Prudential Bharat Consumption Fund on 26th March 2019. This fund is an open-ended fund.
The subscription for the fund will remain opened till 9th April 2019.
The minimum investment in the scheme is that of INR 5000 (in multiples of one rupee thereafter)
The plans are available under both regular and direct routes. Also, both the growth and dividend options are available under this scheme.
In this article
- Key Details
- How Can You Invest in ICICI Prudential Bharat Consumption Fund through Groww?
- ICICI Prudential Bharat Consumption Fund: Detailed Analysis
- Sectors In Focus Under the Scheme
- Why Should You Invest in ICICI Prudential Bharat Consumption Fund?
- The Fund Managers
- The Bottom Line
|Name of the Fund||ICICI Prudential Bharat Consumption Fund|
|Subscription starting date||26th March 2019|
|Subscription closing date||9th April 2019|
|Fund Type||Focus on consumption story in India|
|Plans||Direct and Regular|
|Options||Growth and Dividend|
|Minimum Investment||INR 5000 and in multiples of one rupee thereafter|
|Benchmark||Nifty India Consumption Index (Comprises 30 stocks listed in NSE)|
|Options Available||SIP, STP, SWP|
|Fund Managers||Rajat Chandak, Dharmesh Kakkad, Priyanka Khandelwal (For overseas investments)|
|Exit Load||Exit load is 1 percent if redeemed within 1 year from the date of allotment|
Note: Please note that the following are available for investment under the scheme:
- ICICI Prudential Bharat Consumption Fund – Growth & Dividend
- ICICI Prudential Bharat Consumption Fund – Direct – Growth & Dividend
How Can You Invest in ICICI Prudential Bharat Consumption Fund through Groww?
If you want to invest in this NFO, the following steps must be followed:
1.Send an email to firstname.lastname@example.org, requesting the name of the NFO you want to invest in, along with the amount.
2. Groww will revert with a BSE payment link and through you can directly make the payment via netbanking.
If you are a new user, you need to sign up first and then start investing:
When investing in this NFO, an investor must remember that it is an open-ended mutual fund and the minimum investment has to be INR 5000.
Let’s discuss about the fund in detail in order to see whether it is a good fit for your portfolio.
ICICI Prudential Bharat Consumption Fund: Detailed Analysis
Let’s analyze this fund in detail and look at some of its features
The investment objective of the scheme is to invest in a well-diversified portfolio of stocks that could benefit from the growth in the Indian consumption story which today is considered as the fastest growing market across the globe.
Twin factors driving the consumer market in India?
In the last decade, there have been primarily two factors that have contributed to the consumption sector in India:
1. India has witnessed a period of low-interest rate in the last few years which has led to easy access to credit;
2. Secondly, the access to consumer credit too has been easy over the last decade further clocking growth
Sectors In Focus Under the Scheme
As the name suggests, the fund is purely focused on the consumption story in India and therefore targets the sectors under it.
1.Sectors that caters to FMCG, Retail, Quick Service Restaurants;
2. Sectors contributing to comfort such as Consumer durables, telecom, media & entertainment, automobiles, paints, tourism etc.
Companies that were included under the previous series of the same scheme include ITC Ltd., Titan Company, Maruti Suzuki India Ltd., TVS Motor Co. Ltd., NTPC, Motherson Sumi Systems, Britannia Industries Ltd. etc.
Why Should You Invest in ICICI Prudential Bharat Consumption Fund?
As discussed above, there are various factors that are driving the industry but there are other parameters too that help us make out that this consumption story is here to stay.
To understand this, we will look at two reasons. One taken from historical analysis of other emerging economies and the other factor relating to India.
1. In Sync With the Growth of the Economy
The first factor was quoted by the Managing Director and CEO of ICICI Prudential AMC, Mr. Nimesh Shah.
He points out that globally there has been a phenomenon wherein if a particular country’s GDP crosses the $2000 mark, there seems to be a significant rise in the discretionary spending by the people of those countries.
The thing to note here is that India is at the cusp of this transformation and this is going to unravel in 2019-20. Last reported, India’s GDP per capita is hovering around the mark of $2000.
2. The Millennial
The second reason corresponds to the golden period India is witnessing at the current juncture. Today, India has the largest millennial population across the globe.
This, therefore, offers opportunity and tremendous growth potential for consumer markets and retailers alike. Another thing to note here is that the current millennial generation differs from previous generations by their lifestyle choices, consumption patterns and standard of living.
Both these parameters combined give us solid reasons to consider this scheme for investment. Other factors such as diverse population within India, increasing urbanization, improved connectivity owing to technology advancement etc. are also driving the industry.
|Fund Name||1Y||3Y||5Y||Expense Ratio||Turnover Ratio||Category||Risk|
|Reliance Consumption Fund - Direct - Growth||2.86%||4.67%||6.99%||2.2%||1%||Equity
|SBI Consumption Opportunities Fund - Direct - Growth||-5.02%||12.74%||14.01%||1.5%||36%||Equity
|Sundaram Rural and Consumption Fund - Direct - Growth||-2.29%||11.2%||15.21%||1.35%||20%||Equity
|Tata India Consumer Fund - Direct - Growth||-5.89%||19.56%||NA||0.68%||20%||Equity
|Benchmark||1-Year Returns||3-Year Returns||5-Year Returns||Since Inception|
|Nifty India Consumption Index||3.66%||–||14.09%||14.04%|
There are few funds in this category that have done well such as SBI Consumption Opportunities Fund and Sundaram Rural and Consumption Fund. Both of these funds are rated 4 star by Groww.
The Fund Managers
Mr. Chandak joined the company in May 2008 and is currently a Fund Manager at ICICI Prudential AMC. He has an enormous amount of experience in asset management and research analysis.
Mr. Chandak has completed B.Com from Sydenham College and also MBA in Finance from Institute for Financial Management and Research.
- ICICI Prudential Balanced Advantage Fund
- ICICI Prudential Regular Savings Fund
- ICICI Prudential Bluechip Equity Fund.
2. Dharmesh Kakkad
Mr. Dharmesh Kakkad has been associated with the firm since 2009 and is currently working as a manager in ICICI Prudential AMC.
Mr. Kakkad is extremely qualified as he is a CA, CFA and B.Com from Narsee Monjee Institute, Mumbai.
- ICICI Prudential Balanced Advantage Fund
- ICICI Prudential Equity Arbitrage
- ICICI Prudential Equity Savings Fund
3. Priyanka Khandelwal
Ms. Priyanka Khandelwal is working as an Investment Analyst with ICICI Prudential AMC since February 2016. She has been associated with the company since October, 2014 and manages investment schemes which have the mandate to make overseas investments.
She is a qualified CA, CFA and CS. She also has a B. Com degree in Financial reporting, Taxation, Marketing and HRM from Mumbai University.
Some of the funds managed by her include:
The Bottom Line
Given the benefits offered by this fund of betting on India’s consumption growth story, expertise in management and sea change in the development of the country through rising middle class and reforms, ICICI Prudential Bharat Consumption Fund can be looked at for investments for a long term view in mind.
Disclaimer: The views expressed in this post are that of the author and not those of Groww