India’s consumption story has attracted many big names.

Some of the best sector funds belong to the consumption sector.

Do you believe this sector will give good and consistent returns?

If yes, you should take a look at this NFO also: ICICI Prudential Bharat Consumption Fund Series 4.

Key Details of ICICI Prudential Bharat Consumption Fund Series 4 NFO

 

NFO Name

ICICI Prudential Bharat Consumption Fund- Series 4
NFO Launch Date 30 July 2018
Last Date for Application 13 August 2018
Minimum Investment Amount ₹ 5000
Maturity 1300 days from the date of allotment
Nature Close-ended

Invest in the ICICI Prudential Bharat Consumption Fund- Series 4

If you want to invest in this NFO, follow the below steps.

  1. Log in to your Groww account. If you are a new user,  sign up first.
  2. Decide the amount you would like to invest in ICICI Prudential Bharat Consumption Fund- Series 4.
  3. Email Groww support at support@groww.in with a request or call on 9108800604.

When investing in this NFO, an investor must remember that it is a close-ended mutual fund.

Also, the investor needs to invest a minimum of ₹5000 in it. The money invested in this fund cannot be withdrawn before the maturity date.

Investment Objective of ICICI Prudential Bharat Consumption Fund – Series 4

The investment objective of this scheme is to seek income by investing in a portfolio of fixed income securities/debt instruments maturing on or before the maturity of the scheme.

Benchmark of ICICI Prudential Bharat Consumption Fund- Series 4

The benchmark of this fund is NIFTY India Consumption Index.

Fund Category: ICICI Prudential Bharat Consumption Fund- Series 4

ICICI Prudential Bharat Consumption Fund – Series 4 is classified as a fund with consumption theme.

The stocks are of companies that benefit from growth in consumption and consumption related activities.

The potential beneficiaries of rising consumption are companies in the sector of consumer durables, consumer non- durables, pharma and healthcare, textile, power, aviation, and tourism, auto etc.

Asset Management Companies that offer these types of funds have professional fund managing teams who have great knowledge and expertise.

The options for investment in this fund are:

  • ICICI Prudential Bharat Consumption Fund- Series 4 (Cumulative)
  • ICICI Prudential Bharat Consumption Fund- Series 4 (Direct- Cumulative)
  • ICICI Prudential Bharat Consumption Fund- Series 4 (Dividend Payout)
  • ICICI Prudential Bharat Consumption Fund- Series 4 (Direct- Dividend Payout)

ICICI Prudential Bharat Consumption Fund has opened for subscription from 30th July 2018. It will concentrate on sectors benefitting from rising consumption in India.

Fund managers of ICICI Prudential Bharat Consumption Fund- Series 4

1. Mr. Sankaran Naren

Sankaran Naren is the Chief Investment Officer for Equities at ICICI Prudential Asset Management Company Limited, since February 2008 and its Executive Director since April 22, 2016.

2. Mr. Rajat Chandak

Rajat Chandak is a fund manager at ICICI Prudential Asset Management Company Limited. Mr. Chandak served as a manager from April 2010 to March 2011.

3. Mrs. Priyanka Khandelwal

She will manage investments under ADR/GDR and other foreign securities

Why Invest in ICICI Prudential Bharat Consumption Fund- Series 4?

India is one of the fastest-growing economies in the world. It also enjoys a major demographic advantage with a population of 1.25 billion, with over 50% in the working-age group.

The long-term consumption story is mostly based on:

1. A large growing population coupled with a low median age

2. An increase in labor force

3.  A consistent trajectory of rising incomes, boosting the growth of the middle class.

4. Shifting family structures

Given the volatility in the market and upcoming events on both the domestic and global landscape, we believe that it makes sense to launch Series 4 of the consumption fund, from an investment point of view.

Also Read: What Is Risk Profile? How to Asses Risk? 

Asset Allocation

The plan would invest 80% to 100% of the amount received from investors in equity and equity related instruments of companies that might gain from consumption and related activities.

The fund managers further plan to invest up to 20% of asset in debt and money market instruments with low to medium risk profile.

Investment in derivatives can be upto 50% of the Net Assets of the fund.

Instrument Minimum Allocation Maximum Allocation Risk Profile
Equity & equity related instruments of companies that could benefit from consumption and related activities 80 % 100 % Medium to High
Equity and equity related instruments of other than companies that could benefit from consumption and related activities 0 % 20 % Medium to High
Debt and Money Market instruments 0 % 20 % Low to Medium

Should you invest in this fund?

This fund is suitable for investors who are seeking long-term wealth creation in a close ended equity scheme.

This fund aims to provide capital appreciation by investing in a well-diversified portfolio of stocks that could benefit from growth in consumption related activities

Investors looking to invest in this fund should keep in mind that this is a  consumption themed fund.

It will invest in sectors that potentially benefit from consumption.

Since this is a closed-ended fund, an investor cannot take their money out anytime they feel like. The money will stay invested in the fund for a period of 1300 days from the date of allotment.

Investors looking for liquidity should preferably not invest in this fund.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww