Kotak Mutual Fund launches Kotak Consumption Fund
Kotak Mahindra Asset Management Company announced the launch of Kotak Consumption Fund. The new fund offer (NFO) has opened on October 25 and will close on November 8, 2023.
This thematic scheme will invest in shares of companies engaged in consumption and consumption related activities. The fund will offer investors an opportunity to invest in India’s consumption potential, which is being driven by the trinity of structural, cultural and digital factors. The structural growth is led by a shift towards organized markets due to urbanization and rising incomes. Increasing discretionary spending due to the rise of nuclear and aspirational families is creating a cultural influence, leading to higher consumption. This is further propelled by a digital impact leading to a surge in online shopping and internet usage.
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The fund will invest in the sectors or industries like Fast Moving Consumer Goods, Financial Services, Automobiles and Auto Components, Consumer Durables, Telecommunication, Consumer Services, Health Care, Power, Realty and Textiles etc., which form the Consumption universe based on the investment strategy of the scheme. The fund will be managed by Devender Singhal.
Nilesh Shah, Managing Director, KMAMC said, “With the launch of Kotak Consumption Fund, we are offering a window for our investors to be a part of country’s fast-evolving consumption story. It’s about tapping into the shift from basic to smart – from analogue to digital, from feature phones to smartphones, and from single-brand to multi-brand retail choices. This change reflects not just a change in buying capacity, but also a shift in aspirations.”
Minimum investment in this scheme is pegged at Rs 5,000 and subsequently in multiples of Re.1 thereafter.
There are 18 consumption focused schemes that manage assets worth Rs 18,408 crore. These schemes on an average have given 23.11% returns, in three years ended October 31, 2023. There are five passively managed scheme among these.