Kotak Mutual Fund on October 25, 2023 announced the launch of Kotak Consumption Fund. The open-ended scheme will invest in equity and equity-related securities of companies engaged in consumption, and consumption related activities.
The new fund offer (NFO) opened for subscription on October 25, 2023 and will close on November 8, 2023. The minimum investment amount is Rs. 5,000 and in multiples of Re.1 for purchase and Re 0.01 for switches during the NFO period.
Kotak Mutual Fund said in a press statement that 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. It will invest in the sectors and/or industries, such as fast moving consumer goods (FMCG), financial services, automobiles and auto components, consumer durables, telecommunication, consumer services, healthcare, power, realty and textiles, among others. All these form the consumption universe based on the investment strategy of the scheme, it said.
It added that the fund will offer investors long-term capital growth by investing in companies actively involved in these sectors, while simultaneously providing them with an opportunity for diversification and capital appreciation.
“The structural growth is led by a shift towards organised markets due to urbanisation and rising incomes. Increasing discretionary spending due to the rise in number 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,” it said.
Devender Singhal, executive vice president, Kotak Mahindra Asset Management Company (AMC) said: “The country’s consumption story is still unfolding. The consumption potential is driven by our country’s rising income, strong digital revolution, unique demographic makeup, and changing consumer trends. The Kotak Consumption Fund offers investors an avenue to participate in our nation’s aspirations, targeting investments in the opportunities within the resilient consumption sector.”
Nilesh Shah, managing director, Kotak Mahindra AMC 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. We offer this fund for our investors who want to be a part of country’s growing consumption story and are looking for resilient sectors.”