Axis Asset Management Company has launched the Axis Consumption Fund, opening its New Fund Offer (NFO) from August 23 to September 6, 2024. This new equity scheme is designed to capitalize on the growth potential within India’s rapidly expanding consumer market, projected to reach $4 trillion by 2030.
The Axis Consumption Fund aims to invest in companies driving this sector’s growth, extending beyond traditional fast-moving consumer goods (FMCG) to include various segments such as automobiles, consumer durables, telecommunication, and consumer services.
Key Drivers of Consumption Growth
Several factors are fueling this expansion:
- Rising Per Capita Income: Increased earnings empower consumers to spend more across diverse segments.
- Favorable Demographics: A younger, larger working-age population is enhancing consumption patterns.
- Urbanization: Growing urban populations are shifting consumption from essentials to lifestyle products.
- Premiumization: Aspirations for upgraded lifestyles are leading to increased demand for premium products.
- Digitalization: Convenient purchasing and payment options, including UPI and credit cards, are simplifying consumption.
- Easy Credit: Access to credit facilities is facilitating larger purchases.
Changing Consumer Preferences
Indian consumers are evolving their spending habits:
- Foodscape: A shift from home-cooked meals to dining at restaurants and ready-to-eat packaged foods.
- Fashion: A growing inclination towards branded and luxury clothing.
- Home Landscape: Increasing demand for larger homes with added amenities.
- Mobility: Preference is shifting towards hybrid and electric vehicles and feature-rich SUVs.
Investment Strategy
The Axis Consumption Fund will actively manage investments across various market capitalizations, focusing on quality companies within the consumption sector. The fund is positioned to benefit from both emerging and established trends in consumer behavior.
Fund Details:
- Benchmark: Nifty India Consumption TRI
- Fund Managers: Mr. Hitesh Das, Mr. Shreyash Devalkar, and Ms. Krishnaa Narayan (for foreign securities)
- Minimum Application Amount: ₹100, with multiples of ₹1 thereafter
- Exit Load: Nil if redeemed/switched after 12 months; 1% for remaining investments if redeemed/switched within 12 months.
The NFO period for the Axis Consumption Fund runs from August 23 to September 6, 2024. For more information, including detailed asset allocation and investment strategies, investors can refer to the Scheme Information Document available on the Axis Mutual Fund website.
This fund seeks to harness the broad-based growth in India’s consumer market, reflecting an evolving consumption landscape driven by economic and demographic shifts.
