Bank of India Consumption Fund Filed with SEBI: Tapping into India’s Consumption Growth!

Introduction

Bank of India Mutual Fund has introduced its latest offering—the Bank of India Consumption Fund. This open-ended equity scheme focuses on capturing growth opportunities in India’s booming consumption-driven sectors. The fund has already been filed with SEBI, aligning with its thematic approach to offer long-term capital appreciation by investing in companies engaged in consumption and allied sectors.

Key Features of the Scheme

Scheme Name:
Bank of India Consumption Fund

Fund Category:
Thematic Fund (Consumption Theme)

Benchmark Index:
Nifty India Consumption TRI

Fund Manager:
Mr. Nitin Gosar, with over 16 years of experience in equity research and fund management.

Investment Objective

The fund aims to provide long-term capital appreciation by actively managing a diversified portfolio of companies engaged in India’s consumption and consumption-related sectors. However, there is no guarantee that the investment objective will be achieved.

Asset Allocation

The scheme will follow a disciplined asset allocation strategy, focusing primarily on equity:

• Equity and Equity-Related Instruments in Consumption Sector: 80%-100%
• Other Equity Instruments: 0%-20%
• Debt and Money Market Instruments: 0%-20%
• Units of REITs and InvITs: 0%-10%

Investment Philosophy

The fund will take a bottom-up approach to stock picking, focusing on companies that benefit from India’s growing consumption trends, narrowing the gap between rural and urban spending, and increasing the shift from unorganized to organized sectors. The Fund Manager will emphasize companies with robust corporate management, good growth prospects, and sound financials.

Plans and Options

The scheme offers two plans:

• Direct Plan
• Regular Plan

Both plans have the following options:

• Growth
• Income Distribution cum Capital Withdrawal (IDCW)

Minimum Investment and Charges

• Minimum Application Amount: Rs 5,000 during NFO
• Exit Load: No exit load for up to 10% of the units allotted. A 1% exit load is charged for redemption within three months for units exceeding 10%.

Why Invest?

This fund is suitable for investors seeking long-term capital appreciation through exposure to India’s consumption theme. By investing in consumption-related sectors, this thematic fund taps into one of India’s strongest growth stories.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.