Edelweiss Mutual Funds Filed a Draft for Edelweiss Consumption Fund With SEBI

Edelweiss Mutual Fund is entering the consumption-focused investment space with its new Edelweiss Consumption Fund, which recently filed for approval with the Securities and Exchange Board of India (SEBI). The fund will tap into India’s expanding consumer market by targeting companies within key consumption-driven sectors. As an open-ended equity scheme, it focuses on companies that show a consumption boom, aiming for long-term capital growth.

What’s in the Fund?

This isn’t the run-of-the-mill equity fund. The Edelweiss Consumption Fund plans to park 80-100% of its assets in companies that mirror the heart of India’s consumer spending — think consumer durables, telecom, and even automotive giants. The benchmark here is the NIFTY India Consumption TRI, an index that tracks around 50 top companies thriving on India’s love for all things consumable. The minimum investment starts at just Rs.100 during the NFO period, so it’s accessible without putting too much on the line.

Why Go Consumption-Heavy?

India’s consumption economy is projected to hit around $6 trillion by 2030 — yes, trillion. With urbanization on the rise and a growing middle class ready to spend, sectors like FMCG and telecom are looking at an estimated 9.1% growth annually. The fund is betting big on companies ready to capture this surge, targeting consistent performers in sectors often shielded from extreme volatility.

Some Key Numbers

• Benchmark: NIFTY India Consumption TRI (with a 3-year CAGR of 12.6%).
• Liquidity: Daily purchase and redemption, NAV updated by 10 a.m.
• Exit Load: 1% if redeemed within 90 days; zero after that.
• Expense Ratio: Capped at 2.25% of daily net assets.

Conclusion: The Edelweiss Consumption Fund offers an opportunity to invest in India’s consumption growth, with the potential to deliver long-term returns. By tapping into core sectors, this fund will capture India’s projected $6 trillion consumption market by 2030. For investors looking to align with this growth story, the fund could be appealing, though it’s essential to weigh the potential volatility and specific exposure to consumption-driven sectors. 

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.