NFO Update: Bank Of India Mutual Fund Launches Consumption Fund

Bank of India Mutual Fund launches the Bank of India Consumption Fund through a New Fund Offer (NFO). This open-ended equity scheme focuses on sectors benefiting from the growth of India’s consumption-driven economy and rising consumer demand.

NFO Details

The New Fund Offer (NFO) opens for subscription on November 29, 2024, and closes on December 13, 2024. The scheme requires a minimum application amount of Rs. 5,000 and in multiples of Re. 1 thereafter, while additional purchases can be made for a minimum of Rs. 1,000. Classified under the very high-risk category, both the scheme and its benchmark reflect the potential for significant returns in the long term.

According to the Bank of India Consumption Fund, it seeks to leverage India’s growing consumption-driven economy, propelled by a rising middle class, urbanization, and a young demographic. The fund focuses on sectors like retail, consumer durables, healthcare, and financial services to align with changing consumer habits and increasing disposable incomes.

Alok Singh, CIO of Bank of India Investment Managers, said, “The growing Indian economy is helping to increase per capita GDP, which generates higher disposable income. The growing income levels are resulting in higher discretionary spending and an increase in financial savings. This changing spending pattern has an influence on many businesses and may also result in the creation of newer profit pools. Bank of India Consumption Fund looks to capitalize on the increasing discretionary spending by Indian consumers.”

Mohit Bhatia, CEO of Bank of India Investment Managers, added, “We have always endeavoured to offer sustainable investment constructs focused on long-term wealth creation for our investors. This new offering focuses on a broad theme that has traditionally comprised the core allocation for most diversified schemes and yet has an ever evolving and broad array of industries and themes that comprise the rapidly growing consumer basket of Indian households. We feel that this is ideal for investors looking for broad thematic exposure across an equity portfolio with a time horizon of three years and above.”

Who Should Invest?

The Bank of India Consumption Fund suggests that this fund is suitable for investors looking to make long-term capital gains by funding industries that profit from India's expanding consumer market. It is especially well-suited for people who can take on a lot of risk and want to take advantage of the nation's changing demographics and consumption trends.