Edelweiss MF launches thematic consumption fund for long-term growth

'Fund's sectoral and thematic exposure will be aligned with India's economic resilience and evolving consumer preferences,' says company

Edelweiss Asset Management Limited (EAMC) has launched a new fund that will target India's “rapidly expanding consumer market” for returns, said the fund house.

 

Edelweiss Consumption Fund opened for subscription on Friday and will be open till to February 14.

 

Key highlights:

 

The fund aims to taps India’s projected $4.3 trillion consumer spending by 2030.

 

It follows a “style-agnostic” investment approach, focusing on quality leaders, growth champions, and value-driven opportunities.

 

“The recent market corrections offer attractive entry points, as consumption stock prices have corrected meaningfully,” said EAMC.

 

Investment strategy

 

Edelweiss Consumption Fund is designed to generate long-term capital appreciation by investing in equity and equity-related securities of companies engaged in consumption-driven sectors. This includes businesses such as fast-moving consumer goods, consumer durables, health care and education.

 

“Ranked among the top two consumer markets worldwide, India’s consumption story is poised for exponential growth. Driven by rising disposable incomes, urbanisation, digitalisation, easy credit, and a youthful demographic dividend, consumer businesses are set to thrive. The Edelweiss Consumption Fund aims to capitalize on this multi-decade opportunity,” said Radhika Gupta, managing director and chief executive officer, Edelweiss Mutual Fund.

 

The fund employs a diversified investment strategy and follows a sectoral and thematic exposure aligned with India's evolving consumer landscape. Its investment strategy is centered on:

 

Quality leaders: Established businesses with strong market positions.

 

Growth champions: Companies with high potential for revenue and profit expansion.

 

Value picks: Stocks trading at attractive valuations relative to their growth prospects.

 

Objective of scheme: The fund seeks to generate long-term capital appreciation by investing predominantly in equity and equity related securities with a focus on companies engaged in consumption and consumption related sectors or allied sectors. “There is no assurance that the investment objective of the scheme will be achieved,” said the fund house.

 

Benchmark: It will be benchmarked against NIFTY India Consumption TRI.

 

Exit load: If the units are redeemed /switched out on or before 90 days from the date of allotment – 1 per cent of the applicable NAV.

 

If the units are redeemed /switched out after 90 days from the date of allotment no exit load is applicable.

 

EAMS said it reserves the right to revise the load structure from time to time. Such changes will become effective prospectively from the date such changes are incorporated.

 

Minimum investment: The fund is accessible to a wide range of investors with a minimum investment amount of Rs. 100.

 

Fund manager: The fund will be managed by Dhruv Bhatia, Trideep Bhattacharya, and Amit Vora.

 

Who should invest?

 

The scheme is suitable for investors seeking to diversify their portfolios with an equity investment option focused on India's consumption theme.