ICICI Prudential AMC is offering a close-ended fund, Bharat Consumption Fund Series I, for subscription to the public. The fund, as the name suggests, will invest in the fast-growing consumption sector in India.
ICICI Prudential Bharat Consumption Fund Series 1, a ~3.5 years close ended equity fund, aims to benefit from consumption themes that include businesses like Consumer Non-Durable, Consumer Durable, Auto, Healthcare Services, etc.
Why the Consumption theme?
– It took India only ~7 years to leap from 1 Trillion to a 2 Trillion economy
– India with its 1.25 billion population enjoys a demographic advantage with proportion of working age population over 50%, makes Consumption a structural story for sustainable period
– India’s per capita GDP has seen significant growth in last decade and had reached to level of approx. $7000.
– Government’s focus to improve rural income through rural focussed initiatives, can further aid the consumption theme
– The proportion of nuclear households, which has been on the rise during the past two decades, is projected to increase to 74% by 2025.
Data Source: IMF
The New Fund Offer of ICICI Prudential Bharat Consumption Fund starts from March 22, 2018 and closes on April 5, 2018. The Scheme is a ~3.5 year close-ended equity scheme that aims to provide capital appreciation by investing in well-diversified portfolio of stocks that could benefit from growth in consumption and related activities.
This Scheme will be managed by CIO, Mr. Sankaran Naren and Mr. Atul Patel.
Speaking on the occasion, Mr. Nimesh Shah, MD & CEO, ICICI Prudential Asset Management Company Ltd. said, “With significant rise in consumer spending in sectors like consumer durable and non-durable, auto and healthcare services, coupled with government’s focus on reforms; India has positioned itself as one of the fastest rising consumer markets. Through this Scheme investors can benefit from the increase in consumer spending owing to large proportion of working age population over 50%.”
ICI Prudential Mutual Fund launches ICICI Prudential Bharat Consumption Fund – Series 1
NFO Period: 22nd March, 2018 to 5th April, 2018
