Over the last decade, excluding food, private consumption growth has been higher owing to low-interest rates and easy access to consumer credit, which have been the twin factors driving rapid growth in domestic consumption
ICICI Prudential Mutual Fund today launched ICICI Prudential Bharat Consumption Scheme, which will remain open for subscription until April 9, a statement from the fund house said.
The scheme aims to benefit from the Indian consumption story, considered as one of the fastest growing consumption markets globally.
Over the last decade, excluding food, private consumption growth has been higher owing to low-interest rates and easy access to consumer credit, which have been the twin factors driving rapid growth in domestic consumption.
Moreover, it has been observed that marginal propensity to consume food tends to decline as income level increases.
Commenting on the launch, Nimesh Shah, Managing Director and Chief Executive Officer, ICICI Prudential Mutual Fund said, "Globally, it has been observed that the moment a country’s per capita GDP crosses $2,000, there is a disproportionate rise in discretionary spending and India is poised to cross this milestone in 2019-20.”
He further added, "With the largest millennial population globally, India offers growth potential for consumer markets and retailers as millennials differ from previous generations by their lifestyle choices, consumption pattern, a significant need for convenience and brand preferences."
Going forward, the primary drivers for consumption are likely to be rising income and expansion of the middle-income segment, the diverse population within India-increasing urbanization, and improved connectivity owing to technology advancement, according to the press release.
With the rising aspirations of the millennials which goes with the moto of eat well (FMCG, Retail, Quick service restaurants, Healthcare), feel well (Consumer Durables, Telecom, Media & entertainment, Auto) and live well (Consumer Electricals, Paints, Tourism), consumption as a theme is likely to see exponential growth in the times ahead, the fund house stated in its press release.
Plans: Regular and direct
Options: Growth and dividend
Minimum investment: Rs 5,000 and in multiples of one rupee thereafter
Exit load: 1 percent if investments are redeemed within 12 months from the date of allotment
Performance benchmark: Nifty India Consumption Index
Fund Managers: Rajat Chandak and Dharmesh KakkadPriyanka Khandelwal (For overseas investments)Not sure which mutual funds to buy? Download moneycontrol transact app to get personalised investment recommendations.