Kotak Mutual Fund launches Kotak Consumption Fund: Here are the key details

Kotak Mahindra Asset Management Company Ltd today announced the launch of the Kotak Consumption Fund, an open-ended scheme that will invest in equity and equity-related securities of companies engaged in consumption and consumption-related activities. The scheme opens for subscription on October 25 and closes on November 8.

The fund will offer investors an opportunity to invest in India’s consumption potential, which is being driven by the trinity of structural, cultural and digital factors. The structural growth is led by a shift towards organised markets due to urbanisation and rising incomes. Increasing discretionary spending due to the rise of nuclear and aspirational families creates a cultural influence, leading to higher consumption. This is further propelled by a digital impact leading to a surge in online shopping and internet usage.

With Kotak Consumption Fund, KMAMC aims to offer long-term capital growth by investing in companies actively involved in this dynamic sector, providing investors with a pathway to diversification and capital appreciation. The fund will invest in sectors/industries like Fast Moving Consumer Goods, Financial Services, Automobiles and Auto Components, Consumer Durables, Telecommunication, Consumer Services, Health Care, Power, Realty and Textiles etc., which form the Consumption universe based on the investment strategy of the scheme.

Nilesh Shah, Managing Director, KMAMC, said, “With the launch of Kotak Consumption Fund, we are offering a window for our investors to be a part of the country’s fast-evolving consumption story. It's about tapping into the shift from basic to smart - from analogue to digital, feature phones to smartphones, and single-brand to multi-brand retail choices. This change reflects not just a change in buying capacity but also a shift in aspirations. We offer this fund for our investors who want to be a part of the country’s growing consumption story and are looking for resilient sectors.”

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The fund will be managed by Devender Singhal, who has been with Kotak Mahindra AMC for over 15 years and has deep insights into the Consumer, Auto and Media segments.

According to Devender Singhal, EVP, KMAMC, “Country’s consumption story is still unfolding. Our country's rising income, strong digital revolution, unique demographic makeup, and changing consumer trends drive consumption potential. The Kotak Consumption Fund offers investors an avenue to participate in our nation's aspirations, targeting investments in the opportunities within the resilient consumption sector.”

The scheme opens for public subscription on October 25, 2023, and closes on November 8, 2023. Investors can invest a minimum amount of Rs 5,000 and subsequently in multiples of Re.1 for purchase and Re 0.01 for switches during the NFO period.

Investors should consult their financial experts and tax advisors if in doubt about whether the product is suitable for them. Kotak Mahindra Asset Management Company Limited (KAMAMC) is not guaranteeing or promising any returns/ futuristic returns.