LIC Mutual Fund Launches New Thematic Equity Scheme Focused on India's Consumption Growth

LIC Mutual Fund has introduced a new thematic equity scheme, the LIC MF Consumption Fund, designed to capitalize on India's expanding consumption landscape. The fund seeks to achieve long-term capital appreciation by investing 80-100% of its assets in equity and equity-related instruments of companies poised to benefit from domestic consumption growth. Up to 20% of assets can be invested outside the primary consumption theme, with flexibility across market capitalisations.

The New Fund Offer (NFO) period for investors to subscribe is from October 31 to November 14. The scheme will reopen for continuous sale and repurchase from November 25, 2025. The minimum investment during the NFO is ₹5,000, with options for Systematic Investment Plans (SIPs) starting from ₹100 daily. The fund will be managed by Sumit Bhatnagar and Karan Doshi and benchmarked against the Nifty India Consumption Total Return Index (TRI).

LIC Mutual Fund stated that the launch aligns with India's evolving consumption patterns, driven by factors such as rising incomes, urbanization, digital adoption, and demographic strength. The fund house has clarified that there is no assurance of achieving the investment objective.

Impact: This launch is likely to attract investor interest towards companies within the consumption and allied sectors. It could lead to increased capital inflows into these segments of the Indian stock market, potentially boosting trading volumes and influencing stock prices of companies benefiting from domestic demand. The fund's strategy to tap into India's consumption story makes it a noteworthy development for investors tracking economic growth themes. Rating: 6/10

Difficult Terms: * **New Fund Offer (NFO)**: The period during which a new mutual fund scheme is open for subscription to investors before it is officially launched and available for continuous buying and selling. * **Equity**: Ownership in a company, typically represented by shares. * **Equity-related instruments**: Investments such as stocks, equity derivatives, or funds that primarily invest in equities. * **Market Capitalisation**: The total market value of a company's outstanding shares, calculated by multiplying the current share price by the number of outstanding shares. * **Systematic Investment Plan (SIP)**: A method of investing a fixed amount of money in a mutual fund scheme at regular intervals (e.g., monthly, quarterly). * **Benchmark Index**: An index used as a standard to measure the performance of an investment portfolio or fund (e.g., Nifty India Consumption TRI). * **Total Return Index (TRI)**: An index that measures both the capital appreciation of its constituents and the reinvestment of dividends.