A consumption-themed mutual fund invests primarily in companies benefiting from consumer spending and lifestyle trends. Such funds can target businesses across various sectors – retail, food and beverages, travel, technology, healthcare, etc – that cater to consumer needs and benefit from consumer spending.
The Bajaj Finserv Consumption Fund comes at a time when the consumption sector in India is growing rapidly and is projected to experience a boom. The rise in domestic demand will be spurred by a rapidly growing middle class, increasing per-capita income, growing disposable incomes, and technological advancements that have made purchasing quicker and more convenient.
Investment strategy
The Bajaj Finserv Consumption Fund follows a megatrends approach. Megatrends are large, significant, and sweeping shifts that influence economies, societies, and geographies.
These trends tend to have lasting impact, and investing in them early on offers significant long-term growth potential. You can also invest in the Bajaj Finserv Consumption Fund online or offline through Bajaj Finserv AMC, our Registrar and Transfer Agent KFintech, registered mutual fund distributors, and aggregator platforms. Investments (both lumpsum and SIP) start at Rs. 500. You can also use tools such as a compounding interest calculator for help in planning your investments.
Advantages of Bajaj Finserv Consumption Fund
- Offers opportunity to growth with India’s consumption sector: The fund seeks to offer long-term growth potential by investing in companies poised to benefit from India’s projected consumption boom.
- Captures evolving consumption megatrends: Aims to identify and invest in emerging businesses that may benefit from long-term shifts in consumer behaviour.
- Exposure to all market caps: The fund can invest across large, mid, and small-cap companies based on potential opportunities and the fund manager’s strategy.
Bajaj Finserv Consumption Fund - Regular & Direct Plans
When you invest in the Bajaj Finserv Consumption Fund, you can choose between two types of plans: Direct Plan and Regular Plan.
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Direct Plan: This plan is suitable for investors who prefer to invest on their own, without involving a distributor. The expense ratio is lower for this plan because the AMC does not have to pay a distributor commission. Over time, a lower expense ratio can result in slightly higher potential net returns.
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Regular Plan: Here, you invest through a distributor who assists you with scheme selection and application. In return, the fund charges a higher expense ratio to pass on to distributors as a commission. However, the involvement of a distributor helps investors get tailored fund recommendations based on their goals and risk profile. A distributor also helps with investments, redemptions and all other mutual fund transactions.
How to invest in Bajaj Finserv Consumption Fund
You can invest in Bajaj Finserv Consumption Fund either online or offline.
Offline Mode: By filling out an application form and submitting it to the AMC's official point of acceptance (OPAT).
Online Mode: You can invest through your Demat or online trading account. You can also go to Bajaj Finserv AMC’s investor portal and create an online account to invest. Click here to invest now.
Taxation on Bajaj Finserv Consumption Fund
Bajaj Finserv Consumption Fund is an equity mutual fund, so it follows the tax rules applicable to equity-oriented schemes. The tax you pay depends on how long you stay invested.
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Short-term capital gains (STCG):
If you redeem your units in less than a year of purchase, all profits are classified as short-term gains and taxed at 20%, along with applicable surcharge and cess.
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Long-term capital gains (LTCG):
If you stay invested for more than a year, your profits are considered long-term capital gains. Gains up to ₹1.25 lakh in a financial year are exempt from tax. Thereon, they are taxed at 12.5%, plus surcharge and cess as applicable.
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