#LICMutualFund #ConsumptionFund #NFO #ThematicFunds #MutualFundIndia #EquityInvestment #IndiaConsumption #LongTermGrowth #SumitBhatnagar #KaranDoshi
Mumbai: LIC Mutual Fund has introduced a new thematic equity scheme called the LIC MF Consumption Fund, designed to tap into India’s rapidly evolving consumption economy. The New Fund Offer (NFO) opened on October 31, 2025, and will remain active until November 14, 2025. Investors can apply with a minimum investment of ₹5,000, followed by multiples of ₹1, making this scheme accessible to both retail and seasoned investors. The scheme will reopen for continuous sale and repurchase from November 25, 2025, allowing investors to buy and redeem units regularly.
The fund will be managed by experienced fund managers Sumit Bhatnagar and Karan Doshi and benchmarked against the Nifty India Consumption Total Return Index (TRI). It aims to achieve long-term capital appreciation by investing 80 to 100 percent of its assets in the equity and equity-related instruments of companies that stand to benefit from the growth in domestic consumption. Up to 20 percent of the fund’s assets may be invested outside the consumption theme to provide diversification and flexibility.
This initiative aligns with the strengthening of India’s consumption landscape, fueled by rising incomes, increasing urbanization, digital adoption, and demographic advantages. The fund seeks investment opportunities across different market capitalizations, aiming to capitalize on sectors like consumer durables, retail, personal care, and digital services, which are expected to grow significantly over the coming years.
LIC Mutual Fund, sponsored by the Life Insurance Corporation of India, manages a diversified portfolio including equity, debt, hybrid, and passive funds, and this new offering adds a focused approach for investors keen to participate in India’s consumer growth story.
Investment Options and Flexibility
During the NFO phase, interested investors can invest in the fund through lump sum amounts with a minimum of ₹5,000. LIC MF Consumption Fund also offers systematic investment plans (SIPs) with minimum amounts of ₹100 daily, ₹200 monthly, and ₹1,000 quarterly, facilitating disciplined investment habits among investors of varied financial capacities.
The scheme offers the potential benefits of thematic investing, which allows investors to directly participate in sectors expected to outperform the broader market due to structural growth trends. However, the fund house advises that there is no assurance of achieving investment objectives, and prospective investors should consider their risk tolerance and investment horizon.
Economic Drivers Behind the Fund
India’s consumption economy is rapidly undergoing transformation, supported by key macroeconomic drivers. Rising disposable incomes among the expanding middle class, accelerated urban lifestyle changes, deeper internet penetration, and demographic factors like a young population are creating robust demand across consumer sectors.
The LIC MF Consumption Fund positions itself as an investment gateway to this expansive opportunity universe, focusing on companies that directly or indirectly benefit from increased consumer spending and lifestyle shifts. The consumption theme may include sectors such as fast-moving consumer goods (FMCG), consumer electronics, automobiles, healthcare, financial services oriented towards consumers, and the burgeoning digital ecosystem.
Fund Management and Benchmark
Sumit Bhatnagar and Karan Doshi bring their expertise to managing the fund, applying a disciplined investment process aimed at selecting stocks with strong growth potential within the consumption space. The fund’s performance will be measured against the Nifty India Consumption Total Return Index (TRI), providing investors with a relevant benchmark reflecting the sectoral opportunities targeted by this scheme.
LIC Mutual Fund underscores the importance of a thematic investment philosophy that goes beyond traditional diversification by focusing on structural growth themes shaping the Indian economy.
Outlook and Investor Considerations
As India’s consumption sector expands at a swift pace, investors looking to participate in this growth story now have access to a dedicated fund tailored to capture the sector’s long-term potential. The launch of LIC MF Consumption Fund reflects increasing investor interest in thematic funds that concentrate on specific economic drivers rather than broad market indexes.
While thematic funds like this offer exciting growth possibilities, potential investors should carefully analyze their goals, investment horizon, and risk appetite. Mutual funds carry inherent market risks, and the success of a thematic fund depends on the sustained performance of the underlying sectors it invests in.
With rising consumer demand set to continue shaping the Indian market landscape, the LIC MF Consumption Fund aims to provide a focused yet flexible investment option directed by expert fund managers supported by LIC Mutual Fund’s robust operational infrastructure.
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