Kotak Mahindra Asset Management Company Ltd today announced and 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 Customer 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 organized markets due to urbanization 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.