PNB MetLife India Insurance Company has introduced a new investment opportunity called Bharat Consumption Fund as part of its Unit Linked Insurance Plan (ULIP) offerings. The new fund opened for subscription today and will close on November 28, 2024, with an initial unit price of Rs 10.

The Bharat Consumption Fund is accessible through PNB MetLife’s ULIP plans, such as Goal Ensuring Multiplier and Smart Platinum Plus, which offer life insurance cover and flexible investment choices available online. The fund allows policyholders to tap India’s growing consumer market, which is expected to rank third in the world at $4 trillion by 2030.

The fund will actively manage investments in companies across Indian consumer sectors, in line with the Nifty India Consumption Index, which has performed better than the Nifty 50. Returns are not guaranteed as they are market linked. However, the fund strives to achieve consistent value through strategic portfolio management.

With an estimated 22% share of the global working-age population by 2030, India is expected to drive demand across various sectors, including consumer goods, personal care and e-commerce, driven by growth in its consumption.

“The Bharat Consumption Fund provides our clients with the opportunity to invest in India’s economic growth,” said Sanjay Kumar, Chief Investment Officer at PNB MetLife.

Kumar said the fund focuses on long-term risk-adjusted returns through a diversified portfolio.

Thematic funds are equity mutual funds that focus on investing in stocks related to a specific theme or idea. Unlike sector funds, thematic funds are more diversified and select companies and sectors sharing a common theme.

However, the selected sectors included in the portfolio may limit the overall diversification of the fund. Thematic funds are therefore considered high-risk investments, as their returns are closely linked to the success of the chosen theme.

These funds are generally recommended for aggressive investors, with a suggested exposure of no more than 10% of your overall portfolio. They feature high-conviction portfolios, in which fund managers make significant investments in selected stocks.

To manage risk, thematic funds invest in companies of all sizes and across various sectors. They are particularly suitable in times of market polarization, where only a few stocks generate overall returns.

Some of the existing consumer funds are:
SBI Consumer Opportunities Fund
Fund size: Rs 3,015 crore
Yield (pa): +27.22%

Nippon India Consumer Fund
Fund size: Rs 2,073 Crs
Yield (pa): +25.63%

Tata India Consumer Fund
Fund size: Rs 2,375 Crs
Yield (pa): +24.63%

Mirae Asset Consumer Fund
Fund size: Rs 4,118 Crs
Yield (pa): +24.19%

ICICI Bharat Prudential Consumer Fund
Fund size: Rs 3,161 Crs
Yield (pa): +23.38%

Canara Robeco Consumer Trends Fund
Fund size: Rs 1,747 Crs
Yield (pa): +23.12%

Baroda Consumer Fund BNP Paribas India
Fund size: Rs 1,447 Crs
Yield (pa): +22.61%

Mahindra Manulife Consumer Fund
Fund size: Rs 397 Crs
Yield (pa): +22.20%

Sundaram Consumer Fund
Fund size: Rs 1,564 Crs
Yield (pa): +22.02%

Sun Life GenNext Aditya Birla Fund India
Fund size: Rs 5,854 Crs
Yield (pa): +21.42%

UTI Consumer Fund India
Fund size: Rs 709 Crs
Yield (pa): +18.86%

Axis Consumer Fund
Fund size: Rs 4,303 Crs
Return (pa): NA

HDFC Consumer Non-Cyclical Fund
Fund size: Rs 884 Crs
Return (pa): NA

Kotak Consumer Fund
Fund size: Rs 1,071 Crs
Return (pa): NA

Quant Consumption Fund
Fund size: Rs 336 Crs