Zee Business Managing Editor Anil Singhvi, in his special program ‘Mutual Funds ki Masterclass’ (a masterclass of mutual funds), has handpicked the top fund and the NFO of the month. Singhvi has recommended investing in consumption theme funds following the central government’s Goods and Services Tax (GST) 2.0 reform.
The incoming GST cuts — set to come into force on September 22 — are expected to boost consumption funds. These funds can be viewed as sectoral or thematic funds that invest in companies related to consumption businesses like FMCG, food products, digital platforms (like Zomato and Swiggy), and household goods. With a direct connection to India’s consumption and economic growth, these funds can be a strategic pick, according to the market wizard.
Recommended Consumption Funds:
1) HDFC Non-Cyclical Consumer Fund: Anil Singhvi’s Fund of the Month
Other options include:
Add Zee Business as a Preferred Source
2) SBI Consumption Opportunities Fund
3) Kotak Consumption Fund
4) Aditya Birla Sun Life Consumption Fund
NFO Corner:
A New Fund Offer (NFO) is the initial offering period for a brand-new mutual fund scheme, where an Asset Management Company (AMC) raises capital from investors at a fixed price (often Rs 10 per unit) to build the fund’s portfolio.
After the limited NFO period, the fund reopens for investors to buy units at the prevailing Net Asset Value (NAV), which fluctuates with the market and the fund’s performance.
Recommended NFOs:
1) Union Diversified Equity Fund:
An open-ended active Fund of Funds (FoF) with dynamic allocation across large, mid, and small caps. Open till September 15, minimum investment of Rs 1,000. Benchmark BSE 500 TRI.
2) Baroda BNP Paribas Business Conglomerates Fund:
A sectoral/thematic fund focusing on conglomerates. Open till September 15, minimum investment of Rs 500. Benchmark- BSE India sectors Leader TRI.
3) Bandhan BSE India Sector Leaders Index Fund:
A passive index fund. Open till September 17, minimum investment of Rs 1,000. Benchmark- BSE India sectors Leader TRI.
Singhvi has recommended Bandhan BSE India Sector Leaders Index Fund as NFO of the month.