New NFO Alert: Edelweiss Consumption Fund NFO Review

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Are you a believer that what you invest in always matters? If yes, then the newly launched Edelweiss Consumption Fund NFO is just what you need. Built on the motto, "Click, Swipe, Consume," this latest NFO by the Edelweiss mutual fund has started its subscription on 31st January and will close on 14th February 2025.

This analysis explores why it could be the best NFO in the consumption funds to date and will likewise give you multiple reasons to understand why the consumption theme is on the rise. Let's get started.

Trending Read: Union Budget 2025-26 Market Analysis

Starting with the most asked question, what is it? Read on to find out.

Why India's Consumption Booming?

As you enter the new fiscal year 2025, India stands out amongst the top and fastest-growing consumer markets.

With more than 1.4 billion India's population and a growing middle class, the way people in the country are consuming goods and services is changing faster than ever.

Global data shows that India is second in the world for consumer market growth, ahead of big economies like the U.S., Indonesia and Brazil. From 2012 to 2022, India’s consumer base grew by 46%, reaching 77.3 crore consumers. This growth was faster than China’s 15% increase during the same time.

Buckle up to simplify the investing strategy that the Edelweiss consumption fund NFO will follow.

Investment strategy adopted by Edelweiss Consumption Fund NFO

This new fund offer by Edelweiss Mutual Fund uses a unique investment style called "FAIR." This process helps identify robust and clean businesses that are available at acceptable prices without being biased toward either value or growth investing styles. The FAIR stands for:

F- Forensics

A- Acceptable Returns

I- Investment Style Agnostic

R- Robustness

Overall, risk management is the core investing strategy at each level of the investment process. This liability will encourage the Edelweiss Consumption Fund to deliver high returns, making it a good investment choice for 2025.

Edelweiss Consumption Fund NFO Basic Details

Here are the key details that you need to know about this newly launched NFO 2025:

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Portfolio Strategy of Edelweiss Consumption Fund NFO

The newly launched Edelweiss Consumption Fund NFO adopts an investment style agnostic approach meaning flexible investing while focusing on businesses that are either established quality leaders, high-growth companies or compelling value opportunities. The below picture gives more clarity on the subject:

Moreover, this New Fund Offer will focus on India's diverse consumption landscape, investing across three types of sectors, which are:

Core Consumption: It invests in businesses with consistent demand, such as FMCG, retail, pharma and consumer durables, making consistent compounders and allowing investors to make high returns.

A great example of a core consumption company is Britannia Industries Limited, one of the leading food companies in India with a 100-year legacy. It leads the biscuit market with a 34% share, delivering a CAGR of 27.9% with services across 45,000 villages and adding 22 new products in FY24.

The graph below shows you the sales and distribution of rural and direct reach:

Emerging Consumption: It targets ongoing trends like digital consumption, e-commerce, health and wellness and premiumization to generate high alpha returns and opportunities by investing in this new NFO.

Trent Limited is a good example of an emerging business. It has a diverse brand portfolio, including top brands like Zudio, Westside, Zara, Massimo Dutti, Star Bazaar, etc., generating 39% CAGR and 12,669 Crore revenue in the financial year 2024.

Check out the below graph, that represents the rapid store expansion of the top emerging companies:

Cyclical Consumption: Investing in companies in sectors influenced by economic cycles, such as real estate, automobiles and the hotel industry.

The Indian Hotels Company Limited (IHCL) now runs 232 hotels and plans 118 more. This growth reflects the booming hotel industry in India, which adds Rs.1 trillion to the country's economy. IHCL has seen a big rise in revenue, with its room rates increasing by 61%, which is much higher than the overall industry growth of 39%.

Likewise, TVS Motor Company Limited became the fourth largest 2-wheeler manufacturer globally, with a presence in 80+ countries. It leads the market in the EV sector, supporting green energy for a sustainable India. It holds a 12.5% market share in the electric scooter category and sold 1.45 lakh units in FY24, reflecting 300% growth.

Look at the table below to know the revenue it earned:

Pro Tip: 3 easy steps via SIP Calculator and voila, you know your returns for free.

Key Consumption Sectors Performance

Here is the performance of the key sectors of consumption:

Portfolio Allocation of Edelweiss Consumption Fund NFO

The Edelweiss Consumption Fund NFO invests in equity schemes with a focus on companies engaged in the consumption sector that strive to benefit from India's rising consumer demand:

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Fund Managers of Edelweiss Consumption Fund NFO

It is time to talk about the Mutual Funds manager responsible for handling the Edelweiss Consumption Fund NFO:

Mr. Dhruv Bhatia

Dhruv Bhatia has over 12 years of experience in the stock market. He joined Edelweiss in October 2024 and focuses on managing small and mid-cap funds. He has previously worked with Bank of India Investment Managers and AUM Fund Advisors.

Mr. Trideep Bhattacharya

Trideep Bhattacharya has 15+ years of experience in investing. He holds degrees from IIT and an MBA in Finance. He has worked with top firms like Axis Asset Management and Motilal Oswal. At Edelweiss, he manages funds like Edelweiss Flexi Cap Fund and Edelweiss Large & Mid Cap Fund.

Mr. Amit Vora

Amit Vora has 16+ years of experience in finance and oversees foreign investments at Edelweiss. He has worked with firms like Antique Stock Broking and D.E. Shaw. He manages Edelweiss multi cap fund and Edelweiss multi asset funds.

Who Should Invest in Edelweiss Consumption Fund NFO 2025?

The Edelweiss Consumption Fund NFO is suitable for investors who:

• Plan to invest for at least 5 years.
• This could be the best NFO 2025 if you want to benefit from India’s growing consumer market.
• Are comfortable with high risk for the chance of higher returns.
• If you want to invest in companies that grow with India’s economy.

Proven Record of Last 4 NFOs in Equity Funds Category

Here are the 4 best performing mutual funds of Edelweiss Mutual Fund in the equity category:

It’s time to wrap up the analysis for this newly launched Edelweiss consumption fund NFO.

To Conclude on Edelweiss Consumption Fund NFO 2025

In short, the latest Edelweiss Consumption Fund NFO under the consumption mutual funds gives you an amazing opportunity to invest in consumer-focused sectors like consumer staples, FMCG (Fast-moving consumer goods), consumer durables and many others, which offer demographic advantages to tap into India's rising consumer trends.

It is time to stay ahead in your finances by planning strategic investments through SIP (Systematic Investment Plan) and gain maximum returns from India's growing day-by-day economy.