Newly Launched ITI Bharat Consumption Fund NFO by ITI Mutual Fund
In the Union budget 2025-26, the consumption sector is given a lot of emphasis; taking this as an opportunity, the ITI Bharat Consumption Fund by the ITI Mutual Fund, part of the IT group of companies and supported by the Investment Trust of India Limited, is a newly launched NFO 2025 circling the consumption theme.
This latest NFO was started on 6th February and will close its subscription on 20th February 2025.
This analysis explores why this could be the best NFO in consumption funds, investing in daily goods and services in the FMCS, automobiles, retail, and many other booming sectors of India.
Now, without any further dues, let's take a quick glance at the ITI AMC (Asset Management Company).
ITI AMC at a Glance
Here is a table that covers the key information on ITI Mutual Fund that you should know:
| Particulars | Mar-23 | Mar-24 | Dec-24 |
|---|---|---|---|
| Total AUM (In Rs. Crs) | 3,689 | 6,755 | 10,015 |
| Equity AUM (In Rs. Crs) | 3,443 | 6,306 | 9,220 |
| Debt AUM (In Rs. Crs) | 255 | 449 | 795 |
| Total Folios | 1,93,731 | 2,45,060 | 3,91,394 |
| SIP Folios | 67,219 | 95,545 | 1,59,011 |
| SIP Book (In Rs. Crs) | 24 | 35 | 64 |
| Number of Schemes | 17 | 17 | 18 |
| Empanelled Partners | 20,722 | 23,912 | 27,511 |
What is ITI Bharat Consumption Fund?
The newly launched ITI Bharat Consumption Fund NFO falls under the consumption theme, a true-to-label Consumption Fund that invests in companies that provide consumer goods and services.
This consumption fund focuses on sectors expected to benefit from the growing consumer demand in India. Moreover, it is built on a portfolio that is a mix of top and down and bottom-up stock-picking processes that are actively managed to align consumer needs to maintain a healthy demand and supply change of what people consume.
It is a type of thematic fund yet diversified fund as investments in sectors within consumption theme.
Portfolio Construction of ITI Bharat Consumption Fund
This New Fund Offer by ITI Mutual Fund uses a down-and-bottom-up stock-picking process for its portfolio construction. See the table below to know the allocation of money across various types of companies:
| Investment in | Allocation Up to | Type of Company |
|---|---|---|
| Established & Robust Companies | 30-40% | A part of the portfolio will be invested in companies with robust distribution models, stable ROE (Return on Earnings), predictable cash flows and a history of low volatility. |
| High Growing Companies | 30-40% | It will be invested in companies in their growth phase, beneficiary of rising income levels, transitioning to organise. |
| Emerging Trends | 20-30% | A portion invested in new age business models, which have the potential for disruption of existing business line. |
Likewise, it uses a unique portfolio creation approach that is divided into three factors, which are:
- Overall Investment Universe: The maximum 500 stocks, suitable for investment are closely monitored and valuations are tracked.
- Internal Filters: up to 250 stocks are selected based on macroeconomic factors and industry structure.
- Portfolio: up to 25-50 stocks are business fundamentals, management quality, company financials, stock exposure limits and benchmark weightage.
Pro Tip: Get your hands on the free SIP Calculator tool to know returns in minutes.
ITI Bharat Consumption Fund NFO Basic Details 2025
The below table covers the key information about this newly launched Consumption NFO 2025:
| Scheme Details | Information |
|---|---|
| Scheme Name | ITI Bharat Consumption Fund |
| Issue Open Date | 6th February 2025 |
| Issue Close Date | 20th February 2025 |
| Category | Equity - Thematic Consumption |
| Benchmark | Nifty India Consumption TRI |
| Minimum Application Amount | Rs.500 |
| Fund Managers | Mr. Rohan Korde & Mr. Dhimant Shah |
| Plans & Options | Regular and Direct Plans with Growth and Dividend Options |
Which Sectors Will the ITI Bharat Consumption Fund Invest?
The latest NFO, ITI Bharat Consumption Fund will invest across the following sectors:
E-commerce Sector: The penetration of the E-commerce industry in India has shown very high growth since 2014 with only 1.40% growth it has now achieved 8.30% in the last 2023. See the below graph and track the data yourself:
The e-commerce sector achieved a 44% revenue CAGR from FY20-FY24, holding a 55% market share in food delivery, one of the top reasons for using quick or insta delivery is given in the below graph:
Healthcare Sector: Investing in sectors gives the added benefit as it offers aggressive expansion up to 75% of FY2024 capacity, operating 22 healthcare facilities with a focus on high-value surgeries with oncology making up 26% and strong ARPOBs (Rs.75,000) due to high occupancy (75%). Refer to the below graph for data:
FMCG (Fast-moving consumer goods): These goods are sold quickly and at a relatively low cost such as leading beverage players, expanding the snacks business in Africa, raising funds via QIP and focusing on growth in energy drinks and dairy products. See the consolidated revenue and growth YoY of the FMCG sector:
Automobile Sector: Investing in this sector takes you closer towards sustainable investing, 2-wheeler electric vehicle retail market share is on the rise, also partnered with the state government to invest Rss.1200 Crore in future technologies and electric vehicles (EV).
The below graph shows the market share by percentage (%) of the 2-wheeler electric vehicle retail:
Fund Managers of ITI Bharat Consumption Fund NFO
It’s time to meet the fund manager of the newly launched ITI Bharat Consumption Fund NFO 2025:
Mr. Korde has over 17 years of experience in the finance world. He holds a Master's in Finance from Mumbai University and has worked with companies like ITI Asset Management, BOB Capital Markets, and Prabhudas Liladhar, focusing on investment research.
Mr. Dhimant Shah is a Chartered Accountant with 26 years of experience in Top Indian Mutual Funds. He has worked with companies like ASK Raymond James, Reliance AMC and HSBC Asset Management. He was ranked among the top 5 fund managers in 2019 and is passionate about India’s growth story through its top 500 companies.
Why Invest in the Newly Launched ITI Bharat Consumption Fund NFO?
The following points will give you strong reasons to invest in this latest Consumption fund NFO 2025:
- The ITI Bharat Consumption Fund invests in a mix of established, scalable and emerging businesses
- The portfolio is expected to be diversified within sectors in the consumption space.
- Combination of top-down and bottom-up portfolio creation approach making it market cap agnostic.
- This new NFO can be considered by investors across the various coming generations.
- The investment universe the over 500 stocks, providing you with a wide range of investment opportunities.
Who Should Invest in ITI Bharat Consumption Fund NFO?
This new consumption fund NFO is best suited for the following types of investors:
- Long-term Investors:If you plan to invest for 5+ years or more, then this newly launched NFO is a perfect match.
- Investing on Tactical Bets:Investors wanting to tactically take exposure to consumption related to companies in their portfolio.
- Structural Changes:Investors looking to invest in companies which are expected to benefit from structural, cultural and digital changes in India.
- Risk Takers: It is a good investment opportunity if you are someone willing to take high risk for higher returns in 2025.
To Conclude on ITI Bharat Consumption Fund NFO 2025
In short, the ITI Bharat Consumption Fund NFO targets the 3 generations of India (Bharat), Gen X & earlier, Gen Y (Millennials), Gen Z & beyond, bringing changes in the structural, cultural and digital sectors of India. So why should you hesitate? It is best to start your investments via SIP (Systematic Investment Plan) and take your cut from the growing consumer sector. If you, too, are looking for exposure to companies in consumption themes, this new NFO is your best bet, offering lower volatility in comparison to broader markets.
