LIC MF Consumption Fund: NFO- A Complete Investment Guide

LIC MF Consumption Fund: NFO- A Complete Investment Guide

Quick Snapshot

ParameterDetails
CategoryEquity
Sub-categoryEquity – Diversified
Scheme TypeOpen-ended
Fund ManagerSumit Bhatnagar
Min Investment₹5,000
Additional Investment₹500
Open DateOct 31, 2025
Close DateNov 14, 2025
Exit LoadAs applicable
NAV CalculationDaily
Risk LevelVery High
Repurchase/RedemptionAllowed

The investment objective of the Scheme is to achieve long term capital appreciation by predominantly investing in equity and equity related instruments of companies following consumption theme. There is no assurance that the investment objective of the Scheme will be achieved.

Benchmark Details

The LIC MF Consumption Fund typically benchmarks against a relevant equity index like Nifty Consumption Index to evaluate performance.

Purpose of Benchmark:

  • Helps investors compare the fund’s returns with the broader market.
  • Indicates how the fund is performing relative to peers in the consumption sector.

Why Invest in LIC MF Consumption Fund?

Here are some compelling reasons:

Capitalizing on Consumption Growth:

India’s consumption sector is expanding due to urbanization, rising income levels, and lifestyle upgrades.

Premiumization Trend:

Increasing demand for premium and aspirational products creates opportunities for long-term growth.

Diversified Portfolio:

Investments span multiple consumption-related sectors, reducing reliance on any single company or industry.

Professional Fund Management:

Managed by Sumit Bhatnagar, focusing on active selection of high-potential companies.

Long-Term Wealth Creation:

Suitable for investors seeking growth through equity exposure over the long term.

Investment Areas — Sectors & Companies

The fund invests 80–100% of assets in equities of companies in:

  • Consumer Goods: FMCG, household products
  • Consumer Services: Retail, e-commerce
  • Lifestyle & Leisure: Apparel, personal grooming, entertainment
  • Emerging Categories: Health, wellness, and premium products

Allocation Flexibility: The fund manager may invest up to 20% outside core consumption areas to capture growth opportunities.


Fees, Loads & Taxation

Expense Ratio: Check latest factsheet.
Exit Load: 0.25% if redeemed within 15 days; nil after 15 days.
Taxation:

  1. Dividend taxable as per income tax slab.
  2. Short-term (<1 year): Taxed at 20%.
  3. Long-term (>1 year): Tax-free up to ₹1.25 lakh; beyond that taxed at 12.5% without indexation.

🔗 How to Invest Online?

You can easily invest through our online investment platform.


Dealing with the Pain Points of Investors

Q1: Is this fund suitable for risk-averse investors?

A: No, the fund is categorized as Very High Risk. It’s best suited for long-term investors willing to accept volatility.

Q2: Can I invest a small amount initially?

A: Yes, the minimum initial investment is ₹5,000, with incremental investments of ₹500.

Q3: What is the exit load?

A: Exit loads may apply if redeemed within the specified period. Investors should check the latest fund documents.

Q4: Is this fund aligned with a specific index?

A: The fund follows an active investment strategy and does not strictly track an index, providing flexibility to exploit market opportunities.

Q5: How often is NAV calculated?

A: NAV is calculated daily, reflecting real-time valuation of fund assets.

LIC MF Consumption Fund

Q1: Who manages the LIC MF Consumption Fund?

A: The Fund manager for this fund is Sumit Bhatnagar.

Q2: What sectors does the fund invest in?

A: Primarily in consumption-related sectors such as FMCG, retail, lifestyle, and leisure.

Q: What is the minimum investment amount?

A: ₹5,000 for the initial investment, ₹500 for subsequent investments.

Q: Can the fund invest outside the consumption theme?

A: Yes, up to 20% of assets allocated outside the theme for diversification and growth opportunities.

Q: What is the ideal investment horizon?

A: At least 5–7 years to benefit from long-term capital appreciation.

The LIC MF Consumption Fund offers a strategic avenue for investors looking to capitalize on India’s consumption-driven growth. With professional management and a diversified consumption-focused portfolio, the fund is designed for long-term wealth creation.



Disclaimer
This article is for informational purposes only and does not constitute financial advice. Past performance is not a guarantee of future returns. Before investing, you should consult a qualified financial advisor, consider your risk tolerance, investment horizon, and review the latest scheme documents, factsheet and disclosures from LIC Mutual Fund.

📅 Last Updated on: December 1, 2025

  • Sushil Bajaj
  • October 25, 2025

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