SBI Mutual Fund will launch a consumption ETF, an open-ended scheme that will track the Nifty India Consumption Index. The new fund offer will open for subscription between June 30 and July 14.

The Nifty India Consumption Index’s TRI has delivered a return of 14 per cent since inception.

The new scheme is suitable for investors who are seeking long term capital appreciation and investment in securities covered by the Nifty India Consumption Index.

Also read: Navi MF launches Nifty index fund with lowest charges

Vinay M Tonse, Managing Director & CEO at SBI MF said passive funds are gaining traction in India where investors would like to invest in line with an index. Investments in ETFs are beneficial for those looking to get exposure to a broad range of asset classes at a lower cost.

DP Singh, Chief Business Officer at the firm said the consumption has underperformed Nifty and investors can benefit from a rebound in consumer product demand as fears on Covid subside.

More than timing the market, the launch of the consumption ETF is just to complete the bouquet of product offerings, he added.

As of now, ETFs account for 25 per cent of the overall AUM, he said.

The Nifty India Consumption Index, which consists of 20 stocks, is rebalanced on a semi-annual basis.

Invesco debt fund NFO

Invesco Mutual Fund has launched its Medium Duration Fund, an open-ended medium term debt scheme investing in instruments of 3-4 year maturity.

The Invesco India Medium Duration Fund seeks to generate income by investing in a portfolio of debt and money market securities.The fund will not invest in bonds which are rated below AA-.

Saurabh Nanavati, Chief Executive Officer, Invesco Mutual Fund said the new fund aims to capture the current market opportunities both on the yield curve as well as on the credit market.

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