LIC Mutual Fund has introduced its latest New Fund Offer (NFO) — the LIC Consumption Fund.
The NFO will open for investment on October 31, 2025, and close on November 14, 2025.
This is an open-ended equity scheme that falls under the equity thematic category. The minimum investment amount is ₹5,000, and SIP options are also available.
The fund aims to generate long-term capital appreciation by using six specific investment strategies.
Key Details:
Fund House: LIC Mutual Fund
NFO Open Date: October 31, 2025
NFO Close Date: November 14, 2025
Type: Open-ended
Category: Equity Thematic – Consumption
Minimum Investment: ₹5,000
Lock-in Period: None
Exit Load: 1% if redeemed within 90 days
Riskometer: Very High
Benchmark: Nifty India Consumption TRI
Investment Objective and Theme
The main goal of the LIC Consumption Fund is to generate long-term wealth by investing in companies linked to India’s consumption growth.
These include businesses involved in products and services that benefit from rising consumer demand.
While the fund aims to deliver consistent long-term returns, there is no guarantee of achieving the stated objectives.
India’s economy is largely consumption-driven, supported by factors like rising incomes, improved lifestyles, and increasing formalization.
The LIC MF Consumption Fund seeks to capitalize on these long-term growth trends.
Six Key Investment Strategies
Urbanization: Focus on sectors that enhance quality of life — such as travel, education, healthcare, insurance, and transportation.
Income Growth: Rising incomes are boosting spending not only on essentials but also on hobbies and experiences like travel and entertainment.
Premiumization: Growing affluence is increasing demand for premium goods — luxury travel, high-end electronics, and branded products.
Formalization and Consolidation: Shift from unorganized and unbranded markets to formal and branded consumption.
Lifestyle Upgrades: Rising demand for luxury homes, premium cars, and high-end gadgets.
Technology and Digitization: Expansion of online shopping, instant delivery, gaming, and fintech platforms transforming consumer behavior.
Why Consider Investing in This Fund?
Captures Consumption Growth: Positioned to benefit from rising consumer spending driven by tax cuts, pay hikes, and government welfare programs.
Diversified Yet Focused Portfolio: Actively managed across multiple sectors connected to consumption.
Quality-Focused Strategy: Invests in companies across large, mid, and small caps with high growth and strong returns.
Resilient in Market Cycles: Consumption sectors generally stay stable even during economic slowdowns.
Aligned with India’s Growth Story: Direct exposure to India’s expanding consumption sector — one of the key drivers of the nation’s economic growth.
