All of us look to invest in funds that can tap into upcoming opportunities and yield attractive returns. One such opportunity lies in investing in funds that are poised to take advantage of the next wave of the consumption story in India.
Given India’s demographics, a large number of young Indians are joining workforce every year. Further, a considerable number of households are joining the high disposable income category. With rising income, spending power is getting a boost.
If you are looking to profit from this powerful trend, Aditya Birla Sun Life India GenNext Fund can be a good choice. The fund invests in those companies that seek growth in revenues arising out of demand from products or services, especially in line with the preferences of the younger generation (GenNext). The fund takes into account that the next generation is different from previous generation, especially in terms of lifestyle choices, consumption patterns, and brand preferences.
The fund follows a multi-cap investment strategy thus providing diversification. Despite the market corrections over years and market cycles, this fund has stood the test of time. Last year when market witnessed sharp corrections and concerns over high valuations, this fund continued to deliver consistent performance. The fund has given nearly 14% returns in last one year and over 16% since its inception i.e. 2005.
Anil Shah, Senior Fund Manager, Aditya Birla Sun Life MF, manages this fund. Anil has close to three decades of professional experience in Indian equity markets.
The fund’s portfolio is constructed with good quality companies spread across consumer focused sectors with higher return on equity (ROE), return on capital employed (ROCE), lower leverage and proven track record of being long term wealth creators.
In 2020, India’s workforce is set to go past 90 crore. To put this number in context, it will be larger than Europe or North America's entire population. Moreover, where most developed countries have already started to age, India's demographic dividend will continue to play until 2050. Surely, this makes a strong case to include a consumption fund in your portfolio.
