LIC MF launches new consumption-themed equity scheme. Here’s what you must know

LIC Mutual Fund has announced the launch of its thematic fund ‘LIC MF Consumption Fund’, an open-ended equity scheme following the consumption theme.

The scheme's New Fund Offer (NFO) begins on October 31 and ends on November 14, 2025. It will reopen for ongoing sales and repurchases on November 25, 2025. 

The scheme is managed by Sumit Bhatnagar and Karan Doshi and is benchmarked against the Nifty India Consumption Total Return Index (TRI).

The scheme seeks long-term capital growth through an actively managed portfolio of equity and equity-related securities. These investments focus on companies involved in, or connected to, consumption and related sectors. 

The fund plans to allocate 80-100% of its assets to companies likely to benefit from increasing domestic consumption. The fund manager may also invest up to 20% of assets outside this primary theme. 

Additionally, the Scheme will invest across a range of market capitalisations. However, there is no guarantee that the Scheme's investment objectives will be met.

RK Jha, Managing Director & Chief Executive Officer of LIC Mutual Fund, said, “We are launching a consumption fund as India is expected to experience a major consumption boom in the coming years. What makes India’s consumption story resilient is its growing middle class, healthy working-age population, rising per capita income, rapid urbanisation, and digitalisation. A larger middle-class segment is likely to make India a consumption powerhouse. Therefore, our new fund offers retail investors a better opportunity to capitalise on this cycle.”

During the NFO, the minimum application or switch-in amount is ₹5,000, with additional amounts available in increments of ₹1. The minimum for a Daily SIP is ₹100, for a Monthly SIP ₹200, and for a Quarterly SIP ₹1,000. The SIP start date will be effective once the scheme re-opens.

Yogesh Patil, Chief Investment Officer-Equity, LIC Mutual Fund, said, “India’s consumption boom is likely to persist for a decade or more, given its strategic position in the world order, strong fundamentals, ongoing structural reforms, and robust GDP growth." 

As one of the fastest-growing major economies, India is witnessing a surge in discretionary spending and a clear trend toward premiumisation across categories. 

"This shift is driven by a rising aspirational middle class, increasing disposable incomes, and evolving consumer preferences. Together, these factors may make consumption, especially in premium and lifestyle segments, a dominant and enduring theme in the investment landscape,” said Patil.