NFO Alert: LIC Mutual Fund Launches Consumption Fund

LIC Mutual Fund has opened subscriptions for its new scheme, LIC MF Consumption Fund. The New Fund Offer (NFO) begins on October 31, 2025, and will close on November 14, 2025. This is an open-ended equity scheme that falls under the Equity – Diversified category. The fund’s Net Asset Value (NAV) will be updated daily.

Fund Objective

The scheme seeks to generate long-term capital appreciation by investing mainly in equity and equity-related instruments of companies operating within the consumption segment. These could include sectors such as retail, fast-moving consumer goods, automobiles, and other consumer-oriented industries. 

The fund document clarifies that achieving this investment objective is not guaranteed.

Investment Terms

The minimum investment amount during the NFO is ₹5,000, with additional investments allowed in multiples of ₹500. After the NFO period, the fund will remain open for ongoing purchases and redemptions. 

The exit load will apply as per the fund’s terms if investors withdraw within a defined period after purchase.

Risk Classification

The LIC MF Consumption Fund carries a “Very High” risk label under SEBI’s riskometer. It is therefore meant for investors who are comfortable with equity market volatility and are looking at investments from a long-term perspective.

The fund will primarily invest in equity and equity-related securities of companies benefiting from domestic consumption-driven demand, targeting an allocation of 80-100% of its total assets. Up to 20% of the scheme's assets may be invested in opportunities outside this primary consumption theme.

Fund Management

The scheme will be managed by Sumit Bhatnagar, who will oversee the portfolio construction and ensure that investments align with the fund’s consumption-based theme. The fund house will publish the NAV daily, enabling investors to track performance regularly.

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Conclusion

The LIC MF Consumption Fund offers exposure to companies that derive a large part of their revenue from India’s growing consumer demand. The fund operates as an open-ended equity scheme, providing flexibility in investment and redemption once the NFO period ends.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.