Just ₹100 a day: LIC MF’s new NFO targets India’s rising middle-class consumption power

LIC Mutual Fund has launched a new thematic equity scheme, the LIC MF Consumption Fund, targeting India’s booming consumption story. With daily SIPs starting at just ₹100, the fund promises a low-entry point for investors eyeing long-term capital growth.

Announced as a New Fund Offer (NFO), the LIC MF Consumption Fund will remain open for subscription until November 14, 2025. Post this period, it will be available for continuous purchase and redemption from November 25, 2025.

The fund aims to invest in companies poised to benefit from India’s rising domestic consumption and related sectors. The investment strategy includes:

• 80–100% allocation to equities and equity-related instruments in consumption-linked sectors.
• Up to 20% in companies outside the theme or in other sectors.
• A diversified portfolio across large, mid, and small-cap stocks.
• No guarantee of objective fulfillment, as clarified by the fund house.

Fund Management and Benchmark
The fund will be managed by Sumit Bhatnagar and Karan Doshi, and will track the Nifty India Consumption Total Return Index (TRI) as its benchmark.

SIP Options
The fund allows investors to start with a minimum lump sum of ₹5,000 during the NFO and add in multiples of ₹1. Once the scheme reopens, SIP options will include:

• Daily SIP: Minimum ₹100
• Monthly SIP: Minimum ₹200
• Quarterly SIP: Minimum ₹1,000

This scheme is ideal for long-term investors confident in India's consumption-driven growth. It also appeals to trend-seekers aiming to ride the wave of rising consumer demand fueled by income growth, urbanisation, digital adoption, and strong demographics.

Exit Load
There is no exit load on up to 12% of units if redeemed within 90 days. Beyond this limit, a 1% load applies, but no exit load is charged after 90 days.

LIC Mutual Fund describes the launch as a timely move aligned with India’s evolving consumption landscape. As incomes rise and cities expand, companies tied to consumption are expected to benefit significantly—making this fund a thematic bet on India's future.