Thriv­ing with the Con­sump­tion Story

Mi­rae As­set Great Con­sumer Fund

The Economic Times - - Smart - PORT­FO­LIO CHANGE

For re­tail in­vestors, In­dia’s con­sump­tion story is key be­cause they are a part of it. Among schemes that have a sharp fo­cus on the con­sump­tion theme, Mi­rae As­set Great Con­sumer Fund has con­sis­tently de­liv­ered good re­turns. Cur­rently, a large part (21.4%) of the scheme’s port­fo­lio is ex­posed to bank­ing and fi­nan­cials. One of the chief rea­sons for this is th­ese sec­tors serve as back­bone of the econ­omy by fund­ing growth. The scheme also has rea­son­ably good ex­po­sure to other themes un­der con­sump­tion. Th­ese are con­sumer non-durables and au­to­mo­biles.

In the com­ing quar­ters, there are two key fac­tors which are ex­pected to boost con­sump­tion on a large scale. First, the im­ple­men­ta­tion of Sev­enth Pay Com­mis­sion — as buy­ing of cars and other con­sumer durables is linked to pay hike. Sec­ond, in the ab­sence of any cut in in­ter­est rates, con­sumer durables com­pa­nies may come up with dis­counts on oc­ca­sions such as cricket IPL (tele­vi­sion) or sum­mer sea­son (air con­di­tion­ers) to lure con­sumers to main­tain mo­men­tum in sales.

The scheme’s fund man­agers Nee­lesh Su­rana, Ankit Jain and Bharti Sawant have con­sis­tently stuck to the fund house’s phi­los­o­phy of re­frain­ing from buy­ing over­val­ued stocks and in­stead fo­cussing on those com­pa­nies which have high cash­flows and good re­turns ra­tios. The fund man­agers have con­structed quite a di­verse port­fo­lio of com­pa­nies that in­clude Tata Global Bev­er­ages (Star­bucks), Ti­tan In­dus­tries (jewellery, watches) and Ceat in­di­cat­ing their roles in con­sump­tion theme.

New En­trants Com­plete Ex­its Fu­ture Life­style Fash­ions In­crease in Al­lo­ca­tion

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