Axis Mutual Fund has unveiled an ‘Axis Consumption Fund’ for investments in equities of consumption stocks. The new fund offer (NFO) opens on August 23 and closes on September 6. The fund is an open-ended equity scheme.

“The Axis Consumption Fund offers investors an opportunity to participate in this unfolding trend and aims to build a robust portfolio that captures this dynamic growth,” Ashish Gupta, Chief Investment Officer, Axis AMC, said in a statement. 

The fund is benchmarked on the Nifty India Consumption TRI and would invest in equity in eight sectors, namely FMCG, automobile and accessories, telecommunication, healthcare, realty, power, consumer services, and consumer durables, the company said in a media briefing. 

The new fund will invest both in cyclical and non-cyclical sectors for diversity and has an investment horizon of more than five years. Cyclical sectors are those that are easily affected by fluctuations in the business cycle, which means, the seasonal volatility can affect portfolios in the fund. The exposure to cyclical sectors is less than 30%, Axis MF said in a media briefing. The mutual fund scheme is rated very high on risk, according to the company’s statement.