Lifestyle fund…A theme-based scheme


A lifestyle fund is normally a sectoral fund which invariably invests in rapidly growing companies in mass consumption oriented sectors

What is a lifestyle fund?

The Indian mutual fund industry introduced the concept of lifestyle fund as an investment theme a few years ago. A lifestyle fund is normally a sectoral fund which invariably invests in rapidly growing companies in mass consumption oriented sectors.

Lifestyle funds generally seek to capitalise on the growing and sustainable consumption boom in India. The key drivers for the lifestyle theme based funds are four ‘As’ viz awareness, availability, aspiration and affordability. This together facilitates the consumption boom—the basic idea on which the scheme evolves. Some of the lifestyle funds are UTI India Lifestyle, Kotak Lifestyle and Birla Sun Life India GenNext Fund.

Investment strategy

A lifestyle fund aims to invest in companies that would benefit directly from rising consumption patterns, which ought to get fuelled by the high disposable incomes in the hands of the younger generation.

The scheme endeavors to invest across sectors and companies like media, personal care, telecom and entertainment, which benefit from the change in the scale of demand.

Lifestyle funds can feature conservative, moderate or aggressive growth strategies. Aggressive growth lifestyle funds are usually targeted at investors in their late 20s, while conservative growth funds are normally aimed at investors in their late 50s.

Investment objective

The investment objective of a lifestyle fund is to provide long-term capital appreciation and/or income distribution from a diversified portfolio of equity and equity related instruments of companies that are expected to benefit from changing Indian demographics, Indian lifestyle and rising consumption pattern.


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