Nifty Non Cyclical Consumer Index offers investors largely stable product

The Nifty Non-Cyclical Consumer Index tracks the performance of a portfolio of stocks that broadly represenh bt the Non-Cyclical Consumer theme within the basic industries like Consumer Goods, Consumer Services, Telecom, Services, Media, Entertainment, Publication, Textiles sectors, etc. The largest 30 stocks from eligible basic industries (7 industries in total shown in the sector breakup) are chosen based on their 6-month average free-float market capitalization as on the cutoff dates at the end of January and July. The weight of the stocks in the index is based on their free-float market capitalization with the weight of a stock in the index capped at 10%. 

Non-cyclical companies are companies that produce essential goods whose demand remains stable across different phases of the economic cycle. On the other hand, cyclical companies produce goods that can see relatively large increases in demand during economic upswings and the opposite during economic downswings. Due to large variations in demand, cyclical companies have higher earnings variability than non-cyclical companies. While the share price movement of non-cyclical companies is often not closely related to GDP growth, the share price movement of cyclical companies is usually more closely related to GDP growth, frequently rising and falling by a greater magnitude than non-cyclical companies during economic ups and downswings

Potential for growth:

● Rising per capita GDP will lead to higher consumer spending leading to growth of this sector

● Young median population in India

● Rising income

● Increase in organized sector market share

● Urbanization

● Digitization

● Consumer confidence in the economic 

Who should invest in this fund?

● Investors who are looking for stable consistent returns

● Investors who have a lower risk tolerance 

● Capitalize on India’s rising per capita GDP.