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Mutual funds are introducing a new thematic option for investors — conglomerate funds — which focus on large industrial groups that house multiple businesses under one umbrella.

- SARBAJEET K SEN

The new fund offer (NFO) of Baroda BNP Paribas Business Conglomerates Fund closed on September 16. ICICI Prudential Conglomerate Fund’s NFO will open on October 3, 2025. Aditya Birla Conglomerate Fund, launched in December 2024, managed assets of 1,606 crore as on August 31, 2025. Tata BSE Select Business Groups Index Fund, a passive scheme, had assets under management (AUM) of €204 crore as onthe same date.

Large industrial groups housing multiple businesses under one roof, technically known as conglomerates, have been the cornerstones of the Indian economy. “Business Conglomerate (BC) funds allow investors to participate in diversified business groups within a single portfolio. These groups operate in multiple businesses across sectors, have strong brands, robust cash flows, can withstand challenging business cycles, and expand into new sectors by incubating and growing, thereby making them attractive long-term investments,” says Harish Krishnan, co-chief investment officer (co-CIO) and head of equity, Aditya Birla Sun Life Asset Management Company (AMC).