List of Top Consumption Fund in India

Consumption mutual funds focus on India’s growing demand for consumer goods and services, a sector that forms a large part of the economy. Over the past decade, the Nifty India Consumption Index TRI delivered a CAGR of more than 14.5%. This article will cover the top 10 consumption funds, their features, risks, and key factors to consider.

Best Consumption Mutual Funds in India

Fund Name	AUM	CAGR 3Y	CAGR 5Y	Expense Ratio	Alpha	Absolute Returns - 1Y	Absolute Returns - 3M	Absolute Returns - 6M	Volatility	NAV	Exit Load
Aditya Birla SL Consumption Fund	6,239.43	16.65	22.10	0.77	5.59	-0.39	5.06	18.01	13.15	254.27	1.00
Mirae Asset Great Consumer Fund	4,403.34	19.89	23.91	0.43	6.38	-0.45	8.16	21.38	14.29	116.59	1.00
Axis Consumption Fund	4,062.75	0.00	0.00	0.46	9.53	0.00	7.29	17.21	13.94	10.01	1.00
ICICI Pru Bharat Consumption Fund	3,199.90	18.62	21.56	1.07	5.01	-0.71	5.75	17.59	12.30	28.14	1.00
SBI Consumption Opp Fund	3,174.73	17.57	26.19	0.94	4.09	-5.10	4.87	14.11	14.01	365.72	0.10
Nippon India Consumption Fund	2,664.13	18.76	24.80	0.55	5.68	-0.91	6.38	18.88	13.45	233.16	1.00
Tata India Consumer Fund	2,482.35	19.58	22.45	0.72	6.83	0.27	6.47	17.69	15.88	53.25	0.25
ICICI Pru FMCG Fund	2,001.81	10.17	16.02	1.26	5.77	-8.09	2.14	11.66	12.44	539.93	1.00
Canara Rob Consumer Trends Fund	1,911.59	17.35	23.19	0.81	3.68	-1.53	2.75	16.18	14.41	128.50	1.00
HSBC Consumption Fund	1,624.27	0.00	0.00	0.80	8.72	3.43	7.21	20.28	17.03	15.50	1.00

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Note: The data on the list of the consumption funds is from 8th September, 2025. This data is derived from the Tickertape Mutual Funds Screener.

Selection Criteria:

• Category – Equity
• Plan – Growth
• AUM – Sorted from Highest to Lowest

🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

Overview of Top Consumption Mutual Funds

Aditya Birla SL Consumption Fund

A thematic scheme investing in companies linked to consumption, such as retail, FMCG, and consumer services. The portfolio reflects exposure to sectors influenced by rising demand patterns, urbanisation, and lifestyle changes, aiming to mirror growth trends in India’s consumption-driven economy.

Mirae Asset Great Consumer Fund

This scheme invests in businesses across FMCG, retail, automobiles, and lifestyle segments. The portfolio composition reflects structural changes in consumer demand and highlights companies associated with India’s consumption patterns and rising discretionary expenditure.

Axis Consumption Fund

Axis Consumption Fund invests in a portfolio of consumption-oriented companies from FMCG, retail, and lifestyle segments. The allocation is aligned with India’s expanding consumption economy, capturing data-driven exposure to consumer-focused businesses and related sectors.

ICICI Prudential Bharat Consumption Fund

A thematic scheme that invests in consumption-linked sectors, including FMCG, retail, healthcare, and discretionary services. The fund maintains exposure to companies reflecting demand patterns shaped by income growth and evolving consumption trends across India.

SBI Consumption Opportunities Fund

The scheme invests across FMCG, automobiles, entertainment, and consumer services. Its portfolio reflects companies associated with India’s domestic demand expansion, offering a representation of consumption-driven sectors in the Indian economy.

Nippon India Consumption Fund

This consumption-oriented scheme invests across FMCG, retail, automobiles, and services. Its holdings represent businesses positioned within India’s consumer market, reflecting ongoing shifts in domestic demand and lifestyle-driven sectors.

Tata India Consumer Fund

A consumption-theme scheme with exposure to FMCG, retail, lifestyle, and discretionary companies. The portfolio structure mirrors India’s evolving consumer markets and sectors linked to long-term demand patterns.

ICICI Prudential FMCG Fund

A sector-specific fund investing in FMCG companies across categories such as food, personal care, and household products. Its portfolio highlights India’s consumer goods industry and reflects steady demand across essential consumption sectors.

Canara Robeco Consumer Trends Fund

This thematic scheme invests in FMCG, retail, healthcare, and discretionary companies. The portfolio reflects businesses aligned with India’s changing consumption sector and emerging demand patterns across essential and lifestyle categories.

HSBC Consumption Fund

HSBC Consumption Fund invests in demand-oriented sectors, including FMCG, autos, retail, and healthcare. The portfolio composition represents companies influenced by India’s consumption-led economy and reflects structural demand drivers within the market.

What are Consumption Funds?

Consumption funds are thematic equity mutual funds that invest in companies linked to consumption-driven sectors. These sectors include FMCG, automobiles, retail, consumer durables, entertainment, travel, and healthcare.

Taxation on Consumption Funds

Consumption funds fall under the category of equity mutual funds as they primarily invest in equity and equity-related instruments of consumption-driven companies. The taxation rules for such funds are aligned with equity mutual fund taxation in India.

Type of Capital Gain	Holding Period	Tax Rate	Exemption / Threshold
Short-Term Capital Gains (STCG)	Less than 12 months	20% flat	No exemption
Long-Term Capital Gains (LTCG)	More than 12 months	12.50%	Gains up to ₹1.25 lakh per financial year exempt

How to Invest in Consumption Funds?

You can easily start to invest in consumption funds by following these steps:

1. To invest in the best consumption mutual funds, you can visit a mutual fund investment platform such as smallcase.
2. The next step is to research and identify the consumption mutual funds that match your financial goals. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
3. Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or a consumption mutual fund SIP, and complete the process.

How Do Consumption Funds Work?

• Equity Focus: These funds primarily invest in equities of consumer-oriented companies across sectors such as FMCG, retail, automobiles, and services.
• Linked to Demand and Cycles: Their performance is closely tied to consumer demand patterns and overall economic growth cycles.
• Growth Phases: During economic expansion, higher discretionary spending boosts company earnings and stock performance.
• Downturn Phases: In slower markets, demand for essentials like groceries, personal care, and telecom provides relative stability.
• Balanced Exposure: This dual exposure allows consumption funds to combine long-term growth potential with resilience during uncertain times.

Types of Consumption Funds

• FMCG-Focused Funds: These funds invest in staples such as packaged foods, beverages, personal care products and household items. Demand stays steady in all economic condition, which makes FMCG funds relatively stable.
• Automobile-Oriented Funds: These funds invest in automakers and auto-component manufacturers. Rising urbanisation, growing aspirations and advancements in mobility technologies drive strong consumer demand in this segment.
• Banking and Financial Services Funds: These funds invest in banks and NBFCs that fuel consumer spending through loans, credit cards and financial products. Their growth directly links to increasing disposable incomes and economic expansion.
• Telecom and Technology Funds: These funds invest in companies that provide internet, telecom and digital services. Rapid smartphone penetration and growing digital adoption continue to drive this segment’s growth.

Advantages of Investing in Consumption Funds

• Growth Potential: India’s large population and growing middle class present big opportunities. As more people earn higher incomes and join the consumer economy, demand for goods and services rises steadily. This fuels long-term growth for consumption funds, making them appealing to investors seeking the best consumption mutual funds in India.
• Resilience from Necessities: When people cut back on spending for cars and luxury items during tough times, they still buy basics like food, clothing, and healthcare. This steady demand for essentials helps consumption funds stay stable when markets are volatile.
• Longevity of Brands: Many companies that focus on consumers have operated for decades. They have strong distribution networks and loyal customers. Their long track record means investors get exposure to businesses that can handle economic ups and downs.
• Broad Coverage: Consumption funds cover many industries, including FMCG, automobiles, telecom, and financial services. Investors gain access to different sectors under one theme, which helps diversify their portfolios.

Risks of Consumption Funds

• Concentration Risk: Consumption funds focus on one theme. If consumption-driven sectors underperform, the fund’s overall returns may decline.
• Market Sensitivity: These funds move closely with the economy. Lower consumer confidence or shrinking disposable incomes can reduce demand in discretionary categories like automobiles and luxury goods.
• Changing Consumer Preferences: Consumer behaviour changes quickly. Shifts in lifestyle, adoption of new technologies, or disruptive brands can lower demand for products from established market leaders.
• Regulatory and Economic Factors: Government policies, GST updates, interest rate hikes, and rising inflation affect consumer demand. Higher inflation, for example, reduces purchasing power and impacts sectors like FMCG and discretionary spending.
• Volatility in Returns: Returns from consumption funds can be more volatile than diversified equity funds. Their performance depends largely on consumer demand trends and overall economic health.

Factors to Consider Before Investing in Consumption Funds

• Risk Profile: Consumption funds focus on a concentrated set of sectors, and their returns tend to fluctuate more noticeably over shorter periods than those of broader equity funds. Their behaviour changes with market conditions, and outcomes can differ across risk profiles.
• Investment Horizon: These funds often reflect trends in India’s long-term consumption growth. Performance patterns are more visible over longer periods, while shorter periods often show greater fluctuations.
• Fund’s Investment Approach: Each fund follows its own strategy for sector allocation and stock selection. Understanding these approaches helps in assessing how a fund positions itself within the consumption theme.
• Historical Performance & Expense Ratio: Past performance of these funds varies across market cycles. Expense ratios also differ between schemes and can affect overall returns. Comparing data across multiple funds can provide insights into trends and cost structures.

Who Can Consider Investments in Consumption Funds?

• Long-Term Investors: These investors usually focus on capital appreciation over extended periods. In the case of consumption funds, performance trends tend to become clearer over longer horizons, while short-term volatility remains a factor.
• High-Risk Appetite Investors: Consumption funds focus on a single theme, which can create concentration risk and higher volatility compared to diversified equity funds. Their performance often reflects sharper swings, along with the possibility of larger gains or losses.
• Believers in India’s Consumer Growth Story: Individuals who want exposure to India’s rising middle class, increasing disposable incomes, and changing lifestyle trends. These macroeconomic drivers position consumer-oriented sectors as long-term growth engines.
• SIP Investors: Systematic Investment Plans (SIPs) are a practical way to invest in consumption funds. By spreading out investments over time, SIPs reduce the impact of short-term market swings and average out entry costs.

To Wrap Up…

Consumption mutual funds provide investors with an opportunity to be a part of  India’s booming consumer economy. By investing in both necessity and discretionary sectors, these funds reflect trends linked to growth in consumer demand and shifts in spending patterns over time. However, they are not without risks; market volatility, regulatory shifts, and changing consumer behaviour can all impact returns.

Ultimately, consumption funds are best suited for investors who have a long-term horizon, a high-risk appetite, and an interest in participating in the evolving consumer landscape of India. Whether through SIPs or lumpsum investing, identifying the best consumption funds can help investors align with India’s consumption growth story.

Frequently Asked Questions About Consumption Fund