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7 Reasons Why Indians Should Invest in Consumption Sector Mutual Funds
1. Tapping Into India’s Growth Story
India’s consumption sector is a cornerstone of its economic progress, driven by an expanding middle class and rising disposable incomes.
With over 50% of GDP coming from private
consumption, this sector is poised for exponential growth, making it a
lucrative investment avenue.
2. Diversification Across Consumer-Centric Industries
Consumption sector mutual funds invest in a variety of industries, including FMCG, automobiles, retail, and consumer durables.
This diversified exposure reduces risk while
ensuring that investors benefit from multiple high-growth sectors.
3. Impressive Historical Returns
Mutual funds focused on consumption have consistently delivered superior returns. Some funds have achieved over 40% returns in recent years,
showcasing the sector’s ability to
thrive even in volatile market conditions.
4. Resilience During Market Downturns
Consumer goods and services demonstrate steady demand, even during economic slowdowns. This inherent resilience makes
the consumption sector a safer option for long-term
investors seeking stability in their portfolios.
5. Alignment With Economic Trends
As India’s economy grows, consumer spending is set to rise further. Investing in this sector allows individuals to capitalize
on the strong link between economic progress
and consumer demand growth.
6. Boost From Government Policies
Initiatives to improve rural incomes, employment, and consumption are expected to have a direct positive impact on
companies within the consumption sector. These policies
create an environment conducive to sustainable growth.
7. Wealth Creation for the Long Term
India’s demographic dividend, with its young and aspiring population, is a driving force behind sustained consumption.
By investing in consumption sector mutual funds,
individuals can position themselves to benefit from this multi-decade growth
opportunity and create long-term wealth.
Investing in the consumption sector isn’t just about capitalizing on a trend—it’s about participating in the transformative
journey of a nation with boundless economic potential.
| Name of Company | Products/Services | Speciality | % of Indian Consumers |
| Zomato Limited | Online food delivery and restaurant discovery | Large urban user base, significant market share | 30-35% |
| Trent Limited | Retail operations - apparel, books, and value fashion | Broad customer base through Westside and Zudio | 10-15% |
| ITC Limited | FMCG products, hotels, agri-business | Substantial share in FMCG and cigarettes market | 50-60% |
| Mahindra & Mahindra Limited | Automobiles, tractors, IT, and real estate | Significant market share in tractors and SUVs | 25-30% |
| Info Edge (India) Limited | Online platforms - jobs, real estate, matrimony | Naukri.com: Widely used job portal | 40-50% |
| Godrej Consumer Products Limited | FMCG - soaps, hair colorants, insecticides | Leading brands in soaps and hair colorants | 20-25% |
| Bharti Airtel Limited | Telecom services - mobile, broadband, digital TV | One of the largest telecom operators in India | 50-60% |
| Havells India Limited | Electrical equipment - cables, fans, switches | Strong presence in electrical goods market | 30-40% |
| Marico Limited | FMCG - hair care, skin care, edible oils | Parachute and Saffola: Household brands | 35-40% |
| The Indian Hotels Company Limited | Hospitality - Taj Hotels, Resorts, and Palaces | Popular with high-income urban consumers | 5-10% |
| Radico Khaitan Limited | Alcoholic beverages - whisky, rum, gin | One of the top liquor brands in India | 15-20% |
| Oberoi Realty Limited | Real estate development - residential, commercial | Prominent player in Mumbai real estate | 5-10% |
| Eicher Motors Limited | Royal Enfield motorcycles and commercial vehicles | Dominates mid-size motorcycle segment | 20-25% |
| United Breweries Limited | Beer - Kingfisher and other brands | Leading beer brand in India | 25-30% |
| InterGlobe Aviation Limited | Airline services - IndiGo | Largest airline by passenger volume in India | 50-60% |
| Hindustan Unilever Limited | FMCG - personal care, home care, food | Market leader in FMCG sector | 60-70% |
| Jubilant Foodworks Limited | Food services - Domino's Pizza, Dunkin' Donuts | Operates widely in urban and semi-urban areas | 30-40% |
| Page Industries Limited | Apparel - Jockey innerwear and leisurewear | Major player in premium innerwear segment | 10-15% |
| Colgate Palmolive (India) Limited | Oral care products - toothpaste, toothbrushes | Dominant in oral care market | 60-70% |
| Dixon Technologies (India) Limited | Electronics manufacturing - consumer electronics | Significant manufacturer for consumer electronics | 15-20% |
| Hero MotoCorp Limited | Motorcycles and scooters | Major player in motorcycles and scooters | 25-30% |
| Tata Consumer Products Limited | FMCG - tea, coffee, packaged foods | Well-known brands like Tata Tea and Tata Salt | 50-60% |
| United Spirits Limited | Alcoholic beverages - whisky, vodka | Popular whisky and vodka brands in India | 20-25% |
| FSN E-Commerce Ventures Limited | E-commerce platform - beauty and fashion | Popular among young, urban online shoppers | 20-25% |
| Devyani International Limited | Quick-service restaurants - KFC, Pizza Hut | Operates numerous quick-service restaurants | 15-20% |
| Cera Sanitaryware Limited | Sanitaryware and bathroom fittings | Strong presence in sanitaryware segment | 10-15% |
| Safari Industries (India) Limited | Luggage and travel products | Prominent brand in luggage market | 10-15% |
| Britannia Industries Limited | FMCG - biscuits, dairy, bakery products | Household names in packaged foods | 40-50% |
| Voltas Limited | Air conditioners, home appliances | Popular in home appliances sector | 20-25% |
| Astral Limited | Pipe manufacturing and construction materials | Recognized for quality pipe products | 5-10% |
| Ganesha Ecosphere Limited | Recycled polyester staple fiber | Recycling leader in polyester fiber | 10-15% |
| Whirlpool of India Limited | Home appliances - refrigerators, washing machines | Popular in home appliance segment | 30-35% |
| Zydus Wellness Limited | FMCG - health foods, wellness products | Trusted brand for health and wellness | 25-30% |
| Gillette India Limited | Personal grooming products | Strong presence in grooming products | 20-25% |
| V-Mart Retail Limited | Retail stores - apparel and lifestyle products | Expanding presence in tier-2 and tier-3 cities | 15-20% |
| Westlife Foodworld Limited | Quick-service restaurants - McDonald's India | Popular with McDonald's customer base | 20-25% |
| Metro Brands Limited | Footwear retail | Growing brand in footwear retail | 15-20% |
| Emami Limited | FMCG - cosmetics, personal care products | Stronghold in cosmetics and skincare | 5-10% |
| Landmark Cars Limited | Luxury cars dealership | Catering to luxury car market | 10-15% |
| Go Fashion (India) Limited | Apparel - women’s ethnic and fusion wear | Popular in women’s ethnic wear |
