Union Mutual Fund launches Union Consumption Fund aiming to ride on India’s growing consumption cycle

Union Mutual Fund has launched the Union Consumption Fund, an open-ended equity scheme following the consumption theme. The New Fund Offer (NFO), which opened on December 1, will close on December 15. The launch seeks to ride on five ‘big bang initiatives’ unveiled over the last one year by the Indian government targeted at the nation's economy: Lowered tax rate in FY 26, GST 2.0 revisions, Eighth Pay commission, sustained lower Inflation and RBI's synchronised interventions. These factors, coupled with good monsoons, could lead to an orbital shift in consumption.

India's consumption index has outperformed the broader market

India's consumption index has been outperforming the broader market 13 times over the last 19

years. In 2019-2024, the Nifty India Consumption TRI delivered an average return on equity of 14.7 per cent, higher than the 12.5 per cent average of the broader Nifty 500 Index, according to Bloomberg estimates.

“On the back of 5 big structural changes unveiled by the GOI, India seems to on the cusp of a big shift in broad-based Consumption. We believe our R.I.S.E. framework is suited to extract the most

potential of this consumption theme, said Madhu Nair, CEO of Union Asset Management

Company Private Limited (Union AMC), while speaking about the fund.

"The expansion of the consuming class, the shift from mass to premium, and the digitisation of marketplaces together could form one of the most powerful multi-decadal investment themes. Through the Union Consumption Fund, we aim to offer investors a disciplined and diversified way to participate in this journey where every rupee spent contributes to the story of

progress.”

What is the RISE framework?

Union Consumption Fund (UCF) aims to invest in subsectors of consumption through its RISE framework : Reach, Intermediates, Spend Up and Experience, aiming to capture how India lives, spends and aspires.

R - Reach (Penetration): Companies expanding access to goods and services –

such as consumer durables, packaged foods and quick-service restaurants.

I - Intermediates (Enablers): Businesses facilitating consumption – including digital

platforms, fintech players and financial intermediaries.

S - Spend Up (Premiumisation): Firms catering to aspirational and higher-value

segments like the SUV market and real estate.

E - Experience (Consumer Services): Sectors where spending is driven by lifestyle

and experiences – such as travel, hospitality and entertainment.

India’s per capita income set to grow 1.6 times

The per-capita income of India has nearly tripled since 2008 and is expected to grow

another 1.6 times by FY2030, according to IMF World Economic Outlook. The number of upper-middle and high-income households, along with middle-income households, is projected to expand from 11.3 crore in 2023 to 18 crore by 2030, marking a 60 per cent increase in the country’s most consumption-heavy segment.

Union Consumption Fund is ideal for investors seeking to align portfolios with the Indian economy's structural transformation

The scheme aims to provide diversified exposure across multiple consumption touchpoints — from mass markets to aspirational categories — offering potential participation in both stable

and high-growth opportunities. The scheme will be managed by Mr Vinod Malviya, Fund Manager – Equity and Mr Sanjay Bembalkar, Head - Equity at Union AMC, the company said in a release.

Statutory warning:

*Investors should consult their financial advisers if in doubt about whether the

product is suitable for them.

Note: The product labelling assigned during the New Fund Offer is based on

internal assessment of the Scheme Characteristics or model portfolio and the same

may vary post NFO when actual investments are made. The Benchmark riskometer

is based on the evaluation of the portfolios for the month ended October 31, 2025.