Consumption Theme Mutual Funds

Let us look closely at the 3 Best Consumption Mutual Funds in India to invest in:

1. ICICI Prudential Bharat Consumption

   The ICICI Prudential Bharat Consumption Fund was established on 12th April 2019. It has shown a strong performance of 22.48% annualized returns in 3 years whereas its benchmark has given only 17.16% returns. This fund specialised investing in best quality consumer driven companies at very low valuation. Therefore, there is a high margin of safety to make high returns. Since launch, the value of 5000 SIPs would have become Rs.254, 537 generating 12% annualised returns.

2. Mirae Asset Great Consumer

   Belonging to a thematic fund category, Mirae Asset Great Consumer Fund is built with a multi cap strategy where it actively manages its portfolio. It smartly identifies growing companies with high ROE making it fundamentally strong while also giving it a sustainable competitive edge. Moreover, this stock is currently managing an AUM of Rs.3751 Crores as of 30th Jun 2024.

3. Canara Robeco Consumer Trends Fund

   After being launched on 14 September 2009, Canara Robeco Consumer Trends Fund is among its category's oldest Equity schemes. It holds an impressive AUM (Asset under Management) at Rs.1598 Crores as of 30th June 2024. Canara Robeco focuses on companies with sustainable competitive advantages and high-quality management. This stock has kept a focus on long-term earnings with well-managed companies in its portfolio.

The following points give a step-by-step guide about how these Mutual Funds work:

Focus on Consumer Related Industries

These funds invest in sectors influenced by consumer behavior changes, such as consumer goods, retail, e-commerce, entertainment, hospitality, and healthcare.

Diversified Portfolio

The fund diversifies its investments by holding shares in the top 30-40 companies across various sectors. This strategy helps to spread risk and balance potential gains, taking advantage of different industry trends to enhance overall performance.

Long-Term High Growth

The aim is to benefit from long-term trends expected to drive consumer spending and growth. By investing early in these themes, the funds seek to achieve significant returns as the trends develop.

The merits of a scheme help to make a well-thought decision. Here are some:

1. Growth Potential

   • Thematic consumption funds focus on companies that are riding the wave of consumer trends and behavior.
   • Investing in these funds gives you the opportunity to potentially benefit from the growth of these companies as the trends gain momentum.

2. Diversification

   • Thematic-consumption funds invest in a diversified portfolio of companies across different sectors and industries.
   • This diversification helps spread out the risk, making the overall investment less risky.

3. Professional Management

   • Experienced professionals who specialize in identifying managing these funds and investing in companies related to specific consumer trends.
   • The fund managers' expertise can potentially add value to your investment.

4. Alignment with Trends

   • Thematic consumption funds are designed to capitalize on evolving consumer preferences and behaviors.
   • By investing in these funds, you can participate in the growth of industries and sectors that are well-positioned to benefit from changing consumer trends.

5. Customized Exposure

   • Thematic consumption funds allow you to tailor your investment to specific consumer themes that align with your investment goals and preferences.
   • You can choose funds that focus on areas of consumer behavior that you find interesting or promising.

Moreover, you can calculate your returns by yourself by using a simple SIP Calculator tool.

To start investing, use a user-friendly platform like MySIPonline. Here is a step-by-step guide:

• Create an Account: Begin by signing up, filling in your profile, and completing the KYC process.
• Set up Auto-Debit: Arrange for automatic SIP deductions by setting up a debit mandate.
• Select a Fund: Choose a Consumption funds that aligns with your goals, or seek advice from a financial expert.
• Make Your Investment: Add the chosen fund to your cart, select your SIP date, and make your initial payment online.
• Monitor Your Portfolio: Track your fund’s performance and review transaction details via your personalized dashboard.

Investing in mutual funds through SIP is simple, with a quick KYC process and easy-to-use features.