Union Mutual Fund Filed Draft For Consumption Fund with SEBI

Union Mutual Fund has filed draft papers with the Securities and Exchange Board of India (SEBI) to launch the Union Consumption Fund. It is an open-ended equity scheme that will follow a consumption-based investment theme. 

Units will be offered at ₹10 each during the New Fund Offer (NFO) period, after which the fund will be available for regular purchase and redemption at Net Asset Value (NAV) based prices.

Investment Objective

The scheme’s objective is to provide long-term capital appreciation by investing in companies engaged in consumption and related sectors. These may include firms that directly or indirectly benefit from changes in consumer behaviour, urbanisation, and growth in discretionary spending. There is no assurance that the investment objective will be achieved.

Asset Allocation Pattern

Under normal market conditions, 80% to 100% of the fund’s assets will be invested in equity and equity-related instruments of companies linked to consumption. Up to 20% may be invested in debt and money market instruments, and a maximum of 10% in units of REITs and InvITs. The scheme may also use derivatives for hedging or balancing, with exposure capped at 50% of the equity portion.

Benchmark and Risk Rating

The scheme will benchmark its performance against the Nifty India Consumption Total Return Index (TRI). The index represents 30 companies listed on the NSE that form part of India’s domestic consumption sector. The risk level of the scheme is classified as Very High, matching the benchmark’s risk category.

Key Details and Management

The fund will be managed by Mr Vinod Malviya and Mr Sanjay Bembalkar of Union Asset Management Company. The scheme will offer both Direct and Regular Plans with Growth and Income Distribution options. The minimum initial investment during the NFO is ₹1,000, with additional purchases allowed in multiples of ₹1 thereafter.

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Conclusion

The Union Consumption Fund will invest across multiple consumption-linked industries. It will remain open for daily transactions, with proceeds from redemptions typically processed within 3 working days. The draft Scheme Information Document was dated August 26, 2025.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments in the securities market are subject to market risks, read all the related documents carefully before investing.