NFO Alert: Union Mutual Fund Launches Consumption Fund

Union Mutual Fund introduces, Union Consumption Fund, which focuses on companies operating in sectors tied to consumer demand, a bet on increased spending power, changing lifestyles, and India’s domestic consumption growth.  

The fund aims to provide investors with a diversified, equity-thematic route to benefit from consumer-driven economic expansion. The fund will be open for subscription from December 1 to December 15, 2025. 

Key Features 

The scheme is categorised as “Equity: Thematic: Consumption” and can be accessed via the direct route. Its minimum lump-sum investment requirement is ₹1,000. The NAV will be calculated on daily basis. The scheme offers Growth and IDCW plans. 

The fund is open-ended with no fixed lock-in period; redemptions within the 1 year carry a 1% exit load. The benchmark for the fund is the NIFTY India Consumption TRI. 

Investment Strategy 

The scheme aims for long-term capital appreciation by investing in companies directly or indirectly involved in the consumption sector and its allied industries. These companies are expected to benefit from changing consumer aspirations, evolving lifestyles, and general growth in consumption-led demand. 

Risk & Suitability 

Being an equity-thematic fund focused on consumer sectors, the scheme carries a “Very High” risk rating, reflecting potential volatility due to cyclicality of consumer demand and sector concentration.  

The scheme will be managed by Mr Vinod Malviya and Mr Sanjay Bembalkar. 

Read More: Best International Mutual Funds in India for Dec 2025: Mirae Asset NYSE FANG+ETF FoF, Edelweiss US Technology Equity FOF and More! 

Conclusion 

For investors aiming to tap into India’s growing consumer demand through a structured and low-entry-threshold vehicle, the Union Consumption Fund offers a compelling option. The fund’s thematic focus and flexible entry conditions make it accessible, though prospective investors should recognise the inherent volatility and plan for a long-term holding period. 

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 are subject to market risks, read all the related documents carefully before investing.