Union Mutual Fund Filed Draft for Consumption Fund with SEBI

Union Mutual Fund has submitted draft documents for the Union Consumption Fund, an open-ended equity scheme built around the consumption theme. The fund plans to invest mainly in companies linked to everyday spending, discretionary purchases, and related sectors. The draft was dated 10 November 2025. 

NFO Timeline and Unit Price 

As per the filing, the New Fund Offer will open on 1 December 2025 and close on 15 December 2025. Units will be issued at ₹10 during the offer period. The scheme will reopen for regular transactions within five business days after allotment. 

Investment Breakup 

The fund intends to keep 80% to 100% of its assets in equity and equity-linked instruments of companies connected to consumption and allied areas. Up to 20% may go into other equities, and another 0-20% into debt and money market instruments.  

Exposure to REITs and InvITs can reach 10%, and the scheme may use derivatives for hedging and portfolio balancing within the permitted limits. 

Theme Coverage 

The filing lists a broad set of sectors that fall under the consumption theme. These include FMCG, consumer durables, textiles, automobiles, telecom, healthcare, financial services, hospitality, e-commerce, transport, housing, and other segments linked to domestic demand. The universe will be aligned with the sector definitions used in the Nifty India Consumption TRI. 

Plans, Options and Transaction Rules 

Both Regular and Direct Plans will be available with Growth and IDCW options. The exit load is 1% if units are redeemed within one year from allotment and zero afterwards. The minimum investment during NFO and later purchases is ₹1,000, while SIPs start at ₹100 depending on frequency. 

NAV and Disclosures 

The first NAV will be published within 5 business days from allotment. Daily NAVs will be updated on the AMC and AMFI websites. The fund will not be listed on stock exchanges, as it offers ongoing purchase and redemption based on NAV. 

Benchmark and Management 

The benchmark chosen is the Nifty India Consumption TRI. Fund management will be handled by Vinod Malviya and Sanjay Bembalkar, who manage other equity schemes at the fund house. 

Read More: Upcoming NFOs This Week (Nov 17–21)! 

Conclusion 

The draft lays out the structure, allocation limits, timelines and operational rules for the scheme. Since it is a new offering, no past performance data is available. 

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.