Private consumption is the new index to track for investors. India’s growing consumption cycle is attracting people, as it now contributes 60 per cent to the annual GDP, and spurs economic growth. According to Value Research India, the thematic mutual funds that connect to it, gave returns of 15.54 per cent over the past three years, and 17 per cent over the past five years (as on 15 December 2025. This explains why more asset management companies are showing increasing interest in entering this segment.
Tata Asset Management, one of India’s leading fund houses, announced the launch of the country’s first multi-cap consumption index fund, which hopes to offer investors a diversified exposure to large cap, midcap, and small cap consumption stocks. The multi-cap (50:30:20l 50 per cent in large caps, and 20 per cent in small caps) open-ended scheme seeks to replicate, and track the BSE (Bombay Stock Exchange) Multicap Consumption 50:30:20 Index, and combine stability with growth opportunities. Recently, Union Mutual Fund launched a similar fund to ride India’s growing consumption cycle.