mutual fund
Union Mutual Fund has launched a new fund, Union Consumption. Which is an open-ended equity scheme based on the theme of consumption. This New Fund Offer (NFO) has started from December 1, 2025 and will close on December 15, 2025. This scheme has been launched at a time when India’s economy is at a very important stage. In the last one year, the government has taken a total of 5 major steps. Tax rate reduction in FY26, changes made in GST 2.0, 8th Pay Commission, continuously decreasing inflation and better coordinated efforts by RBI along with better monsoon are the main factors which can bring a huge change in consumption.
According to a Bloomberg report, over the last 19 years, the consumption index has outperformed the market at large by 13 times. Over the period 2019 to 2024, Nifty India Consumption TRI has delivered an average return on equity of 14.7%, which is higher than the 12.5% average of the broader Nifty 500 index.
Talking about this fund, Madhu Nair, CEO, Union Asset Management Company Pvt Ltd (Union AMC) said that India is about to enter a period of major transformation in consumption, given the 5 major structural changes introduced by the Government of India. We believe our RISE framework is best positioned to capture the full potential of this consumption theme. Growth in the consumer class, shift from ordinary products to premium products and digitalisation of markets.
All these together can become one of the most powerful investment strategies that can last for many decades. Through Union Consumption Fund, we want to provide investors with an opportunity to invest systematically and diversifiedly, so that they can become partners in this journey of progress and every rupee they spend can contribute to the progress story. Union Consumption Fund (UCF) aims to invest across markets spanning multiple sub-sectors of consumption through its RISE framework, i.e. Reach, Intermediates, Spend Up and Experience. Its goal is to understand how Indians live. How they spend and what they want.
What does RISE mean?
- R – Reach (Penetration): Companies that are making goods and services more accessible – such as consumer durables, packaged foods and quick-service restaurants.
- I – Intermediates (Facilitators): Businesses that facilitate consumption include digital platforms, fintech companies and financial associates.
- S – Spend up (moving up premium): Companies that focus on fulfilling the desires of people in more expensive areas like the SUV market and real estate.
- E – Experience: Sectors where spending is driven by lifestyle and experiences such as travel, hospitality and entertainment.
Consumption will increase
According to estimates from IMF World Economic Outlook data, India’s per capita income has increased nearly three times since 2008 and is likely to increase further by 1.6 times by fiscal year 2030. The number of middle-income households, along with upper-middle and upper-income households, is projected to grow from 113 million in 2023 to 180 million by 2030, representing a 60% increase in the country’s highest consuming segment.
Best option for these investors
Union Consumption Fund is best suited for investors who want to align their portfolio with the structural changes taking place in the Indian economy. The plan seeks to ensure diverse participation across various consumption segments, from mass markets to premium categories, to capture both stable and fast growth opportunities. The management of this scheme will be handled by Vinod Malviya, Fund Manager Equity, and Sanjay Bembalkar, Head – Equity, Union AMC.