Union Mutual Fund has launched a new New Fund Offer (NFO) called the Union Consumption Fund.
This is an open-ended equity scheme that focuses completely on the consumption theme.
The fund has been introduced at a time when the economy is being closely watched. According to the fund house, Indian consumers are changing their lifestyle, needs,
and spending patterns, which is expected to bring major economic changes.
This fund aims to benefit from these upcoming changes. Investors can invest in this NFO till 15th December, after which unit allotment will begin.
Where the Fund Will Invest
The fund will invest in companies that are likely to grow due to:
Changing consumer aspirations
Evolving lifestyles
Rising consumption demand
These companies are expected to benefit the most as consumer spending increases.
Key Government Initiatives Supporting Consumption
Madhu Nair, CEO of Union Asset Management Company, said that five major government initiatives will drive consumption growth. These include:
Reduced tax rates in the current financial year
GST 2.0 reforms
Implementation of the 8th Pay Commission
Continued low inflation
Coordinated actions by the RBI
According to him, if these factors combine with a good monsoon, consumption in the country may rise significantly.
The fund will be managed by Vinod Malviya and Sanjay Bembalkar, and its performance will be compared with the Nifty India Consumption TRI.
Asset Allocation Strategy
The Union Consumption Fund will follow a special RISE framework:
Reach
Intermediates
Spend Up
Experience
This framework helps the fund understand how Indian consumers live, spend, and aspire.
The scheme will invest:
80–100% in equity and equity-related instruments of consumption-focused companies
0–20% in equity instruments of companies outside the consumption sector
0–20% in debt and money market instruments
0–10% in units of REITs and InvITs
Minimum Investment Required
To start investing in this fund, the minimum investment amount is ₹1,000. Amounts above this can be invested in multiples of ₹1.
For SIP investments, the minimum monthly amount is ₹500, and additional investments can also be made in multiples of ₹1.
