TATA Asset Management, one of India’s leading fund houses, has launched the country’s first Multicap Consumption Index Fund.
This fund allows investors to gain diversified exposure to large, mid, and small-cap consumption stocks in a single product.
The new fund, TATA BSE Multicap Consumption 50:30:20 Index Fund, is an open-ended scheme designed to track the BSE Multicap Consumption 50:30:20 Index (TRI).
It gives investors an opportunity to participate in India’s growing economy, driven by rising middle-class incomes, a young population, and changing lifestyles. The fund aims to benefit from the steady increase in consumer spending.
Offer Dates: The fund is open for subscription from December 9, 2025, to December 23, 2025.
Why This Fund Stands Out
Consumption has long been a key driver of India’s economy, contributing over 60% of the GDP (Source: Barclays Investment Outlook).
Traditional consumption-focused funds have mostly concentrated on large-cap FMCG or automobile stocks, often missing out on high-growth sectors.
The TATA BSE Multicap Consumption 50:30:20 Index Fund addresses this gap by combining the stability of large-cap stocks with the growth potential of mid- and small-cap stocks.
This ensures a balanced approach, reducing excessive concentration in any single segment or market-cap category.
The underlying BSE Multicap Consumption 50:30:20 Index selects the top 100 companies based on six-month average market capitalization in the consumer discretionary
and FMCG sectors from the BSE 500 universe. This selection helps reduce concentration risks.
Mr. Anand Vardarajan, Chief Business Officer of TATA Asset Management, said:
“Consumption is shifting from basic needs to lifestyle and discretionary spending. Large-caps provide stability, but mid- and small-caps often hold the real wealth-creating potential in emerging themes like quick commerce, travel,
and digital entertainment. The 50:30:20 strategy offers a transparent way to participate in India’s consumption growth without over-concentration.”
Key Benefits of the Fund
Built-in Diversification
Traditional indices are often over 90% large-cap. This fund ensures 50% allocation to mid- and small-cap companies, preventing dependency on just one type of stock.
Broad Sector Coverage
The fund invests in niche sectors often ignored by other indices, such as auto ancillary, digital entertainment, travel services, and internet retail, offering broad growth opportunities.
Capturing the ‘New Age’ Consumer
Rising disposable incomes and a shift towards premium spending make this fund well-positioned to benefit from India’s ongoing ‘premiumization’ trend.
Investment Details:
No entry fee required.
Exit fee: 0.25% if redeemed within 15 days of allotment.
Minimum investment: ₹5,000, with additional investments in multiples of ₹1.
Fund Methodology
Index Composition:
The index consists of the top 100 stocks in consumer discretionary and FMCG sectors of the BSE 500.
Stocks are selected using capped float-adjusted market-cap weighting and classified into large-cap, mid-cap, and small-cap segments in a 50:30:20 ratio.
Weightage:
Based on free-float adjusted market capitalization.
Stocks are categorized as large, mid, or small depending on their inclusion in BSE 100 LargeCap, BSE 150 MidCap, or BSE 250 SmallCap indices.
Rebalancing:
The index is rebalanced semi-annually in June and December.
The top 80 stocks automatically stay in the index, while stocks ranked 81-120 are retained until the index reaches 100 constituents.
