Union Mutual Fund Introduces New Thematic Equity Scheme: 'Union Consumption Fund'

Mumbai, 29 October 2025: Union Mutual Fund has received regulatory approval to launch the Union Consumption Fund, an open-ended equity scheme to benefit from India’s growing consumption-driven economy. The fund will seek long-term capital appreciation by investing in firms that stand to gain from increasing consumer spending and changing lifestyle patterns.

Scheme Objective and Theme

The Union Consumption Fund will follow a consumption-oriented investment theme, investing in companies that are likely to grow along with India’s rapidly accelerating domestic consumption story. Its benchmark index will be the Nifty India Consumption TRI, which tracks leading consumption-related companies across sectors. The investment goal of the fund is to provide long-term wealth creation through selective exposure to equity and equity-related tools of firms involved in the consumption and allied industries.

Investment Strategy and Portfolio Allocation

The fund will have a diversified portfolio with a high allocation of 80-100% in consumption-driven companies’ equities and equity-related instruments. A maximum of 20% can be invested in money market and debt instruments for stability and liquidity, and a maximum of 10% can be invested in REITs and InvITs to maximize yield potential. The thematic coverage will spread across FMCG, automobiles, consumer durables, telecom, media, financial services, healthcare, real estate, and hospitality industry clusters, deeply connected with India’s consumption cycle.

Fund Management and Offer Period

The scheme will be jointly managed by Vinod Malviya and Sanjay Bembalkar, both of whom have more than 15 years of experience in equity research and portfolio management. New Fund Offer (NFO) will be kept open for subscription between three to fifteen working days. Units will be available at ₹10, and the fund shall reopen for continuous transactions within five working days from the allotment date.

Risk Profile and Market Environment

Under the “Very High Risk” category, the fund can be opted for by investors looking for long-term capital appreciation and willing to tolerate volatility in the equity market. The new fund offering arrives at a time when market sentiment is robust, with benchmark indices such as the BSE Sensex trading around 84,450 and the NSE Nifty near 25,850, indicating continued investor optimism towards India’s consumption-driven growth story.

REF: https://www.sebi.gov.in/sebi_data/attachdocs/oct-2025/1761628247495.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations