Consumption funds: Go for a maximum 5-10% exposure, say experts

Steady economic revival holds the key

Consumption is among the most diversified and sought-after themes in Indian equities. Over the past five years, consumption theme funds have given an annualised category average return of 15.17 per cent, according to the data from Value Research. But this theme has been affected by the Covid-19 pandemic, which impacted jobs and livelihood.
 
Wide theme
 
As the economy grows, the purchasing power of individuals rises. This pushes consumption demand for various goods and services. In the initial phases, fast-moving consumer goods (FMCG) benefit, while over a longer period, discretionary goods’ demand catches up.
 
“Consumption funds constitute a