Hey everyone!
Lately, I've been exploring different mutual fund categories and came across something that caught my attention—Consumption mutual funds. I started reading more about them, and just 20 characters in, I stumbled upon the axis consumption fund, which seems to be one of the popular options in this space.
Now, I know many of us are into SIPs, and we’re always on the lookout for the Best SIP options with strong long-term potential. So, I thought this could be a great space to start a conversation around these sector-focused funds and see what everyone else thinks!
From what I’ve gathered, consumption mutual funds mainly invest in companies related to FMCG, retail, autos, consumer durables, etc. The idea is that as disposable income and middle-class spending grow in India, these companies could perform well, translating into better returns for the fund investors.
I was specifically looking into the axis consumption fund NAV, and it seems to have shown steady performance over the years, though like any sectoral fund, there’s always some risk due to market cycles.
Do you think it makes sense to diversify a SIP portfolio with a consumption-focused fund like this? Or is it better to stick to more balanced or diversified funds like SBI’s?
Would love to hear your thoughts—whether you’re invested in these funds or just researching. Let’s make this a helpful discussion for those planning their next SIP!
Looking forward to your replies and maybe even learning about some new fund ideas from this thread