LIC Mutual Fund’s Consumption Fund offers investors a gateway to India’s consumer growth story

LIC Mutual Fund has launched a new thematic equity scheme — the LIC MF Consumption Fund — designed to capitalise on India’s rapidly growing consumption economy. The New Fund Offer (NFO) is open for subscription from October 31 to November 14, 2025, and will reopen for continuous sale and repurchase from November 25. The fund seeks to provide long-term capital appreciation by investing primarily in companies operating across consumption and allied sectors that are benefiting from rising discretionary spending, premiumisation, and lifestyle upgradation in India.

The new fund will be benchmarked against the Nifty India Consumption Total Return Index (TRI) and managed by Sumit Bhatnagar and Karan Doshi. The minimum investment during the NFO is Rs 5,000, with additional investments in multiples of Re 1. Investors can start a daily SIP from Rs 100, a monthly SIP from Rs 200, or a quarterly SIP from Rs 1,000, making it accessible to a wide range of retail investors.

According to the fund house, the scheme aims to allocate 80–100% of its total assets in equity and equity-related instruments, with around 80% exposure to companies within the consumption ecosystem. The remaining up to 20% may be invested in sectors outside the primary theme, providing flexibility to navigate evolving market opportunities.

Yogesh Patil, Chief Investment Officer–Equity, LIC Mutual Fund, said the fund’s launch comes at a time when India’s consumption story is entering a new phase of sustainable, long-term expansion.
“India’s consumption boom is here to stay for a decade or more, supported by strong fundamentals, structural reforms, and stellar GDP growth,” Patil said. “Rising disposable incomes, a rapidly urbanising and aspirational middle class, and the trend of premiumisation across categories will drive a long runway of growth. This shift is visible across sectors — from consumer durables and retail to digital services and personal care.”

RK Jha, Managing Director & CEO of LIC Mutual Fund, added that India’s demographic and economic profile make it one of the most promising consumption-driven markets in the world. “A growing middle class, healthy working-age population, and rising per capita income are fueling a massive expansion in discretionary spending,” he said. “Currently, 31% of India’s population falls into the middle-class segment, and this share is expected to rise steadily, reinforcing India’s position as a consumption powerhouse.”

Jha also highlighted how digitalisation and urbanisation are transforming consumption patterns. “From e-commerce and fintech to food delivery and premium fashion, the digital economy has amplified consumer aspirations. LIC MF Consumption Fund offers investors a chance to participate in this powerful cycle of consumption-led growth,” he said.

Positioning in a Rising Thematic Trend

The launch of LIC’s Consumption Fund aligns with the mutual fund industry’s growing focus on thematic and sector-specific investing, particularly in areas aligned with India’s long-term growth drivers. The fund’s strategy of targeting companies in consumer staples, discretionary sectors, financial services, and retail aims to capture opportunities across the entire consumption value chain.

The consumption theme is also attracting other major fund houses. Invesco Mutual Fund and Motilal Oswal Mutual Fund recently rolled out similar offerings, reflecting a clear trend among asset managers to ride India’s expanding consumer base.

The Invesco India Consumption Fund, managed by Manish Poddar and Amit Ganatra, closed its NFO on October 17. It invests at least 80% of its assets in consumption-linked companies and follows a mix of top-down and bottom-up approaches to identify opportunities.

Likewise, the Motilal Oswal Consumption Fund, managed by Niket Shah’s team, closed on October 15 and invests across sectors such as organised retail, consumer durables, financial services, digital platforms, and lifestyle products.

Capturing India’s consumer transformation

Analysts note that these launches reflect rising investor confidence in India’s multi-decade consumption growth story, which is underpinned by urbanisation, income growth, and changing consumer behaviour. As government reforms like GST rationalisation, infrastructure development, and credit expansion continue to support household spending, consumption-led sectors are likely to remain a cornerstone of India’s economic expansion.

The LIC MF Consumption Fund seeks to offer investors a way to participate directly in this transformation — providing a structured, research-driven approach to benefit from one of the most enduring themes of India’s growth narrative: the rise of the Indian consumer.