NextGen Consumption Fund: Canara HSBC Life Insurance launches NextGen Consumption Fund; who should track, invest in it

Canara HSBC Life Insurance Company Limited on Tuesday announced the launch of the NextGen Consumption Fund, an industry-first offering aimed at capturing India’s fast-evolving consumption landscape shaped by millennials and Gen Z. The new fund will be available under the company’s Wealth Edge and SecureInvest plans, and will remain open for subscription from November 18 to November 24, 2025, at an initial NAV of Rs 10 per unit.

The launch comes at a time when India is accelerating towards its ambition of becoming a $5 trillion economy, with long-term projections placing it on course to achieve a $30 trillion (Rs 2,640 lakh crore) size by 2047. A defining pillar of this trajectory is India’s young demographic—its median age of 28.8 reflects a population with rising disposable incomes, rapid urbanisation and increasing digital adoption. Combined with policy support, such as GST 2.0, and wider access to financial tools, these factors have propelled a robust consumption story.

Market data reinforces this shift. The Nifty India New Age Consumption Index, which mirrors spending patterns of younger consumers, has delivered a strong five-year CAGR of 26.6%, outperforming broader benchmarks including the Nifty 500 TRI (21.1%) and Nifty 50 TRI (18.6%) as of October 31, 2025.

Benchmarked to the same index, the NextGen Consumption Fund is an actively managed investment option that focuses on companies catering to the lifestyles and preferences of India’s emerging consumer classes. The fund’s mandate is built around capturing the multi-trillion-dollar consumption potential expected to unfold over the next two decades.

Key features include a growth-led equity allocation targeting businesses aligned with new-age consumption and digital behaviour. It will maintain a 60–100% exposure to equities, complemented by an allocation of 0–40% to money market instruments and other assets, providing policyholders with diversified participation in the consumption-driven growth cycle.

Commenting on the launch, Jyoti Vaswani, Chief Investment Officer, said the fund aligns strongly with India’s economic and demographic transformation. “We are thrilled to launch the NextGen Consumption Fund, a first-of-its-kind offering in the life insurance industry, aligned with India’s Growth Story. This fund reflects how India’s evolving consumption landscape is being driven by a young, dynamic population and the digital wave,” she said. “Our aim is to enable investors to participate in this transformation in a manner that is both forward-looking and well-rounded.”

The fund will invest across sectors central to India’s consumption momentum—including e-commerce, fintech, automobiles, consumer services, durables, financial services, real estate, telecom and retail, providing broad exposure to companies positioned to benefit from next-generation demand.

Consumption Funds: A look at the existing ones

Consumption funds are a type of thematic mutual fund that primarily invest in the stocks of companies which benefit from consumer spending and demand for goods and services. These funds aim to capitalise on long-term economic growth and increasing disposable incomes by focusing on businesses that cater to essential and discretionary consumer needs. 

The performance trends across consumption-focused funds reveal a clear divide between short-term momentum leaders and long-term compounders. In the near term, Kotak Consumption Fund stands out with a decisive lead in both six-month and one-year returns, supported by its strong positioning in new-age consumption themes. The Bank of India Consumption Fund also shows resilience, emerging as the top performer over one month and maintaining a strong presence in the six-month category.

Over longer horizons, the leadership shifts. Tata India Consumer Fund, Mirae Asset Great Consumer Fund, and Canara Robeco Consumer Trends Fund demonstrate consistent multi-year strength, indicating robust portfolios aligned with durable consumption trends. The five-year table is dominated by SBI Consumption Opportunities and Nippon India Consumption Fund, both delivering impressive compounding.

Overall, ETFs such as those from Kotak, ICICI Prudential, and SBI deliver steady index-aligned gains, particularly over one-year and six-month periods, reflecting broader sector momentum.

Top 5 funds by timeframe

1-Month Returns:
1. Bank of India Consumption Fund – Direct Plan: 0.44%
2. Tata India Consumer Fund – Direct Plan: 0.12%
3. Canara Robeco Consumer Trends Fund – Direct Plan: 0.07%
4. Mahindra Manulife Consumption Fund – Direct Plan: -0.76%
5. Edelweiss Consumption Fund – Direct Plan: -0.83%

6-Month Returns:
1. Kotak Consumption Fund – Direct Plan: 11.12%
2. Bank of India Consumption Fund – Direct Plan: 9.59%
3. Kotak NIFTY India Consumption ETF: 7.91%
4. ICICI Prudential Nifty India Consumption ETF: 7.88%
5. SBI Nifty Consumption ETF: 7.84%

1-Year Returns:
1. Kotak Consumption Fund – Direct Plan: 13.06%
2. Kotak NIFTY India Consumption ETF: 12.64%
3. ICICI Prudential Nifty India Consumption ETF: 12.54%
4. SBI Nifty Consumption ETF: 12.46%
5. Nippon India ETF Nifty India Consumption: 12.43%

3-Year Returns:
1. Tata India Consumer Fund – Direct Plan: 21.11%
2. Mirae Asset Great Consumer Fund – Direct Plan: 19.39%
3. ICICI Prudential Bharat Consumption Fund – Direct Plan: 18.74%
4. Baroda BNP Paribas India Consumption Fund – Direct Plan: 18.47%
5. Kotak NIFTY India Consumption ETF: 18.36%

5-Year Returns:
1. SBI Consumption Opportunities Fund – Direct Plan: 23.89%
2. Nippon India Consumption Fund – Direct Plan: 23.73%
3. Mirae Asset Great Consumer Fund – Direct Plan: 22.24%
4. Canara Robeco Consumer Trends Fund – Direct Plan: 21.10%
5. Tata India Consumer Fund – Direct Plan: 21.06%