Consumption has increased, now is your chance to earn! Union Mutual Fund launches new NFO

Union Mutual Fund has launched a new fund, Union Consumption, an open-ended equity scheme based on a consumption theme. The New Fund Offer (NFO) commenced on December 1, 2025, and will close on December 15, 2025. 

The scheme has been launched at a crucial juncture in India's economy. Over the past year, the government has taken five major steps: tax rate reductions in FY26, changes in GST 2.0, the Eighth Pay Commission, steadily declining inflation, and better coordination efforts by the RBI, along with a good monsoon, are key factors that could significantly impact consumption.

According to Bloomberg data, over the past 19 years, the Consumption Index has outperformed the broader market by a factor of 13. Between 2019 and 2024, the Nifty India Consumption TRI delivered an average equity return of 14.7%, significantly higher than the broader Nifty 500 index's average of 12.5%.

Speaking about the fund, Madhu Nair, CEO of Union Asset Management Company Private Limited (Union AMC), said, "Given the five key structural changes introduced by the Indian government, India appears poised to enter a major consumption transition. 

We believe our RISE framework is best positioned to leverage the full potential of this consumption theme: the growing consumer base, the shift from basic products to premium products, and the digitalization of markets."

Together, these can create one of the most powerful investment strategies that can last for decades. Through Union Consumption Fund, we aim to provide investors with the opportunity to invest systematically and diversified, so that they can participate in this journey of progress, and every rupee they spend contributes to the growth story. 

Union Consumption Fund (UCF) aims to invest in the market across multiple sub-sectors of consumption through its RISE framework, which stands for Reach, Intermediates, Spend Up, and Experience. It aims to understand how Indians live, how they spend, and what they want.

What does RISE mean?

R – Reach: Companies that are making goods and services more accessible – such as consumer durables, packaged food and beverages, and quick-service restaurants.
I – Intermediaries (Facilitators): Businesses that facilitate consumption, including digital platforms, fintech companies, and financial partners.
S – Spend Up (Moving towards Premium): Companies that focus on meeting the aspirations of people in more expensive segments like the SUV market and real estate.
E – Experiences: Areas where spending is driven by lifestyle and experiences such as travel, hospitality and entertainment.

There will be an increase in consumption

According to estimates from the IMF World Economic Outlook data, India's per capita income has nearly tripled since 2008 and is expected to grow another 1.6 times by fiscal year 2030. 

The number of middle-income households, along with upper-middle and high-income households, is projected to increase to 180 million by 2030 from 113 million in 2023, representing a 60% increase in the country's highest-consuming segment.

This is the best option for these investors.

Union Consumption Fund is ideal for investors looking to align their portfolios with the structural changes taking place in India's economy. 

The fund seeks to diversify its exposure to various consumption sectors, from mass markets to premium segments, to capitalize on both stable and fast-growth opportunities. The fund will be managed by Vinod Malviya, Fund Manager, Equity, and Sanjay Bembalkar, Head of Equity, Union AMC.

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