LIC Mutual Fund Launches New Consumption Fund: A Long-Term Bet on India's Growing Consumer Story

In a move aligned with India’s expanding consumer-driven economy, LIC Mutual Fund has introduced a new equity scheme — the LIC MF Consumption Fund. This newly launched fund aims to capitalize on the nation’s rising consumption trends, driven by increasing incomes, urbanization, and a growing youth population. The New Fund Offer (NFO) is open for subscription until November 14, 2025, giving investors a new avenue to benefit from India’s long-term growth story.

What Is the LIC MF Consumption Fund?

The LIC MF Consumption Fund is an open-ended equity scheme that focuses primarily on companies benefiting from India’s consumption boom. The fund seeks to generate long-term capital appreciation by investing 80% to 100% of its portfolio in equity and equity-related instruments of businesses linked to the consumption sector.

This includes firms in industries such as FMCG (Fast-Moving Consumer Goods), automobiles, consumer durables, retail, and electronics — all of which are expected to perform strongly as consumer demand continues to rise.

The fund’s benchmark index will be the Nifty India Consumption Total Return Index (TRI), ensuring that its performance is measured against a comprehensive market standard. The fund will be jointly managed by Sumit Bhatnagar and Karan Doshi, two experienced professionals from LIC Mutual Fund.

Key Investment Details

• NFO Period: Open until November 14, 2025

• Minimum Investment (Lump Sum): ₹5,000

• SIP Investment: ₹100 per day, ₹200 monthly, or ₹1,000 quarterly

• NAV-Based Investment Starts: November 25, 2025

The fund also allows up to 20% allocation in companies outside the consumption theme, providing a degree of diversification. This means the portfolio may include firms from various market capitalizations — large-cap, mid-cap, and small-cap segments.

Why LIC Launched This Fund

According to LIC Mutual Fund, India’s consumption outlook remains positive thanks to multiple structural factors:

• Rising disposable incomes among households

• Rapid urbanization and digital adoption

• Younger demographic contributing to higher spending patterns

• Expected boost in consumption due to GST rate reductions

These factors collectively create a favorable environment for companies focused on products and services consumed by India’s growing middle class. The fund aims to leverage this trend to deliver long-term wealth creation opportunities for investors.

Understanding the Consumption Theme

The consumption sector is one of the broadest and most dynamic themes in the Indian equity market. It covers a wide range of industries that benefit directly from domestic demand — from daily essentials to lifestyle products.

Some examples include:

• FMCG: Companies producing everyday goods like food, beverages, and personal care products.

• Auto and Auto Ancillaries: Firms manufacturing vehicles and related components.

• Consumer Durables & Electronics: Brands selling home appliances, gadgets, and tech-driven consumer goods.

• Retail & E-commerce: Businesses catering to growing online and offline shopping demand.

With consumption expected to remain a key growth driver for India’s economy, investing in this theme provides exposure to sectors that are likely to benefit from long-term structural trends.

Should You Invest in the LIC MF Consumption Fund?

Market experts believe that the reduction in GST rates and the steady improvement in purchasing power can further accelerate consumption growth in India. As a result, consumption-oriented companies may deliver strong performance in the coming years.

If your investment portfolio lacks exposure to the consumption theme, this fund can be a suitable addition for long-term wealth building. However, since it is an equity-oriented thematic fund, investors should:

• Have a long-term horizon (5 years or more).

• Be prepared for short-term volatility.

• Consider consulting a registered financial advisor before investing.

About LIC Mutual Fund

Established in 1989, LIC Mutual Fund is one of India’s oldest and most trusted fund houses. It offers a wide range of schemes across equity, debt, and hybrid categories. The new Consumption Fund adds to its diverse portfolio, catering to investors who want to participate in India’s expanding consumption story.

Final Takeaway

The LIC MF Consumption Fund offers investors an opportunity to invest in India’s robust consumption growth story — a trend expected to strengthen further as income levels rise and consumer preferences evolve.

For those looking to diversify their equity portfolio with a thematic fund focused on long-term structural growth, this new offering from LIC Mutual Fund could be a compelling choice.