Tata India Consumer Fund: Key Insights and Must-Know Details

Introducing the Tata India Consumer Fund

The Tata India Consumer Fund is a thematic mutual fund designed to invest in companies benefiting from the increasing consumption trends in India. Launched on December 28, 2015, this open-ended equity scheme primarily aims to achieve long-term capital appreciation by focusing on equity and equity-related instruments of companies involved in consumption-driven sectors.

With its targeted investment strategy and solid track record, this fund is an attractive option for investors looking to leverage India’s consumption growth story.

In this post, you will see the special characteristics of this fund that will help you decide whether you should add it to your portfolio or not. Let’s begin the analysis of this fund.

Key Features of the Tata India Consumer Fund

Here is a main point that should be understood clearly:

Investment Objective

The primary aim of the Tata India Consumer MF is to provide long-term capital growth by investing at least 80% of its assets in equities of companies within the consumption sector. This includes sectors such as consumer goods, retail, and services.

How Does the Performance of Tata India Consumer Fund Look?

The fund has delivered strong returns over different time frames:

• 1-Year Return: Around 45. 51%
• 3-Year Return:Around 22. 63%
• 5-Year Return:Around 18. 76%
• Since Launch:Around 19. 12%

The table below shows the fund’s enhanced performance as compared to the benchmark index, the NIFTY India Consumption Total Return Index, and therefore its capacity to produce a good return on investment.

Expense Ratio

The direct plan expense ratio of the Tata India Consumer Mutual Fund is 0%. 80%, which is below the 0% average recorded for the category. 92%. This fact remains in conflict with another principle, that is the competitive fee structure, which makes it possible for a larger share of the returns to be retained thus making the fund more profitable.

Fund Size

This is fund management of assets of approximately ₹ 1,895 crore as of 31st March 2024. 39 crore, which is a clear indication of investors’ growing interest and the rise in demand.

Minimum Investment

The minimum investment in a lump sum for the Tata India Consumer Fund is ₹5,000 whereas for subsequent investment ₹1,000 is required. It also offers a low cost of investments where they can begin with a SIP at ₹100 which makes it easier for the consumers.

Exit Load

Say for instance the investments in the fund are made with a long-term perspective in mind then the fund charges an exit load of 0. The next was the time for redemption, which they set at 25 per cent for those shares that are redeemed within the first 30 days from the date of investment, this helps to curb short-term trading.

Why Invest in the Tata India Consumer Fund?

India is on the rise of consumption growth that will help multi-iconic brands to capitalize so that they can diversify and massively expand.

Overall growth and increasing consumer expenditure in India make it possible for investors to capture growth in sectors that are expected to surge in the country through this fund. Combined with a rising middle class and improved disposable income the fund is well-placed to benefit from consumption-led growth.

Let’s see some strong reasons to add this fund to your portfolio:

1. Strong Historical Performance: The Tata India Consumer MF has exhibited superior performance to the benchmark as well as peers and offered a standard choice to investment holders with high risk-adjusted returns. This evidence is its ability to manage economic forces, risks and opportunities in the market to deliver great results as it is evidenced in its next section.
2. Diversification Benefits: The fund covers various sectors that are related to consumption and through diversification, the risk is well distributed thus making your investment portfolio more balanced. The expansion across industries makes it possible to get steadier results on a regular basis.
3. Professional Management: The fund is worked by when experienced managers who actually have a good knowledge about the market and consumption sector. This makes them make strategic decisions that cover up opportunities for growth and risks that may be around.
4. Long-Term Growth Potential: It will create an investment vehicle where long-term investors will invest in India’s consumption sector growth in the long run. Such an opportunity is especially suitable for investment in the early stages as the market that offers this type of service is constantly expanding.

Who Should Invest in Tata India Consumer Fund?

The Tata India Consumer Scheme is for those investors who believe in the future consumption scenario of India and wish to take advantage of any improvement in consumption patterns.

Here are the types of investors who may find this fund particularly suitable:

1. Long-Term Investors: The fund manages capital under an objective of long-term capital appreciation primarily through investments in equities of companies that operate in the consumption sector. Those investors willing to hold their stocks for at least 5 years they stand to gain from the growth aspect of stock investments – which the unpredictable market does not affect in the same way as short-term investments.
2. Growth-Oriented Investors: The fund is suitable for those opting to explore sectors that are likely to respond to growth-related calls. Considering the growth of the Indian middle class and the rise in consumer expenditure, this fund aims at investments in those companies that may have the potential to benefit from such trends; thus, this may be suitable for those investors who are interested in making good and fast money.
3. Investors Looking for Diversification: Investing through the Tata India Consumer Fund means exposure to different companies within the consumption theme but at the same time with diversification. This can also assist in managing risks that are associated with investing in stocks, or individual sectors.
4. Investors with a Moderate Risk Appetite:High risk is attributed to the fact that the fund invests in equity but it invests in the consumption sector, in highly developed companies reducing the volatility that is often associated with other sectors. This fund may suit those investors who are willing to take moderate risks and would like to get possibly higher yields as a result.
5. SIP Investors:The Tata India Consumer Mutual Fund offers an opportunity for new Investors whose capital to invest is limited to the minimum amount of Rs 100 through a SIP Investment Schedule.
6. Investors Seeking Professional Management:Administered by highly qualified staff and recommended by Yong Sonam Udas, this fund receives opinions and guidance on the choice of good companies in which to invest. This fund will be beneficial to the investors, who do not have time to select shares to invest in and who would rather somebody else manage their money.
7. Tax-Conscious Investors:It is liable to capital gains tax for which short-term gains are taxed at a rate of 15% in the case of early redemption within one year. Extra profits over ₹ 1 lakh are also taxed at a rate of 10%. For a long-term investment strategy that is not sensitive to taxes, this fund could be used as part of a portfolio strategy.

Summary

The Tata India Consumer Mutual Fund offers a strong opportunity for investors to tap into India’s growing consumption sector while aiming for long-term capital appreciation. You are likely to get more benefits if you invest via   while keeping the investment duration up to 7 years.

With its proven track record, professional management, and diversification benefits, this fund could be a valuable addition to your investment portfolio.

By matching your investments with India’s economic growth, the Tata India Consumer MF allows you to work towards achieving your financial goals quickly.