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Consumption Funds Show Wide Three-Year SIP Return Gap
Consumption funds invest in companies that sell products and services people use.
There are 37 such funds in the Value Research data list.
Over three years, only two funds produced SIP returns above 10%.
HSBC Consumption Fund had the highest return at 12.33%.
Tata India Consumer Fund was close behind at 12.20%.
SBI Consumption Opportunities Fund delivered only 0.42%.
Different choices of stocks helped some funds perform better than others.
Auto companies did well, while some FMCG companies performed less strongly.
Past returns do not guarantee future results because thematic funds can rise and fall sharply.
Only HSBC Consumption Fund and Tata India Consumer Fund delivered over 10% three-year SIP returns.
HSBC Consumption Fund led with 12.33%, followed by Tata India Consumer Fund at 12.20%.
SBI Consumption Opportunities Fund recorded the lowest return at 0.42%, while ABSL Consumption Fund returned 4.77%.
Performance differed because stock selection mattered, with auto stocks outperforming and some FMCG stocks lagging.
Investors should not rely solely on past performance because thematic funds can be more cyclical than the broader market.
- Who
- Investors in thematic consumption mutual funds, including HSBC Consumption Fund, Tata India Consumer Fund, SBI Consumption Opportunities Fund and ABSL Consumption Fund.
- What
- Three-year SIP returns varied sharply among consumption funds, ranging from 0.42% to 12.33%.
- Where
- India’s consumption-focused mutual-fund market.
- When
- The data is stated to be as of 19 August 2026, covering the preceding three years.
- Why
- Returns differed because consumption stocks performed unevenly and fund portfolios made different stock selections and sector allocations.
Active management
Passive investing
Portfolio selection
Active management
Active managers choose individual securities and set allocations based on their own assessment of companies.
Passive investing
Passive funds track consumption indices, with allocations typically linked to stocks’ free-float market capitalisation.
Performance advantage
Active management
Different stock selections may help active funds outperform when performance diverges significantly among consumption stocks.
Passive investing
There is no clear trend showing that passive funds consistently outperform active funds, or vice versa.
Key facts
- Funds assessed
- Value Research listed 37 thematic consumption funds.
- Highest return
- HSBC Consumption Fund delivered a 12.33% three-year SIP return.
- Second-highest return
- Tata India Consumer Fund delivered a 12.20% three-year SIP return.
- Lowest return
- SBI Consumption Opportunities Fund delivered a 0.42% three-year SIP return.
- Other cited return
- ABSL Consumption Fund delivered a 4.77% three-year SIP return.
- HSBC portfolio
- HSBC Consumption Fund held 97.16% in equities and the remainder in cash.
- SBI portfolio
- SBI Consumption Opportunities Fund held 98.2% in equity, 0.1% in debt and 1.7% in cash and cash equivalents.
- Data source
- Value Research data for direct plans, dated 19 August 2026.
Quotes
Nilesh D Naik
Head of Mutual Funds at PhonePe
“While the Nifty Consumption Index has delivered an average absolute return of 18%, the top third of these stocks saw an average appreciation of 38%, compared to near‑zero growth for the bottom third”
livemint.com
“The auto sector has been a clear outperformer within the Nifty Consumption Index, while certain FMCG names have lagged over the past three years”
livemint.com
