HDFC Consumption Fund
Direct · GrowthAI Summary
HDFC Consumption Fund has underperformed its category peers on SIP XIRR, with 1Y at 3.03% and 3Y at 3.32% versus category averages of 10.29% and 16.06% respectively. However, against the NIFTY 50 benchmark, the fund shows positive alpha of 2.23% over 3Y and 2.29% over 5Y, with lump-sum CAGRs of 9.33% and 7.1% versus the benchmark's 7.27% and 4.3% over the same periods. The weak recent XIRR stems from muted returns in 2025 (0.06%) and 2026 (-3.94%) following strong gains in 2023-2024.
The fund's maximum drawdown of -0.23% masks an unusually long drawdown duration of 554 days with no recovery yet recorded, indicating a prolonged stagnant period rather than a sharp crash, alongside one drawdown event exceeding 10%. Calmar ratios of 0.42 (1Y) and 0.47 (3Y) suggest modest risk-adjusted returns relative to the depth of drawdowns. Downside capture of 73.96% (3Y) and 72.71% (5Y) shows the fund falls notably less than the NIFTY 50 in declining markets, a defensive trait consistent with its low beta of 0.77.
The portfolio is diversified across 45 stocks, but the top 10 account for roughly 51% of NAV, led by Eternal (9.56%), Mahindra & Mahindra (8.26%), and Hindustan Unilever (7.39%). Sector exposure is concentrated in Automobiles (22.7%) and Retailing (19.2%), which together form over 40% of the portfolio, with meaningful positions in consumer durables, FMCG, and telecom. Four automobile names in the top 10 amplify cyclicality risk tied to rural and urban consumer demand.
The fund trails the sectoral/thematic category significantly on SIP XIRR at all horizons shown, lagging the 3-year category average of 16.06% by nearly 13 percentage points. Lump-sum performance is more respectable, beating NIFTY 50 point-to-point only in recent windows (3Y and 5Y CAGR), while 15-year alpha is marginally negative at -0.27%. Calendar year returns show high variance (16.95% in 2023 to -3.94% in 2026), typical of thematic funds but indicating inconsistent outcomes.
This fund suits investors seeking a targeted consumption-theme allocation as a satellite holding, not a core portfolio component, given the concentrated sector risk. A horizon of at least 5-7 years is advisable, as the theme has historically delivered positive alpha over multi-year windows but with prolonged flat stretches like the current 554-day drawdown. Investors should have high risk tolerance for cyclicality and accept that recent SIP returns are far below category averages.
- Consistent defensive profile with downside capture of 73.96-72.71% and beta around 0.77 across horizons, cushioning losses in weak markets
- Positive alpha versus NIFTY 50 over 3Y (2.23%) and 5Y (2.29%), with lump-sum CAGRs beating the benchmark at each of these horizons
- Strong performance in 2023-2024 (16.95% and 23.85% calendar year returns) demonstrating upside potential when the consumption theme works, with only 1.11% expense ratio for a Direct plan
- SIP XIRR of 3.03% (1Y) and 3.32% (3Y) trails category averages of 10.29% and 16.06% by a wide margin
- Heavy sector concentration in Automobiles (22.7%) and Retailing (19.2%) plus an unresolved 554-day drawdown with no recovery signals prolonged underperformance risk
Generated on 07-11-2026, 3:16 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.26 L | 9.3% | -28.4% | 68.8% |
| 3 Years | ₹36.00 L | ₹37.82 L | 3.1% | -2.6% | 6.8% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 9.3% | 14.3% | 10.3% | -5.0% |
| 3 Years | 3.1% | 11.0% | 16.1% | -7.9% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 9.8% | 4.3% | -13.2% | 55.3% | 0.20 | 0.49 | 67% | — | — |
| 3 Years | 11.0% | 10.9% | 7.5% | 14.1% | 2.25 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -1.81 | 0.91 | 87.0% | 89.3% | -3.0% | -1.9% |
| 3 Years | +2.01 | 0.77 | 78.9% | 74.0% | 10.3% | 8.8% |
| 5 Years | +2.16 | 0.77 | 79.8% | 72.7% | 7.7% | 5.2% |
| 7 Years | +1.07 | 0.77 | 79.8% | 72.7% | 5.4% | 3.7% |
| 10 Years | +0.29 | 0.77 | 79.8% | 72.7% | 3.8% | 2.6% |
| 12 Years | -0.02 | 0.77 | 79.8% | 72.7% | 3.1% | 2.1% |
| 15 Years | -0.33 | 0.77 | 79.8% | 72.7% | 2.5% | 1.7% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Bharti Airtel Ltd. | 11.31% |
| 2 | Eternal Limited | 8.95% |
| 3 | Mahindra & Mahindra Ltd. | 7.93% |
| 4 | Hindustan Unilever Ltd. | 6.90% |
| 5 | Titan Company Ltd. | 4.27% |
| 6 | Godrej Consumer Products Ltd. | 3.55% |
| 7 | Vishal Mega Mart Limited | 3.33% |
| 8 | Asian Paints Limited | 2.93% |
| 9 | Bajaj Auto Limited | 2.92% |
| 10 | Maruti Suzuki India Limited | 2.85% |