Union Consumption Fund

Union Consumption Fund has delivered negative lump-sum CAGRs across all windows, including -3.5% over 1Y and -0.71% over 5Y, but it has consistently outperformed the NIFTY 50, which posted -11.35% (1Y) and -2.38% (5Y). Alpha is positive over 1Y to 12Y windows, peaking at 6.27% over 1Y, though it turns marginally negative (-0.09%) over 15Y. SIP XIRR data is not available, so a like-for-like comparison with the category's SIP XIRR averages (e.g., 10.7% over 1Y) cannot be made.

The fund shows a Beta of 0.91 with a Downside Capture of 78.96% versus an Upside Capture of 89.02%, indicating it loses less than the benchmark in falling markets but also participates less fully in rallies. Only one drawdown event exceeding 10% has occurred, with a maximum drawdown of just -0.17% that took 137 days to recover. Overall, the risk profile appears defensive relative to the NIFTY 50, with favorable downside protection.

The portfolio holds 43 stocks, with the top 10 accounting for roughly 45% of NAV, led by Eternal Ltd. (6.92%) and Bharti Airtel Ltd. (6.79%). Sector concentration is meaningful, with Retailing (19.5%), Automobiles (16.3%), and Consumer Durables (12.7%) forming the core exposure. The inclusion of Bharti Airtel, a telecom stock, in a consumption-themed fund suggests some flexibility in the theme's definition.

As a sectoral/thematic consumption fund, its performance must be judged against the consumption theme cycle rather than broad market averages, and the absence of XIRR data limits direct peer comparison. Positive alpha over most windows against the NIFTY 50 suggests competent stock selection within the theme. Calendar year returns of 0.3% in 2025 and -3.79% in 2026 indicate weak recent momentum.

This fund suits investors with high risk tolerance who want targeted exposure to India's consumption story and already hold diversified core funds, as sectoral/thematic funds are inherently cyclical. A horizon of at least 5-7 years is advisable to ride through theme downturns, as evidenced by the negative multi-year CAGRs. It should be treated as a satellite allocation rather than a core holding.

• Consistent positive alpha versus NIFTY 50 across 1Y to 12Y windows, peaking at 6.27% over 1Y
• Strong downside protection with Downside Capture of 78.96% versus Upside Capture of 89.02%
• Reasonably diversified portfolio of 43 stocks with no single holding exceeding 7% of NAV

• Negative lump-sum CAGRs across all windows, including -3.5% over 1Y and -0.71% over 5Y, reflecting a prolonged weak phase for the consumption theme
• High sector concentration in Retailing (19.5%) and Automobiles (16.3%) exposes investors to theme-specific downturns