Consumption funds: Hold if you can withstand volatility, invest for 5 yrs
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that high oil prices raised transport and packaging costs, squeezing the margins of consumer companies. He said stable raw material prices and supply chains could help margins recover, and that these funds give concentrated exposure to domestic growth.
More of Abhishek's views on mutual funds
The article examines the recent fall in consumption-themed mutual funds amid high crude oil prices, supply disruptions and weaker discretionary spending. It weighs long-term drivers of domestic consumption against the concentration risk of thematic funds, and discusses when existing investors may hold and why new investors may prefer diversified funds.
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Consumption funds: Hold if you can withstand volatility, invest for 5 yrs