Sundaram Consumption Fund is an open-ended equity scheme that primarily invests in companies poised to benefit from consumption-driven demand in India.
The fund aims to generate long-term capital appreciation by focusing on sectors such as consumer staples, services, automobiles, consumer discretionary, and communication.
Key Details:
- Fund Type: Open-ended equity scheme
- Benchmark: NIFTY India Consumption TRI
- Assets Under Management (AUM): ₹1,398.19 crore (as of January 31, 2025)
- Exit Load: 0.5% if redeemed within 30 days of investment
Expense Ratio:
- Regular Plan: 2.21%
Minimum Investment:
- Lump Sum: ₹100
Fund Managers of Sundaram Consumption Fund
Sundaram Consumption Fund is managed by two experienced professionals:
Ratish B. Varier
- Education: Bachelor of Commerce (B.Com) and Master of Business Administration (MBA) in Finance.
- Professional Experience: Mr. Varier has over 15 years of experience in equity fund management. Prior to joining Sundaram Asset Management Company in November 2018, he worked with Mahindra Asset Management and Reliance Life Insurance Company Limited.
Funds Managed:
At Sundaram Mutual Fund, Mr. Varier manages several schemes, including:
- Sundaram Mid Cap Fund
- Multi Cap Fund
- Sundaram Dividend Yield Fund
- Business Cycle Fund
- Sundaram Infrastructure Advantage Fund
Nikunj Gala
- Education: Bachelor of Engineering (B.E) in Information Technology and Master of Business Administration (MBA) from Narsee Monjee Institute of Management Studies (NMIMS), Mumbai.
- Professional Experience: Mr. Gala has a diverse background in the financial sector. Before joining Sundaram Mutual Fund, he held positions at Principal Mutual Fund, ASK Investment Managers, IIFL Institutional Equities, and ICICI Securities.
- Funds Managed: Mr. Gala has been co-managing the Sundaram Consumption Fund since July 2024.
The combined expertise of Mr. Varier and Mr. Gala contributes to the strategic management of the Sundaram Consumption Fund, aiming to capitalize on consumption-led demand in India.
Tax Treatment:
- Long-Term Capital Gains (LTCG): Gains are taxed at 12.5% if the total LTCG exceeds ₹1.25 lakh.
- Short-Term Capital Gains (STCG): Gains are taxed at 20% if units are redeemed within one year of purchase.
Investment Strategy:
The fund focuses on companies likely to benefit directly from consumption-led demand in India, particularly those catering to rural markets.
This includes sectors such as consumer staples, services, automobiles, consumer discretionary, and communication.
Suitability:
This fund is suitable for investors with an advanced understanding of macroeconomic trends who are willing to take selective bets for potentially higher returns compared to other equity funds.
Investors should be prepared for the possibility of moderate to high losses, even when the overall market is performing better.
Conclusion:
Sundaram Consumption Fund has demonstrated consistent performance in the consumption-focused thematic category. Its strategic focus on consumption-driven sectors positions it well to capitalize on India’s growing consumer market.
However, potential investors should be aware of the inherent risks associated with thematic investing and ensure that the fund aligns with their investment objectives and risk tolerance.
Sundaram Consumption Fund Portfolio
As of February 28, 2025, the Sundaram Consumption Fund’s portfolio is structured as follows:
Asset Allocation:
- Equity: 92.71%
Market Capitalization Distribution:
- Large Cap: 72.23%
- Mid Cap: 8.29%
- Small Cap: 12.2%
- Others: 7.29%
Top 10 Equity Holdings:
- Bharti Airtel Ltd. (Telecom Services) – 10.55%
- ITC Ltd. (Diversified FMCG) – 8.45%
- Mahindra & Mahindra Ltd. (Passenger Cars & Utility Vehicles) – 7.13%
- Hindustan Unilever Ltd. (Diversified FMCG) – 5.49%
- Titan Company Ltd. (Gems, Jewellery, and Watches) – 5.18%
- Maruti Suzuki India Ltd. (Passenger Cars & Utility Vehicles) – 5.00%
- Zomato Ltd. (E-retail/E-commerce) – 4.77%
- United Spirits Ltd. (Breweries & Distilleries) – 4.17%
- Safari Industries (India) Ltd. (Plastic Products – Consumer) – 3.75%
- Trent Ltd. (Specialty Retail) – 2.99%
Sector Allocation:
- Consumer Staples: 28.33%
- Services: 16.87%
- Automobile: 16.75%
- Consumer Discretionary: 11.7%
Sundaram Consumption Fund Returns
As of April 8, 2025, the Sundaram Consumption Fund has demonstrated the following performance:
Annualized Returns:
| Time Period | Fund Returns | Category Average | Rank within Category |
| 1 Year | 24.43% | 30.79% | 113/166 |
| 2 Years | 19.11% | 26.78% | 76/140 |
| 3 Years | 17.04% | 19.91% | 56/129 |
| 5 Years | 14.39% | 22.47% | 79/108 |
SIP Returns (as of December 5, 2024):
| Period Invested | Total Investment | Latest Value | Absolute Returns | Annualized Returns |
| 1 Yea | 12,000 | 13,535.97 | 12.80% | 24.41% |
| 2 Years | 24,000 | 30,292.70 | 26.22% | 24.09% |
| 3 Years | 36,000 | 49,186.45 | 36.63% | 21.31% |
| 5 Years | 60,000 | 95,427.08 | 59.05% | 18.60% |
| 10 Years | 1,20,000 | 2,29,729.04 | 91.44% | 12.46% |
These figures illustrate the fund’s performance over various timeframes, providing insights into its growth trajectory and consistency relative to its category peers.
Sundaram Consumption Fund Dividend
Sundaram Consumption Fund offers an Income Distribution cum Capital Withdrawal (IDCW) option, previously known as the dividend option. In this scheme, the fund distributes a portion of its realized profits to unitholders as dividends. The most recent dividend payouts are as follows:
| Dividend Date | Dividend Percentage (%) |
| November 3, 2023 | 18.41% |
| November 9, 2022 | 17.08% |
| April 28, 2021 | 13.63% |
Please note that dividend distributions are contingent upon the fund’s performance and the availability of distributable surplus.
They are not assured and may vary over time. Investors seeking regular income may consider the IDCW option, but it’s essential to understand that dividends are paid from the fund’s net profits, which can impact the Net Asset Value (NAV) accordingly.
For the most current information on dividend declarations and NAV, investors should refer to the official Sundaram Mutual Fund website or consult with their financial advisor.
Sundaram Consumption Fund – Direct Growth
As of April 8, 2025, the Sundaram Consumption Fund – Direct Growth has the following details:
| Time Period | Fund Returns (%) | Category Average (%) | Rank within Category |
| 1 Year | 45.27 | 49.30 | 13/18 |
| 3 Years | 23.06 | 22.24 | 7/14 |
| 5 Years | 21.77 | 22.73 | 10/12 |
| Since Inception | 17.48 | — | — |
Strengths of Sundaram Consumption Fund
1) Thematic Focus on Consumption:
The fund capitalizes on India’s long-term consumption growth story, making it attractive for investors bullish on rising domestic demand.
2) Experienced Fund Management:
Managed by seasoned professionals like Ratish Varier and Nikunj Gala, who bring in-depth sectoral and macroeconomic insights.
3) Consistent Long-Term Performance:
Over longer periods (3-5-10 years), the fund has delivered competitive returns, particularly in the direct plan with lower expense ratios.
4) Diversified Holdings Within the Theme:
While focused on consumption, it includes stocks across sectors like consumer staples, discretionary, telecom, and autos — reducing concentration risk within the theme.
5) SIP-Friendly:
With a low minimum SIP requirement (₹100), it’s accessible for retail investors wanting to invest gradually.
Risks of Sundaram Consumption Fund
1) Sectoral/Thematic Concentration Risk:
Being a consumption-focused fund, it is less diversified than broader equity funds. If consumption sectors underperform, the fund may be more volatile.
2) Market Volatility Impact:
Like any equity fund, it is sensitive to market cycles and macroeconomic trends, especially consumer sentiment, inflation, and interest rates.
3) Underperformance in Bear Cycles:
During economic slowdowns or inflationary periods, consumption-related stocks might underperform, affecting the fund’s performance.
4) High Risk Rating:
The fund is rated “Very High” on the risk-o-meter, making it suitable only for investors with a high risk appetite and long investment horizon.
5) Exit Load for Early Withdrawals:
Redeeming within 30 days incurs an exit load of 0.5%, which may affect short-term investors.
If you’re considering this fund, it’s best suited for long-term goals (5+ years), and should ideally be a part of a diversified portfolio. Want help comparing it with another consumption or thematic fund?
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