Motilal Oswal debuts ‘consumption’ fund; all you need to know

Motilal Oswal Mutual Fund (MOMF) Monday announced the launch of the Motilal Oswal Consumption Fund, an open-ended equity scheme that aims to capitalise on India’s long-term consumption growth story, which is now entering a more mature phase of luxury and discretionary spending.

The New Fund Offer (NFO) will be open for subscription between October 1 and October 15, 2025. The fund, launched in adherence with the QGLP (Quality, Growth, Longevity, Price) investing framework, will be managed by Niket Shah (chief investment officer and fund manager–equity component), Varun Sharma (fund manager–equity component), Bhalchandra Shinde (associate fund manager–equity component), Rakesh Shetty (fund manager–debt component), and Sunil Sawant (fund manager–overseas component).

According to Motilal Oswal's mutual press release, India’s consumption is undergoing significant changes. Rising incomes, rapid urbanisation, and policy reforms are formalising the economy and creating a unified national market.

Amid global market volatility, India presents a rare, domestically supported investment opportunity. As the world’s most populous country with a young and growing workforce, India benefits from a demographic edge over ageing economies, fostering a large and dynamic consumer base, according to an official release.

Consumption already makes up more than 60% of India’s GDP, serving as a strong domestic backbone. More importantly, spending habits are shifting from essentials to discretionary items and premium products. Consumers are increasingly focussing on quality, brands, and experiences across automobiles, retail, financial services, durables, and lifestyle products. These structural shifts are likely to support India’s long-term growth in consumption, the company stated.

Prateek Agrawal, MD & CEO of Motilal Oswal AMC, said the fund targets India’s evolving consumption landscape. As Indian consumers’ preferences shift beyond basic needs, especially among the upper-middle class seeking a broader array of goods and services, the fund aims to capitalise on these trends. "Using our QGLP investing approach, we plan to build a concentrated portfolio of high-quality businesses that are poised to benefit from these long-term structural changes," he said.

The fund will focus on high-growth sectors within the consumption theme, including organised retail, digital services that facilitate consumption, financial services supporting this growth, and specific segments of durables and apparel.