Motilal Oswal Consumption Fund (Direct – Growth): Is This Thematic NFO Right For You?
Synopsis: Motilal Oswal Consumption Fund – Direct Plan – Growth is a thematic equity NFO that aims to mirror the
NIFTY India Consumption TRI. The NFO closes on 15 Oct 2025 and units are slated for allotment on 23 Oct 2025.
Minimums are investor-friendly (SIP ₹500, lump sum ₹1,000). The fund carries a Very High risk rating and an
exit load of 1.00% (or more as per final SID). It offers focused exposure to India’s consumption theme—powerful over cycles,
but more volatile than diversified large-cap indices.
Quick Overview
This is a passive/thematic index product that seeks to track the NIFTY India Consumption TRI, capturing listed companies
that benefit from India’s structural consumption growth—FMCG, consumer discretionary, retail, autos, consumer durables, etc.
Thematic funds can outperform in certain phases but may see deeper drawdowns when the theme cools off. Consider it a
satellite holding alongside a diversified core (e.g., Nifty 50 / Flexi-cap).
Fund Features
| Parameter | Details |
|---|---|
| Scheme Name | Motilal Oswal Consumption Fund – Direct Plan – Growth |
| Category / Type | Equity – Thematic (Consumption) / Open-ended index fund |
| Benchmark | NIFTY India Consumption Total Return Index (TRI) |
| NFO Window | Launch: 01 Oct 2025 • Close: 15 Oct 2025 • Allotment: 23 Oct 2025 |
| Minimum Investment | Lump sum ₹1,000 • SIP ₹500 |
| Exit Load | 1.00% (or as per final SID) |
| Riskometer | Very High |
Consumption Theme: Category/Benchmark Experience
The fund is new; the figures below reflect indicative category/benchmark trends for consumption-focused indices.
| Period | CAGR / Trend (Indicative) | Comment |
|---|---|---|
| 15 Years | ~13.6% | Strong long-term compounding with cycles |
| 10 Years | ~14.7% | Benefited from premium consumer names |
| 7 Years | ~17.1% | Recent cycle tailwinds visible |
| 5 Years | ~20.8% | Consumption rally + re-rating |
| 3 Years | ~16.0% | Healthy, but theme can be patchy |
| 1 Year | ~-3.8% | Short-term phases can underperform |
Alternatives in the Category (Active/Index)
Investors also look at other consumption-focused funds. Note: different strategies (active vs index) and portfolio mixes can
lead to return dispersion.
| Fund | Type | Indicative 5Y Returns | Notes |
|---|---|---|---|
| Nippon India Consumption Fund – Direct Growth | Active / Thematic | ~24.8% | Aggressive bet; manager-driven |
| ICICI Pru Bharat Consumption Fund – Direct Growth | Active / Thematic | ~21.8% | Broader consumption basket |
| Mirae Asset Great Consumer Fund – Direct Growth | Active / Thematic | ~23.6% | Blend of staples & discretionary |
Pros
- Targeted exposure to India’s long-term consumption story.
- Simple, rules-based approach by tracking a well-known TRI index.
- Low entry barriers (SIP ₹500, lump sum ₹1,000) for gradual allocation.
- Can complement a diversified core as a satellite bet.
Cons / Risks
- Theme concentration: underperforms when consumption lags or valuations de-rate.
- Very High risk—drawdowns can be steeper than diversified large-cap indices.
- NFO—no live tracking-difference/expense history yet.
- Index may be heavy in staples, limiting upside in certain cycles.
Who Should Consider It?
- Investors with a diversified core already in place (e.g., Nifty 50/Flexi-cap) seeking satellite thematic exposure.
- Those with a 7–10+ year horizon and tolerance for theme-specific ups & downs.
- SIP allocators who want to average through cycles rather than time entries.
Illustrative SIP Scenarios (Hypothetical)
For illustration only; actual results will depend on market performance, index composition, expenses & tracking difference.
| SIP Amount | Tenure | Assumed CAGR | Invested | Corpus (Approx) |
|---|---|---|---|---|
| ₹2,000/month | 10 years | 12% | ₹2.40 lakh | ~₹4.6–4.8 lakh |
| ₹5,000/month | 15 years | 12% | ₹9.0 lakh | ~₹25–27 lakh |
Final Verdict
The Motilal Oswal Consumption Fund (Direct – Growth) offers a clean, index-linked route to play India’s
rising consumption. Treat it as a satellite allocation (not a core replacement). If you already hold broad
market funds, adding a modest exposure here can enhance thematic participation—provided you accept higher
volatility and stick to a long-term SIP/goal-based plan.
Disclaimer: This review is for educational purposes only and is not investment advice. Mutual fund investments are subject
to market risks. Read all scheme documents carefully. Past category/benchmark performance does not guarantee future results.
Consult a SEBI-registered advisor before investing.
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