Tata BSE Multicap Consumption 50:30:20 Index Fund - Invest in India’s Everyday Consumption Story

Consumption has always been at the heart of India’s economy, and today, it is stronger than ever.

• Private Final Consumption Expenditure (PFCE) contributes 61.4% of India’s GDP, one of the highest in the last two decades. [Source: Economic Times]

• India’s median age will be 31 by 2030, and this relatively young population may continue to spend more on lifestyle categories. [Source: World Economic Forum]

• Non-food spends now account for 53% of rural and 60% of urban consumption, highlighting a shift toward lifestyle and aspirational categories. [Source: MOSPI]

• Rising incomes, urbanisation and digital access continue to drive consumption across categories.

Consumption in India has expanded beyond staples. It now includes mobility, EVs, QSRs, travel, entertainment, beauty, electronics, home improvement, personal care, retail, digital services and more, making it a broad and structural theme.

Several long-term shifts make this theme relevant today.

• The urban consumer class is growing at around 6% each year, creating more aspirational households. [Source: World Economic Forum]

• Organised retail is expected to more than double by 2030, supported by digital payments and modern retail formats. [Source: Fortune India]

• Categories such as OTT, gaming, quick-commerce and QSRs (Quick Service Restaurants) are becoming mainstream.

• Lifestyle spending such as beauty, accessories, home décor, travel and entertainment is rising faster than spending on basic essentials.

India is not only consuming more, but it is consuming differently. This makes the consumption theme deeper and more diverse than ever before.

To help investors participate in this vast and evolving theme, Tata Mutual Fund presents Tata BSE Multicap Consumption 50:30:20 Index Fund, a simple and transparent index fund designed to capture India’s consumption universe.

The fund mirrors the BSE Multicap Consumption 50:30:20 Index (TRI), which represents 100 companies linked to consumption across categories such as lifestyle, personal care, mobility, entertainment, retail, durables, QSRs and FMCG.

Here are four key reasons that set this fund apart.

1. India’s First Multicap Consumption Index Fund

   This is the first fund in India that combines the consumption theme with a structured 50:30:20 multicap framework.
    

2. Captures One of the Broadest Consumption Universes

   Unlike other consumption indices that focus mainly on FMCG, this fund covers a wide range of categories that reflect real and modern consumption patterns in India.
    

3. Multicap Structure for Balanced Exposure

   The fund invests across:

   • Large caps (established consumer brands)

   • Mid caps (growing category leaders)

   • Small caps (emerging players in new-age consumption)

     This ensures broad and meaningful participation across company sizes.
      

4. Passive Index-Based Approach for Transparency and Lower Cost

   Since the fund replicates an index, it offers:

   • Transparency in portfolio construction

   • Rule-based selection without subjective bias

   • Lower cost compared to active thematic funds

   • Semi-annual updates to stay aligned with the market

      

The fund follows a fixed allocation:

• 50% Large Cap

• 30% Mid Cap

• 20% Small Cap

This creates a balanced blend of stability, growth and innovation.

1. Identify consumption-linked companies from the BSE 500 universe.

2. Rank them based on average six-month total market capitalisation.

3. Select the top 100 companies for the index.

4. Apply float-adjusted market-cap weights while maintaining the 50:30:20 allocation.

5. Reconstitute semi-annually.

This process keeps the index objective, transparent and updated.

This fund may suit investors who:

• Want long-term exposure to India’s consumption theme

• Prefer a simple, rule-based index approach

• Want diversified exposure across large, mid and small companies

• Are looking to add thematic allocation to a broader portfolio

• Have a long-term investment horizon

However, before investing, investors should consult their financial adviser for personalised guidance.

India’s consumption story is becoming bigger, broader and more exciting. As aspirations grow and lifestyles evolve, consumption continues to be a major driver of economic growth.

Tata BSE Multicap Consumption 50:30:20 Index Fund offers a simple, transparent and diversified way to participate in this long-term theme through a structured index approach.

So, what are you waiting for? Start your investment journey with Tata BSE Multicap Consumption 50:30:20 Index Fund.

This product is suitable for investors who are seeking* : Long term Capital Appreciation. Returns that correspond to the total returns of the securities as represented by the BSE Multicap Consumption 50:30:20 Index (TRI), subject to tracking error. ** Investors should understand that their principal will be at Very High risk
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(The above product labelling assigned during NFO is based on internal assessment of the scheme characteristics and the same may vary post NFO when the actual investments are made. The same shall be updated as per provision no. 17.4.1.i of SEBI Master Circular on Mutual Fund dated June 27, 2024, on Product labelling in mutual fund schemes on ongoing basis.)