1. Nippon India Consumption Fund Top performer with 20.52% 5-year XIRR, strong Sharpe (0.83), moderate volatility (13.50%), but significant -21.07% drawdown for growth seekers.
2. Tata India Consumer Fund High 19.77% 5-year XIRR, best Sharpe (0.87), moderate volatility (14.16%), resilient -19.45% drawdown, ideal for balanced risk-return investors.
| Fund Name | 5Y XIRR | 5Y XIRR Percentile | 3Y XIRR | 3Y XIRR Percentile | 1Y XIRR | 1Y XIRR Percentile | 1Y Return | 3Y Return | 5Y Return |
|---|---|---|---|---|---|---|---|---|---|
| Nippon India Consumption Fund | 20.52 | 100.00 | 17.30 | 75.00 | 4.44 | 53.33 | -2.20 | 18.94 | 25.23 |
| Tata India Consumer Fund | 19.77 | 90.91 | 19.25 | 100.00 | 5.29 | 66.67 | 2.78 | 20.24 | 23.14 |
| Mirae Asset Great Consumer Fund | 19.70 | 81.82 | 17.57 | 83.33 | 5.27 | 60.00 | -1.67 | 19.29 | 24.40 |
| Sbi Consumption Opportunities Fund | 19.43 | 72.73 | 14.00 | 16.67 | -3.50 | 6.67 | -5.83 | 17.84 | 27.84 |
| Canara Robeco Consumer Trends Fund | 19.18 | 63.64 | 17.89 | 91.67 | 6.68 | 86.67 | 1.49 | 18.50 | 23.67 |
| Icici Prudential Bharat Consumption Fund | 18.76 | 54.55 | 16.44 | 58.33 | 3.42 | 40.00 | -1.50 | 17.73 | 22.29 |
| Sundaram Consumption Fund | 18.04 | 45.45 | 16.89 | 66.67 | 3.62 | 46.67 | 1.13 | 17.79 | 21.23 |
| Mahindra Manulife Consumption Fund | 17.82 | 36.36 | 15.98 | 33.33 | 1.75 | 33.33 | -4.21 | 17.58 | 21.70 |
| Aditya Birla Sun Life India Gennext Fund | 17.69 | 27.27 | 16.36 | 50.00 | 5.84 | 73.33 | 0.48 | 16.81 | 22.50 |
| Uti India Consumer Fund | 14.70 | 18.18 | 14.01 | 25.00 | 0.57 | 20.00 | -3.45 | 14.01 | 18.17 |
| Fund Name | Sharpe Ratio | Sortino Ratio | Treynor Ratio | Standard Deviation | Semi Deviation | Max Drawdown | Average Drawdown | VaR 1Y |
|---|---|---|---|---|---|---|---|---|
| Nippon India Consumption Fund | 0.83 | 0.37 | 0.13 | 13.50 | 10.50 | -21.07 | -10.20 | -14.79 |
| Tata India Consumer Fund | 0.87 | 0.40 | 0.14 | 14.16 | 10.86 | -19.45 | -5.98 | -24.76 |
| Mirae Asset Great Consumer Fund | 0.78 | 0.36 | 0.12 | 14.47 | 10.95 | -23.34 | -8.25 | -22.29 |
| Sbi Consumption Opportunities Fund | 0.74 | 0.34 | 0.13 | 13.86 | 10.57 | -21.94 | -6.18 | -23.46 |
| Canara Robeco Consumer Trends Fund | 0.84 | 0.40 | 0.13 | 12.79 | 9.54 | -19.19 | -4.98 | -19.06 |
| Icici Prudential Bharat Consumption Fund | 0.85 | 0.38 | 0.13 | 12.37 | 9.49 | -20.01 | -6.90 | -15.72 |
| Sundaram Consumption Fund | 0.78 | 0.36 | 0.12 | 13.49 | 10.22 | -18.70 | -9.49 | -17.72 |
| Mahindra Manulife Consumption Fund | 0.70 | 0.32 | 0.11 | 13.48 | 10.37 | -22.55 | -7.91 | -21.68 |
| Aditya Birla Sun Life India Gennext Fund | 0.71 | 0.34 | 0.11 | 13.22 | 9.88 | -19.90 | -4.60 | -17.87 |
| Uti India Consumer Fund | 0.49 | 0.23 | 0.07 | 14.17 | 10.72 | -22.43 | -7.13 | -18.93 |
The consumption sector in India, encompassing retail, FMCG, and consumer durables, offers robust growth opportunities driven by rising disposable incomes and urbanization. Below, we analyze the top five consumption-themed equity funds based on their 5-year XIRR, alongside key risk metrics like Sharpe Ratio, Standard Deviation, and Max Drawdown. This evaluation, derived from recent data, helps investors align their portfolios with their risk and return preferences.
The 5-year XIRR (Extended Internal Rate of Return) gives insight into a fund’s long-term performance. For consumption funds, a high 5-year XIRR indicates the fund’s ability to capitalize on steady consumer growth, making it attractive for growth-focused investors.
1. Nippon India Consumption Fund
Nippon India Consumption Fund leads with a 5-year XIRR of 20.52%, ranking in the 100th percentile among peers. Its Sharpe Ratio of 0.83 reflects efficient risk-adjusted returns, balancing growth with moderate volatility. A standard deviation of 13.50% indicates reasonable fluctuations, but the max drawdown of -21.07% suggests vulnerability during market downturns, such as the 2020 crash. This fund suits investors seeking strong long-term growth with tolerance for periodic declines.
2. Tata India Consumer Fund
With a 5-year XIRR of 19.77% (90.91 percentile), Tata India Consumer Fund delivers competitive returns. Its Sharpe Ratio of 0.87 is the highest among peers, indicating superior risk-adjusted performance. The standard deviation of 14.16% reflects slightly higher volatility, while a max drawdown of -19.45% shows resilience compared to peers. This fund is ideal for investors comfortable with moderate risk for above-average returns.
3. Mirae Asset Great Consumer Fund
Mirae Asset Great Consumer Fund offers a 5-year XIRR of 19.70% (81.82 percentile), supported by a Sharpe Ratio of 0.78 for balanced risk-adjusted returns. Its standard deviation of 14.47% is the highest among the top five, indicating greater volatility. The max drawdown of -23.34% signals significant downside risk during market corrections. This fund appeals to moderately aggressive investors seeking growth with some risk tolerance.
4. Canara Robeco Consumer Trends Fund
Canara Robeco Consumer Trends Fund delivers a 5-year XIRR of 19.18% (63.64 percentile), with a strong Sharpe Ratio of 0.84, reflecting efficient risk management. Its standard deviation of 12.79% is among the lowest, indicating stable performance. A max drawdown of -19.19% suggests resilience during downturns. This fund is suitable for investors prioritizing steady returns with controlled volatility.
5. SBI Consumption Opportunities Fund
SBI Consumption Opportunities Fund posts a 5-year XIRR of 19.43% (72.73 percentile), with a Sharpe Ratio of 0.74, the lowest among the top five, suggesting less efficient risk-adjusted returns. Its standard deviation of 13.86% indicates moderate volatility, but a max drawdown of -21.94% highlights significant downside risk. This fund suits investors seeking growth but prepared for periodic market dips.
Key Risk Metrics Explained
Understanding risk metrics is crucial for assessing a fund’s stability and potential losses:
Comparison of the Top Consumption Funds
Risk-Return Balance
Tata India Consumer Fund stands out with the highest Sharpe Ratio (0.87) and a strong 5-year XIRR (19.77%), making it ideal for investors seeking a balance between growth and risk efficiency. Nippon India leads in returns (20.52%) but has a slightly lower Sharpe (0.83) and higher drawdown (-21.07%), suiting growth-oriented investors with moderate risk tolerance. Canara Robeco’s low volatility (12.79%) and solid Sharpe (0.84) make it a stable choice.
Stability and Volatility
For investors prioritizing stability, Canara Robeco (12.79% standard deviation) and Nippon India (13.50%) offer less fluctuation. SBI and Mirae Asset, with higher standard deviations (13.86% and 14.47%), are suited for those accepting more volatility. Tata’s balanced profile (14.16% standard deviation, -19.45% drawdown) bridges stability and growth.
Long-Term Growth Potential
The 5-year XIRR underscores long-term potential. Nippon India (20.52%) and Tata (19.77%) lead, capitalizing on consumption trends like e-commerce and rural spending. Mirae Asset and Canara Robeco follow closely, while SBI’s 19.43% remains competitive despite a weaker Sharpe Ratio, appealing to long-term investors.
Conclusion: Selecting the Right Consumption Fund
Choosing a consumption fund hinges on balancing growth aspirations with risk tolerance. Tata India Consumer Fund excels in risk-adjusted returns, making it a top pick for moderate-risk investors. Nippon India Consumption Fund offers the highest returns, ideal for those prioritizing growth despite higher drawdowns. Canara Robeco appeals to conservative investors with its low volatility and steady performance. SBI and Mirae Asset suit those willing to navigate volatility for competitive returns.
India’s consumption sector, fueled by demographic shifts and digital adoption, remains a promising investment theme. By leveraging metrics like 5-year XIRR, Sharpe Ratio, Standard Deviation, and Max Drawdown, investors can align their choices with financial goals, ensuring a portfolio that balances growth with resilience.