Investing in tomorrow’s consumers with Bajaj Finserv Consumption Fund

India’s consumption landscape is undergoing a shift —more choices, newer brands, and a consumer base that’s younger and more aspirational.

This changing behaviour isn’t just reshaping shopping carts; it’s also opening up new frontiers for long-term investing – and the Bajaj Finserv Consumption Fund offers investors an opportunity to explore this. This thematic equity scheme invests into sectors likely to benefit from India’s evolving consumption patterns—everything from food delivery and FMCG to real estate and automobiles.

At the heart of the fund is focus on megatrends – deep, long-term forces that are steadily shaping how we live, work, and spend.

• Table of contents

• Why megatrends matter
• The bigger picture

Why megatrends matter

Megatrends aren’t short-term fads. They’re sweeping shifts—like demographic changes, rising incomes, digital adoption, or urbanisation—that play out over decades.

For investors, tuning into these signals early can be a way to ride the structural growth stories of tomorrow. With its consumption theme, Bajaj Finserv AMC is looking beyond just what people are buying today. It’s tracking how broader shifts are influencing demand across industries—and how these could translate into long-term opportunity.

Here are some megatrends that the fund seeks to explore:

1. Digital commerce

India’s demographic profile is a strong growth lever. A large, young workforce that’s tech-savvy and open to new experiences is fuelling digital consumption.

E-commerce, in particular, has seen significant growth in recent years, with more people turning to online platforms for greater convenience and more choices. As internet and smartphone penetration deepens, this trend has the potential to find wider and larger audiences.

2. Urbanisation and a shift in lifestyles

As more Indians move to cities, there is a clear shift in how and where they spend. Urban lifestyles are bringing greater exposure to global brands, new experiences, and aspirational products.

Spending patterns have changed too. Discretionary expenses—entertainment, fashion, eating out—are rising as consumers become more brand-conscious and experience-driven.

3. The untapped potential of FMCG

Fast-moving consumer goods are a staple of everyday life—but in India, there’s still plenty of room for growth.

Per-capita FMCG consumption remains relatively low, especially when compared to global averages. But rising incomes are driving demand not just for more products, but also for better ones. There’s a visible shift toward premium, branded goods, particularly in categories like home care and personal care. The rural market, however, remains untapped – creating a potential long-term growth opportunity.

4. Food delivery

Busy lifestyles and the convenience of smartphones have given rise to another megatrend: online food delivery.

Once considered a novelty, ordering food online is now routine for many urban Indians. Platforms are expanding rapidly, offering variety, ease, and speed. Even so, the sector is still underpenetrated compared to global benchmarks—suggesting there’s room for considerable growth ahead.

5. Real estate riding on urban demand

Urbanisation also brings with it demand for housing, infrastructure, and commercial real estate.

As incomes rise and people look for better living standards, the real estate sector stands to benefit—from not just residential projects, but also the industries that support them, such as construction materials, appliances, and home furnishings.

6. Aspiration-led auto purchases

The auto sector, too, is witnessing a noticeable shift. Consumers today are no longer just looking for functionality—they’re seeking style, technology, and premium features.

From two-wheelers to luxury cars, there’s an evident move toward higher-value purchases, reflecting a broader trend of aspirational consumption.

Also Read: Understanding Megatrends For Mutual Fund Investments

The bigger picture

What ties all of this together is a fundamental change in India’s consumption story. Today’s consumers are more informed, more connected, and more willing to spend on products that reflect their identities and values.

Younger Indians, in particular, are shaping this shift. They’re looking for convenience, personalisation, and quality—and they’re open to trying new brands and services that offer these.

The Bajaj Finserv Consumption Fund aims to participate in this transformation by identifying and investing in megatrends that are still in their early stages – potentially finding investment opportunities in areas that are undervalued, with significant room for potential long-term growth. For investors, the fund offers a way to tap into India’s changing consumer landscape and be part of a story that’s still unfolding.

To invest in the Bajaj Finserv Consumption Fund and for statutory details, visit the scheme page.