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The goal of actively managed portfolios such as Kotak’s is to outperform passively managed funds, like those associated with the Nifty India Consumption Index. Existing actively managed consumption funds have demonstrated this potential, with returns ranging from 15 to 24% over various periods. Key holdings within these portfolios include high-performing companies such as Avenue Supermarts (DMart), HDFC Bank, Hindustan Unilever (LON:ULVR) (HUL), Titan Co., Maruti Suzuki, United Spirits, Nestle India, Trent, and Bharti Airtel.
Investors considering additional allocations to consumption funds should evaluate their current exposure to consumption stocks. Timing plays a crucial role in investing in these funds. Currently, the Nifty India Consumption index’s 1-year forward valuations are near their 5-year averages, suggesting a neutral investment perspective. This information may be instrumental for investors when deciding if they want to increase their stake in the consumption sector of India’s burgeoning economy.
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