Should you invest in consumption-focused mutual funds right now?

Kranthi Bathini, Director of Research at WealthMills Securities, said, “A key reason for the underperformance of consumption funds in the short to medium term could be the changing consumption landscape.”

He added that retail companies, home-grown brands, regional players and organic brands are increasingly driving consumption. Many of these are still unlisted.

Bathini also noted that higher raw material prices and poor/insufficient rainfall could push inflation above 5% in the coming months.