Despite Market Dips, India is Growing – And Bajaj Finserv Consumption Fund can Help you Benefit from This

Amid fear and uncertainty over a shaky stock market, India received some favourable news about the country’s growth prospects. Latest Gross Domestic Product figures released by the National Statistics Office showed that the country grew at 6.2% in Q3 FY25, up from 5.4% in the previous quarter. With this, the FY ’25 GDP forecast has been revised to 6.5%, from the earlier estimate of 6.4%.

So, while the markets may be taking a breather, India’s broader economic story still seems to be on an upward trajectory, driven by rising incomes, urbanization, and increased consumption.

For investors looking beyond short-term market dips, the Bajaj Finserv Consumption Fund offers a way to tap into this long-term growth trend. The fund focuses on sectors that are set to benefit from India’s surging consumption demand, from e-commerce and automobiles to real estate and FMCG. Here’s how you can be a part of this anticipated consumption boom.

India’s consumption story

Stock markets go through cycles. They rise, they fall, and sometimes they test investors’ patience. But economic fundamentals move at their own pace, and right now, India’s consumption-driven economy is on an upward trajectory.

There are a few reasons for this:

Tax cuts to boost spending: The Union Budget 2025 cut taxes, increasing disposable incomes for millions of Indians. This is partly meant to encourage more spending and therefore, drive consumption.

Young, aspirational consumers: Rising incomes, urban migration, and digital adoption are all fuelling demand for premium products and services.

The e-commerce explosion: Online shopping, instant delivery, and digital payments have reshaped how Indians consume, making e-commerce a core driver of future growth.

All of this bodes well for sectors linked to rising domestic consumption, which is exactly where the Bajaj Finserv Consumption Fund is focused.

How Bajaj Finserv Consumption Fund invests in India’s megatrends

The fund’s investment approach revolves around six megatrends that are likely to shape India’s consumption future:

1. Demographic dividend and e-commerce: With a sizeable young population and growing smartphone penetration, India’s e-commerce market growing rapidly, and companies benefiting from this shift are key investment targets for the fund.

2. Rising consumerism and urbanisation: As India urbanizes, consumers are upgrading their lifestyles. Whether it’s premium clothing, branded essentials, or high-end experiences, the shift toward aspirational consumption is undeniable.

3. FMCG growth potential: Rural India is increasingly becoming a major market for FMCG brands. With deeper penetration of organized retail and rising disposable incomes, demand for everyday essentials—from packaged foods to personal care products—is expected to grow steadily.

4. Online food delivery boom: Busy urban lifestyles and digital convenience have made online food ordering mainstream. The fund taps into companies that stand to benefit from this growing trend.

5. Real estate demand: With rising incomes and urban expansion, demand for homes, office spaces, and commercial real estate is increasing. The fund looks at companies well-positioned in this space.

6. Automobiles (premium segment growth): There is a growing demand in India for premium car models, thanks to rising disposable incomes. SUVs and higher-end vehicles are seeing record demand, making automobile manufacturers a potential investment theme.

Key features of the Bajaj Finserv Consumption Fund

True to label: The fund stays focused on companies directly linked to India’s consumption boom.

Market cap agnostic: Invests across large cap, mid cap, and small cap companies to capture the best growth opportunities.

Targeting future growth opportunities: Aims to identify and invest in trends that will shape India’s consumption landscape in the next decade.

How megatrends can help navigate short-term volatility

Market volatility can be unsettling, but focusing on megatrends can help investors look beyond short-term market swings. Here’s how megatrends can help during volatile times:

Long-term growth potential: Megatrends, such as digital transformation or renewable energy, have the potential to drive sustained growth, making them resilient to short-term market fluctuations.

Structural demand drivers: Megatrends are usually backed by fundamental shifts, facilitating long-term relevance despite short-term economic cycles.

Innovation-led: Companies aligned with megatrends tend to be at the forefront of innovation, which can make them better equipped to withstand economic shocks and potentially recover faster.

Investor focus: Focusing on broader, long-term trends helps reduce reactionary decision-making, promoting a disciplined investment approach.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.