Bengaluru: Tata Asset Management, one of India’s leading fund houses, announced the launch of India’s first multi-cap consumption index fund, offering investors diversified exposure across large-, mid-, and small-cap consumption names through a single product. The new Tata BSE Multicap Consumption 50:30:20 Index Fund, an open-ended scheme, is designed to replicate and track the BSE Multicap Consumption 50:30:20 Index (TRI), providing a mix of potential stability and growth in India’s evolving consumption story.
The New Fund Offer (NFO) opens on December 9, 2025, and closes on December 23, 2025.
Consumption has emerged as a long-term structural theme for India, currently contributing over 60% to the nation’s GDP (Source Barclays Investment Outlook). Traditional consumption indices, however, have historically been heavily skewed towards large-cap and FMCG or auto stocks, often missing the high-growth potential of emerging sectors. The Tata BSE Multicap Consumption 50:30:20 Index Fund addresses this by combining stability from large caps with the growth potential of mid and small caps, while avoiding excessive concentration in any single sub-segment or market-cap category.
The underlying BSE Multicap Consumption 50:30:20 Index selects the top 100 companies based on average six-month total market capitalisation from the BSE 500 universe across consumer discretionary and FMCG, thereby reducing concentration risk in any single segment or market-cap bucket.
Anand Vardarajan, Chief Business Officer, Tata Asset Management, said, “Consumption is a long-term structural theme for India. However, the nature of consumption is shifting from basic needs to lifestyle and aspirational spending. Where the rich spend today, the middle class will spend there tomorrow. While Large Caps offer stability and brand leadership, true wealth creation potential often lies in mid- and small-caps which represent emerging consumption themes like quick commerce, travel, and digital entertainment. The 50:30:20 construct – 50% large-caps, 30% mid-caps, 20% small-caps – aims to offer investors a transparent, rule-based way to participate in the entire consumption ecosystem without the concentration risk often seen in traditional sector funds.”