Axis Max Life India Consumption Opportunities Fund

The Axis Max Life India Consumption Opportunities Fund is an actively managed equity fund that will primarily focus on investing in companies that are part of or closely related to the domestic consumption sector. Companies that are part of the consumption sector can belong to a wide range of industries but typically their growth as well as profitability is tied to an increase in consumer spending.

Some key sectors and industries that this fund is expected to invest in include auto & auto ancillaries, FMCG, consumer services, consumer durables, telecom, power, healthcare, etc. The fund’s exposure to companies that are part of or closely allied to the consumption sector will be 80% of the portfolio.

Apart from equities, the Axis Max Life India Consumption Opportunities Fund will also have the flexibility to invest in fixed income securities such as corporate bonds , money market instruments/equivalent and/or Government securities. The maximum allocation of the fund towards these debt-oriented instruments cannot exceed 30% at any time. This diversification across different asset classes is expected to help control short-term volatility to some extent.

This thematic fund will be benchmarked against the Nifty Consumption Index and will be available to new and existing policyholders through various ULIP offerings of Axis Max Life Insurance. The fund is expected to be suitable for policyholders who are looking to invest in stocks selected on the basis of the consumption theme in order to potentially benefit from inflation beating long term returns.

As the Axis Max Life India Consumption Fund is a new fund, no historical performance data of the fund exists as of yet. However the fund’s benchmark index, the Nifty India Consumption Index, has a sufficiently long track record since it was launched in July, 2011. The historical performance of this index can thus serve as a good starting point to determine how the consumption theme has performed historically. Below is a comparison of how the Nifty India Consumption Index has performed versus the broad-based Nifty 50 Index over various time periods as of 30 September, 2025:

As you can see from the above table, the consumption index has under-performed versus the Nifty 50 Index in the 1 year returns period. However, over longer time periods such as 5 year returns and returns since inception, the Nifty India Consumption Index has managed to outperform the broad based index. This indicates that in the current scenario, companies covered under the consumption theme may be available at relatively cheap valuation leading to potentially high returns in the long term.

It is however important to keep in mind that there is no guarantee that the consumption index will be able to maintain the same level of performance in the future. That said, the historical trend shows that a fund based on the consumption theme does have the potential to outperform a broad-based index such as the Nifty 50 Index in the long-term.

Being an actively managed equity fund, the fund manager and teams of analysts will play a key role in picking suitable companies for the Axis Max Life India Consumption Opportunities Fund to invest in. The primary criteria for selection is that the company must be part of the consumption sector. The consumption sector comprises a diverse range of industries including but not limited to automotive and auto ancillaries, FMCG, consumer durables, consumer services, financial including insurance, realty, telecom and more.

The fund will maintain at least 80% portfolio allocation towards stocks that are considered part of the consumption sector or closely related to it. Additionally, companies that fulfill the above mentioned criteria also need to generate at least 50% of their revenue from domestic operations (i.e. other than exports) in order to be considered for inclusion into the fund portfolio. This exposure to a wide range of industries is expected to result in a diverse portfolio of stocks that is minimally impacted by the out performance or under performance of any single stock or industry.

Axis Max Life India Consumption Opportunities Fund will be available to new and existing policyholders through various Unit Linked Insurance Plan (ULIP) offerings of Axis Max Life Insurance.

Below mentioned are some of the Axis Max Life ULIP offerings that will allow policyholders to invest in the Axis Max Life India Consumption Opportunities Fund:

• Online Savings Plan (OSP)
• Flexi Wealth Advantage Plan
• Capital Guarantee Solution*

All the above mentioned ULIP offerings feature in-built life cover and provide the dual benefit of life cover as well as market-linked returns to policyholders.

The Axis Max Life India Consumption Opportunities Fund is an equity-oriented fund, so it is prone to significant short-term volatility that is commonly associated with equities. Furthermore, being thematic in nature i.e. based on the consumption theme, this fund may also feature limited diversification options resulting in a potentially high degree of concentration risk.

While classified as a very high risk investment, some key categories of individuals who may benefit from investments made in this fund include:

• Individuals seeking to make equity investments in Indian companies closely associated with the theme of consumption
• Individuals looking to invest in a fund that can potentially benefit from active stock picking that leverages the skill and expertise of a professional fund manager
• Investors who have high risk appetite and can stay invested even in the face of short-term volatility of their investments
• Long-term investors who plan to stay invested in equities for 5 years or longer in order to generate inflation-beating long-term returns

Apart from the new Axis Max Life India Consumption Opportunities Fund, Axis Max Life currently offers a number of actively managed and passively managed funds through its various ULIP policies. These include: