This fund manager thinks it is the right time to bet on consumption theme. Here’s why
Amar Kalkundrikar, Fund Manager, Nippon India Mutual Fund, says at Nippon the consumption thematic is about investing into companies that provide branded goods and services to consumers. It is a play on rising incomes, aspirations, and brand consciousness of Indian consumers. As their incomes rise, consumers are interested in premiumising their experiences across categories; they go for branded products and are willing to pay for it. That is the sort of behaviour we want to capture in our portfolios.
Kalkundrikar further says Nippon MF has increased exposure to sectors where mass consumption revival should benefit, that includes basic FMCG, QSR, automobiles, where we have seen recovery already starting and of course, some of these home improvement categories.
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Let us just talk about this entire theme, which is clearly picking up as the data also says, now mass consumption clearly was subdued post Covid and the way we saw the effects lingering around the economy, etc. But now not only has the new government taken shape. If we talk about the budget or a 100-day agenda, a lot of thrust seems to be going towards the consumption theme and the rural economy. How do you analyse the government thrust on consumption or bringing it back to where it was?
Amar Kalkundrikar: The last
