Consumption theme is getting a lot of attention from investors

Both stocks and mutual funds focusing on this theme will benefit from a favourable monsoon and generous MSP hikes

The consumption theme is getting a lot of  attention from investors currently. Both the fast-moving consumer goods (FMCG) index and the Auto index have returned 10.18 per cent 4.06 per cent in the past three months.

And even over the longer term, they have been exceptional performers. The FMCG and Auto indices have given returns at a compounded annual growth rate of 17.04 per cent and 20.29 per cent, respectively, over the past 10 years. 

In recent months, they have performed exceptionally well on the back of news that there will be good monsoon. Add to that, an election year