 "Existing investors in consumption-oriented funds should stay for long term")
India’s consumption story appears to have hit a temporary bump. Demand has slowed visibly in segments like automobiles, especially personal transportation, and fast-moving consumer goods (FMCGs). It is not yet as starkly visible in the discretionary segment. Investors who have bet on funds focused on the consumption theme should be prepared for weak returns from these funds in the near term.
One factor responsible for the slowdown is the base effect. “The implementation of the goods and services tax (GST) resulted in a decrease in tax rates on many of these goods, due to which they enjoyed a volume boost
