Nifty India Consumption Index beats Nifty 50 over 3, 5, and 10 years: Here are the top 5 ETFs tracking the theme

If you're looking to benefit from India's long-term consumption story, ETFs tracking the Nifty India Consumption Index offer a simple way to invest in this theme.

The Nifty India Consumption Index comprises 30 companies that represent India's domestic consumption theme. While FMCG accounts for the largest share of the index, it is well-diversified across sectors such as automobiles, consumer durables, consumer services, telecom, healthcare, power, and realty.

Some of the leading constituents of this index include Bharti Airtel, ITC, Mahindra & Mahindra, Eternal, and Hindustan Unilever.

Here's a look at how the Nifty India Consumption Index has performed over the years and the top 5 ETFs that track this index.

Performance of the Nifty India Consumption Index

The Nifty India Consumption Index has delivered strong long-term returns. The index generated a CAGR of 13.31% over the last 10 years, while its 5-year and 3-year CAGR stood at 14.07% and 13.07%, respectively.

In comparison, the broader market benchmark, the Nifty 50 TRI, delivered annualised returns of 9.03%, 10.35%, and 12.63% over the 3-year, 5-year, and 10-year periods, respectively.

This means that an investment of ₹10,000 in the Nifty India Consumption Index 10 years ago would have grown to around ₹34,900, while the same investment in the Nifty 50 would have been worth around ₹32,800 over the same period.

Top 5 Nifty India Consumption ETFs by AUM

The Nippon India ETF Nifty India Consumption is the largest fund in the category, with ₹199 crore in assets under management, followed by the ICICI Prudential Nifty India Consumption ETF, which manages ₹55 crore of assets.

Over the last 5 years, the Nippon India ETF Nifty India Consumption delivered an annualised return of 13.63%. Meanwhile, the ICICI Prudential Nifty India Consumption ETF gave12.78% returns over the last 3 years. This suggests that ETFs tracking the consumption theme have also outperformed the broader market.

Disclaimer: This is purely for educational/ informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.