HDFC Life
India Consumption Advantage Fund

What is New Fund Launch?

New Fund Launch in the context of life insurance, refers to the option to invest in a new fund or security as part of the investment component of a unit linked life insurance policy. Policyholders who choose a ULIP benefit from life insurance coverage while also having the opportunity to invest in market-linked assets. They have the flexibility to allocate a portion of their premiums to various investment options, allowing them to balance their insurance needs with their investment goals. These funds, managed by investment professionals can include a variety of asset classes such as stocks, bonds, and money market instruments.

New Fund Launch in life insurance offer several investment benefits along with life cover. Thus, there is security for the beneficiaries and possibility of capital appreciation as well, over long term.

Understanding the Basics

• What is the objective of the India Consumption Advantage Fund?

(SFIN: ULIF08421/11/25InCnsmAdFd101)

The Fund aims to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity related securities that are likely to benefit directly or indirectly from India’s domestic consumption growth story. The fund may use various derivative instruments, as permitted under applicable Regulations, to calibrate the risks in the portfolio

• What will be the benchmark? What does the benchmark signify?

The Index aims to track the performance of a diversified portfolio of companies representing the domestic consumption sector of the Indian economy. The index constituents are selected from the Nifty 500 and are chosen based on their primary revenues being derived from the domestic consumption theme.

The index portfolio comprises companies across sectors whose business growth is directly linked to the rising disposable income and spending patterns of Indian consumers. The weights of the stocks in the index are determined based on their free float market capitalization, subject to capping so that no single stock dominates the index.

On the other hand, companies in a broad market index like the Nifty 500 index are purely based on free float market capitalization, without any specific thematic focus on consumption.

• What is the investment philosophy behind launching this fund?

We focus on generating benchmark-beating returns over the medium to long term by investing in fundamentally sound and high-quality companies which exhibit most of the following attributes

• Management with high capability

• Good corporate governance

• High ROCE (Return on Capital Employed) and ROE (Return on Equity) that help them pursue their growth opportunities with minimal reliance on external capital

• Consistency in performance

• Capability to manage risk

We strive to deliver superior performance by taking less-than-commensurate risk and place high priority on preventing losses. We believe in reasonable diversification and follow internal limits on stock and industry level exposures to avoid concentration risk.

Highlights of India Consumption Advantage Fund

Source: https://www.niftyindices.com/Factsheet/ind_Nifty_India_Consumption.pdf

Returns are based on 31st Oct, 2025

India Consumption Advantage Fund (SFIN: ULIF08421/11/25InCnsmAdFd101) is available with following products:

• HDFC Life Smart Protect Plan (UIN: 101L175V10)

• HDFC Life Sampoorn Nivesh Plus (UIN: 101L180V01)

• HDFC Life Click 2 Wealth (UIN: 101L133V03)

• HDFC Life Click 2 Invest (UIN: 101L178V01)

What are the Key Features?

Proven Track Record: The Nifty Consumption index has a track record that speaks for itself. It boasts an impressive 10-year benchmark return of 13.55%*. This consistent performance level indicates stability and reliability, making it an attractive option

Returns as of 31st Oct, 2025 (Source: NSE Indices)

Sources: https://www.niftyindices.com/Factsheet/ind_Nifty_India_Consumption.pdf

Investment Strategy: The fund will look to invest in companies that are likely to benefit directly or indirectly from domestic consumption led demand. It will be well diversified across key sectors like consumer staples, consumer durables, Auto and Auto ancillary, domestic pharmaceuticals, healthcare, banks and NBFCs lending towards consumption, telecommunication, media and entertainment, hotels and all other sectors related to the broader consumption theme that are further driven by long term opportunities and relative valuations. 

The investment will be across market caps and will follow flexi cap approach. Investment in companies that provide strong business fundamentals with sustainable profitable growth and superior ROE will be core aspects of the investment universe