HDFC Life
India Consumption Advantage Pension Fund

HDFC Life India Consumption Advantage Pension Fund 

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

(SFIN:  ULIF08521/11/25InCnsAdPFd101)

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.

This fund is offered under a Pension Plan which provides the dual benefit of life insurance cover and investment growth.

• 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 Pension Fund

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

Returns are based on 31st Oct, 2025

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