After a relatively good CY2022, in which the consumption funds outperformed diversified equity funds, the investors are again watchful of consumption funds investing across sectors such as consumer staples, consumer discretionary, services and healthcare.

Expectation of a slowdown in growth in Indian economy is expected to hit consumption at a time when the developed markets are staring at recession. Rising inflation and rising interest rates can dent the demand for goods and services. These factors along with rich valuations of the consumption focused stocks add to investors' worries. Investors need to have a slightly longer view on this theme and should invest in a staggered manner.