The Effect of Recent GST Reforms on Consumption Mutual Funds
India’s economy is driven significantly by consumption. Consumption mutual funds, which primarily invest in companies benefiting from domestic consumer demand, are naturally linked to trends in spending. The recent GST reforms of September 2025, aimed at reducing rates across several essential sectors, have a direct and indirect impact on consumption patterns and, by extension, on consumption-focused investments. Let’s explore how.
How GST Reforms Influence Consumption
Consumption mutual funds primarily invest in companies benefiting from domestic consumer demand. The 2025 GST reforms have reduced taxes on several such sectors, boosting affordability and disposable income for households, which can directly influence spending patterns.
Key consumption-related sectors affected include:...