Published: Wednesday, June 14, 2023, 20:51 [IST]
Based on 5-year performance, we have come across FMCG equity mutual funds that have outperformed the benchmark return of 12.81%. The returns and other details are taken from Value research. Each of the schemes considered is a direct growth plan.
Many FMCG mutual funds in India offer investors exposure to the fast-moving consumer goods sector. These funds invest in stocks of companies that manufacture and sell a wide range of products, including food, beverages, personal care products, and household goods.
But note that FMCG is a defensive sector, which means that it tends to perform well even during economic downturns. Return on investment in a defensive sector will be relatively stable during both economic upturns and downturns.
Companies from such a sector provide products that are essential items that people continue to buy even when their incomes are squeezed. These products are likely to be purchased whether the economy is booming or in a recession. Defensive firms tend to have long histories of surviving economic downturns.
Defensive companies may lag behind other firms during periods of economic expansion due to the stability of demand for their products and services. The surge in demand for discretionary goods during economic booms can sometimes detract from the profits of defensive companies.
Given below are details of each scheme
1. ICICI Prudential FMCG Fund – direct plan
It is a popular fund that has been consistently delivering good returns. The fund has allocated 92.1% to equity, 1.51% to debt, and 6.38% to cash & equivalents. The scheme holds a total of 25 stocks in its portfolio.
5-year return: 13.94%
AUM: Rs 1,332 crores
Minimum SIP Investment: Rs 100
Expense ratio: 2.26%
2. SBI Consumption Opportunities Fund – direct plan
The fund has exposure to 34 stocks. The portfolio of the scheme includes 97.8% equity assets and 2.2% cash holdings.
5-year return: 14.88%
AUM: Rs 1,333 crores
Minimum SIP Investment: Rs 500
Expense ratio: 1.15%
3. Mirae Asset Great Consumer Fund – direct plan
The fund has allocated 97.97% to equity, 0.01% to debt, and 2.02% to cash & equivalents. The scheme holds a total of 36 stocks in its portfolio.
5-year return: 16.07%
AUM: Rs 2,305 crores
Minimum SIP Investment: Rs 1,000
Expense ratio: 0.44%
Investing in FMCG mutual funds can be a good way to get exposure to a growing sector of the Indian economy. However, it is important to do your research and choose a fund that is right for you.
Also, note that there is still risk involved in investing in FMCG funds as the portfolio is concentrated. And remember that past performance is not a guarantee of future returns. Before investing in any mutual fund, it is important to do your research and understand the risks involved.
Disclaimer
Mutual fund investments are subject to market risk. The above-mentioned information is purely informational and doesn’t guarantee any return. Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.