Sectoral - FMCG

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FMCG sectoral funds are the mutual funds in which the fund manager is restricted to invest in the stocks of companies which have their businesses in fast moving consumer goods (FMCG) sector. These stocks can provide exponential returns but also possess high risk as the performance of the sector has a direct impact on the performance of FMCG mutual funds. The potential investors can take the advantage from these high-risk schemes which can generate high returns in the long term.

Scheme Name Category Nav Return(%) Rating Analysis Amount Action
Aditya Birla Sun Life Manufacturing Equity Fund (G) Earlier known as Aditya Birla Sun Life Manufacturing Equity Fund - Regular Plan (G)
Sectoral-FMCG 11.76

ICICI Prudential Exports & Services Fund (G) Earlier known as ICICI Prudential Exports & Other Services Fund (G)
Sectoral-FMCG 5.46

Sectoral-FMCG N/A

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FMCG mutual fund invests in the fourth largest sector of India

FMCG (Fast Moving Consumer Goods), sounds to be something colossal. But, in reality, FMCG sector includes those manufacturing industries which produce the goods that are required by the consumers on a daily basis. The FMCG sector in India is the fourth largest sector of economy contributing to the GDP growth. Thus, the main aim of the FMCG mutual funds is to invest in the limited but huge FMCG companies. With the gigantic players like ITC, HUL, Tata Tea, etc., there are limited options available with the AMCs to invest under this scheme. Although, some AMCs have taken into consideration investing in companies manufacturing textile and paints. So, we can see companies like Raymonds and Asian Paints have made their way straight up to the FMCG sector.

As far as the investment is concerned in the FMCG sector in India, the AMCs give equal preference to all the FMCG companies while preparing the portfolio for the investors. The FMCG mutual funds usually cannot provide much diversification owing to the limitation of the FMCG companies. So, repeated stocks appear in the portfolios of the clients. But, with a limitation comes a great benefit, even small in number the FMCG companies share a greater portion of the GDP growth. It implies that FMCG companies contribute higher in the national income than other industries.

Features of FMCG mutual funds in India:

  • High performing: As the consumer needs are growing with the increasing standard of living, so is the investment in through the FMCG mutual funds in India. The FMCG companies are performing quite well and for the same reason, the FMCG mutual funds are blooming. Providing best returns with the scanty options available for investing, FMCG mutual funds are benefiting the investors up to the optimum level.
  • Check on turbulence: FMCG mutual funds are less volatile than the diversified equity funds. The simple reason being that, there are very few options available to the consumers, they have to approach these FMCG companies only. There are very few FMCG brands in India. With such a small number, the FMCG companies are serving such a huge population of India and sharing a reasonable proportion of growth in the GDP along with the National Income. Thus, FMCG mutual funds are providing consistent results with a shield from the growing volatility in the Indian market. Based om this very reason FMCG mutual funds can be said to have a defensive approach rather than an attacking/aggressive approach.
  • Long-term perspective: Like he other diversified mutual fund categories, FMCG funds also extend their true benefits in the long run to the clients. May it be food companies or tobacco or the breweries stocks all have shown prolific growth over the past two years. Hence, shifting the axis on these FMCG companies, the FMCG mutual funds look forward to optimally use the funds of their investors in the forthcoming years.
  • Open-ended fund: FMCG mutual funds are open-ended schemes. Like any other scheme FMCG mutual funds, are also available at any point of time for SIP investment. Creating investing opportunities to all FMCG mutual funds can make your investing experience filled with capital appreciation and sense of security hand in hand.
  • Variegated options: In FMCG mutual funds you have the option of both growth and dividend. Growth options in FMCG funds imply that you will get a lump sum amount at the corpus. On the other hand, the dividend option of the FMCG mutual fund facilitates the transfer of the amount to your account as and when the dividend is declared during the period of investment.

Thus, FMCG mutual funds are the most promising ones. The FMCG mutual funds are expanding their market share, and our site will provide you with the best options available in this very category and you can also calculate your returns with the help of sip calculator.