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Table of Contents
- Potential of FMCG Sector in India
- Top 4 Best FMCG Mutual Funds to Invest FY 23 - 24
- How to Invest in FMCG Funds?
- FAQs
- 1. What is the full form of FMCG?
- 2. What is a sector fund?
- 3. Is it beneficial to invest in the FMCG sector fund?
- 4. What is CAGR?
- 5. Why is CAGR important in FMCG funds?
- 6. What is long term capital appreciation?
- 7. Are there additional risks in sector funds?
- 8. Why should I invest in sector funds?
- 9. Are returns greater in these funds?
- 10. Why are risks more significant in FMCG sector funds?
- 11. How does consumption reflect on FMCG funds?
Top 4 Equity - Sectoral Funds
4 Best Performing FMCG Sector Funds 2023
The FMCG sector funds are a type of Mutual Funds that invest in companies involved in consumer goods. FMCG is an abbreviation of Fast Moving Customer Goods which is diversified into many products that are used by customers on daily Basis.
The FMCG marketplace is huge and includes many leading companies like ITC, Hindustan Unilever Limited, Dabur, Colgate Palmolive, Britania, Gillete, Marico, Nestle, Emami, Godrej Consumer etc.
Investors who want to invest in this fund should stay invested for a long time, as they tend to fetch good returns in the long-run. Investors can choose best FMCG sector funds from the below-listed top performers.
Potential of FMCG Sector in India
Fast Moving Consumer Goods (FMCG) is the 4th largest sector in the Indian Economy. There are three main segments in the sector – food & beverages, which accounts for 19 percent of the sector, healthcare of about 31 percent and household & personal care accounts for the remaining 50 percent of the sector.
The FMCG Market in India is expected to increase at a CAGR of 14.9% to reach US$ 220 billion by 2025, from US$ 110 billion in 2020.
The future of the FMCG market in India looks very promising, and it is expected to continue growing in the coming years. The following are some of the factors that will shape the future of the FMCG market in India:
Increasing rural consumption: With rising incomes and increasing penetration of modern retail, rural consumers are expected to play a more significant role in driving the growth of the FMCG market in India
Growing e-commerce: The growth of e-commerce in India is expected to provide FMCG companies with a new channel for reaching consumers and selling their products
Premiumisation: As consumers become more health-conscious and willing to spend more on premium products, the demand for high-quality, premium FMCG products is expected to grow
Increased focus on sustainability: FMCG companies are expected to increasingly focus on sustainability, as consumers become more environmentally conscious and look for products that are made in an environmentally friendly way
New product innovations: FMCG companies are expected to continue to innovate and bring new and innovative products to the market, as they look to tap into the growing demand for consumer goods in India
Overall, the future of the FMCG market in India looks very positive, and FMCG companies operating in the country are well-positioned to capitalise on the growing demand for consumer goods.
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Top 4 Best FMCG Mutual Funds to Invest FY 23 - 24
When it comes to Investing in the FMCG sector fund, investors should be cautious, especially newbies. It is a sector-specific fund, therefore it carries a high-risk. However, a small portion of this fund may be good for Portfolio diversification. To make good profits in this fund, one should stay invested for a long-term. As India is young growing country, this theme has a bright future.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2022 (%) TATA India Consumer Fund Growth ₹25.945
↑ 0.28 ₹1,347 -3.6 -6.9 2.6 22.2 8.9 1 ICICI Prudential FMCG Fund Growth ₹388.58
↑ 3.02 ₹1,156 0.9 3.1 20.2 24.5 12.4 18.3 Mirae Asset Great Consumer Fund Growth ₹56.264
↑ 0.61 ₹1,989 -4.9 -4.6 7.3 26.7 12.1 7.2 Canara Robeco Consumer Trends Fund Growth ₹66.86
↑ 0.62 ₹935 -5.7 -4.9 5.5 26 13.6 6.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Mar 23
The investment objective of the scheme is to seek long term capital appreciation by investing atleast 80% of its assets in equity/equity related instruments of the companies in the Consumption Oriented sectors in India.However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.The Scheme does not assure or guarantee any returns. TATA India Consumer Fund is a Equity - Sectoral fund was launched on 28 Dec 15. It is a fund with High risk and has given a Below is the key information for TATA India Consumer Fund Returns up to 1 year are on To generate long term capital appreciation through investments made primarily in Fast Moving Consumer Goods sector that are fundamentally strong and have established brands. ICICI Prudential FMCG Fund is a Equity - Sectoral fund was launched on 31 Mar 99. It is a fund with High risk and has given a Below is the key information for ICICI Prudential FMCG Fund Returns up to 1 year are on The investment objective of the scheme is to generate long term capital appreciation by investing in a portfolio of companies/funds that are likely to benefit either directly or indirectly from consumption led demand in India. The Scheme does not guarantee or assure any returns Mirae Asset Great Consumer Fund is a Equity - Sectoral fund was launched on 29 Mar 11. It is a fund with High risk and has given a Below is the key information for Mirae Asset Great Consumer Fund Returns up to 1 year are on (Erstwhile Canara Robeco F.O.R.C.E Fund) The objective of the Fund is to provide long - term capital appreciation by
primarily investing in equity and equity related securities of companies in the Finance, Retail & Entertainment sectors. However, there can be no
assurance that the investment objective of the scheme will be realized. Canara Robeco Consumer Trends Fund is a Equity - Sectoral fund was launched on 14 Sep 09. It is a fund with High risk and has given a Below is the key information for Canara Robeco Consumer Trends Fund Returns up to 1 year are on 1. TATA India Consumer Fund
CAGR/Annualized return of 14.1% since its launch. Return for 2022 was 1% , 2021 was 27.5% and 2020 was 21% . TATA India Consumer Fund
Growth Launch Date 28 Dec 15 NAV (29 Mar 23) ₹25.945 ↑ 0.28 (1.10 %) Net Assets (Cr) ₹1,347 on 28 Feb 23 Category Equity - Sectoral AMC Tata Asset Management Limited Rating Risk High Expense Ratio 0 Sharpe Ratio 0.01 Information Ratio -0.11 Alpha Ratio -1.6 Min Investment 5,000 Min SIP Investment 150 Exit Load 0-18 Months (1%),18 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹9,796 29 Feb 20 ₹10,283 28 Feb 21 ₹12,358 28 Feb 22 ₹14,653 28 Feb 23 ₹15,292 Returns for TATA India Consumer Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Mar 23 Duration Returns 1 Month -0.6% 3 Month -3.6% 6 Month -6.9% 1 Year 2.6% 3 Year 22.2% 5 Year 8.9% 10 Year 15 Year Since launch 14.1% Historical performance (Yearly) on absolute basis
Year Returns 2022 1% 2021 27.5% 2020 21% 2019 -2% 2018 -2.1% 2017 73.3% 2016 3.1% 2015 2014 2013 Fund Manager information for TATA India Consumer Fund
Name Since Tenure Sonam Udasi 1 Apr 16 6.92 Yr. Data below for TATA India Consumer Fund as on 28 Feb 23
Equity Sector Allocation
Sector Value Consumer Defensive 38.85% Consumer Cyclical 30.75% Industrials 15.88% Basic Materials 5.05% Communication Services 2.03% Technology 0.99% Asset Allocation
Asset Class Value Cash 6.44% Equity 93.55% Debt 0.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 20 | ITC12% ₹158 Cr 4,185,000
↑ 30,000 Nestle India Ltd (Consumer Defensive)
Equity, Since 31 Aug 17 | NESTLEIND6% ₹86 Cr 45,800
↑ 3,500 Radico Khaitan Ltd (Consumer Defensive)
Equity, Since 30 Nov 17 | RADICO6% ₹85 Cr 730,000 Titan Co Ltd (Consumer Cyclical)
Equity, Since 31 Jan 19 | TITAN6% ₹81 Cr 340,000
↑ 62,000 Jubilant Foodworks Ltd (Consumer Cyclical)
Equity, Since 31 Jan 18 | JUBLFOOD6% ₹75 Cr 1,711,000 Trent Ltd (Consumer Cyclical)
Equity, Since 31 Jan 18 | 5002515% ₹72 Cr 560,000 Havells India Ltd (Industrials)
Equity, Since 31 Jan 21 | 5173545% ₹64 Cr 532,000 Metro Brands Ltd (Consumer Cyclical)
Equity, Since 31 Dec 21 | 5434264% ₹54 Cr 659,470 Tata Consumer Products Ltd (Consumer Defensive)
Equity, Since 30 Sep 19 | 5008004% ₹52 Cr 720,000 Asian Paints Ltd (Basic Materials)
Equity, Since 29 Feb 20 | 5008204% ₹51 Cr 180,164 2. ICICI Prudential FMCG Fund
CAGR/Annualized return of 16.5% since its launch. Ranked 21 in Sectoral category. Return for 2022 was 18.3% , 2021 was 19.5% and 2020 was 9.7% . ICICI Prudential FMCG Fund
Growth Launch Date 31 Mar 99 NAV (29 Mar 23) ₹388.58 ↑ 3.02 (0.78 %) Net Assets (Cr) ₹1,156 on 28 Feb 23 Category Equity - Sectoral AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk High Expense Ratio 2.52 Sharpe Ratio 1.34 Information Ratio -0.09 Alpha Ratio -1.28 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹10,568 29 Feb 20 ₹11,101 28 Feb 21 ₹12,209 28 Feb 22 ₹14,665 28 Feb 23 ₹17,797 Returns for ICICI Prudential FMCG Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Mar 23 Duration Returns 1 Month 0.6% 3 Month 0.9% 6 Month 3.1% 1 Year 20.2% 3 Year 24.5% 5 Year 12.4% 10 Year 15 Year Since launch 16.5% Historical performance (Yearly) on absolute basis
Year Returns 2022 18.3% 2021 19.5% 2020 9.7% 2019 4.5% 2018 7.1% 2017 35.6% 2016 1% 2015 4.9% 2014 32.5% 2013 9.3% Fund Manager information for ICICI Prudential FMCG Fund
Name Since Tenure Priyanka Khandelwal 15 Jun 17 5.71 Yr. Sharmila D’mello 30 Jun 22 0.67 Yr. Data below for ICICI Prudential FMCG Fund as on 28 Feb 23
Equity Sector Allocation
Sector Value Consumer Defensive 87.66% Consumer Cyclical 7.51% Communication Services 1.25% Asset Allocation
Asset Class Value Cash 3.59% Equity 96.38% Debt 0.03% Top Securities Holdings / Portfolio
Name Holding Value Quantity ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC31% ₹354 Cr 9,401,577
↓ -612,468 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 May 16 | HINDUNILVR17% ₹191 Cr 776,225
↓ -36,913 Nestle India Ltd (Consumer Defensive)
Equity, Since 31 Jul 22 | NESTLEIND6% ₹70 Cr 37,597
↓ -5,379 Dabur India Ltd (Consumer Defensive)
Equity, Since 31 Jan 16 | 5000964% ₹49 Cr 923,453
↓ -231,465 Procter & Gamble Hygiene and Health Care Ltd (Consumer Defensive)
Equity, Since 29 Feb 20 | PGHH4% ₹41 Cr 29,487
↓ -65 Gillette India Ltd (Consumer Defensive)
Equity, Since 30 Jun 21 | GILLETTE3% ₹37 Cr 78,814 Avenue Supermarts Ltd (Consumer Defensive)
Equity, Since 30 Nov 22 | 5403763% ₹32 Cr 93,645 Zydus Wellness Ltd (Consumer Defensive)
Equity, Since 30 Sep 20 | ZYDUSWELL3% ₹31 Cr 216,797 Jyothy Labs Ltd (Consumer Defensive)
Equity, Since 31 Jan 21 | 5329263% ₹29 Cr 1,525,983
↓ -24,992 Altria Group Inc (Consumer Defensive)
Equity, Since 31 Oct 21 | MO2% ₹25 Cr 63,900 3. Mirae Asset Great Consumer Fund
CAGR/Annualized return of 15.5% since its launch. Ranked 7 in Sectoral category. Return for 2022 was 7.2% , 2021 was 33% and 2020 was 11.2% . Mirae Asset Great Consumer Fund
Growth Launch Date 29 Mar 11 NAV (29 Mar 23) ₹56.264 ↑ 0.61 (1.09 %) Net Assets (Cr) ₹1,989 on 28 Feb 23 Category Equity - Sectoral AMC Mirae Asset Global Inv (India) Pvt. Ltd Rating ☆☆☆☆ Risk High Expense Ratio 1.92 Sharpe Ratio 0.25 Information Ratio 0.1 Alpha Ratio 2.13 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹10,089 29 Feb 20 ₹11,201 28 Feb 21 ₹13,448 28 Feb 22 ₹15,986 28 Feb 23 ₹17,331 Returns for Mirae Asset Great Consumer Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Mar 23 Duration Returns 1 Month -0.1% 3 Month -4.9% 6 Month -4.6% 1 Year 7.3% 3 Year 26.7% 5 Year 12.1% 10 Year 15 Year Since launch 15.5% Historical performance (Yearly) on absolute basis
Year Returns 2022 7.2% 2021 33% 2020 11.2% 2019 8.6% 2018 1.9% 2017 51% 2016 2% 2015 3.8% 2014 42.7% 2013 9.9% Fund Manager information for Mirae Asset Great Consumer Fund
Name Since Tenure Ankit Jain 5 Oct 16 6.4 Yr. Siddhant Chhabria 30 Sep 21 1.41 Yr. Data below for Mirae Asset Great Consumer Fund as on 28 Feb 23
Equity Sector Allocation
Sector Value Consumer Cyclical 34.14% Consumer Defensive 33.28% Financial Services 10.77% Basic Materials 6.92% Industrials 5.58% Communication Services 4.96% Health Care 3.95% Asset Allocation
Asset Class Value Cash 0.39% Equity 99.61% Other 0.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC9% ₹177 Cr 4,700,000
↑ 100,000 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Sep 15 | HINDUNILVR6% ₹118 Cr 480,000
↑ 35,000 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Mar 12 | MARUTI5% ₹108 Cr 125,000 Titan Co Ltd (Consumer Cyclical)
Equity, Since 31 Dec 16 | TITAN5% ₹106 Cr 445,000
↑ 85,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Sep 19 | BHARTIARTL5% ₹99 Cr 1,330,000
↑ 100,000 Britannia Industries Ltd (Consumer Defensive)
Equity, Since 31 Aug 19 | 5008254% ₹83 Cr 185,000
↓ -10,000 TVS Motor Co Ltd (Consumer Cyclical)
Equity, Since 31 May 18 | 5323434% ₹81 Cr 750,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 May 14 | HDFCBANK4% ₹80 Cr 500,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jan 19 | 5322154% ₹79 Cr 930,000 United Spirits Ltd (Consumer Defensive)
Equity, Since 30 Nov 20 | MCDOWELL-N4% ₹77 Cr 1,040,000 4. Canara Robeco Consumer Trends Fund
CAGR/Annualized return of 15.1% since its launch. Ranked 16 in Sectoral category. Return for 2022 was 6.1% , 2021 was 30.2% and 2020 was 20.5% . Canara Robeco Consumer Trends Fund
Growth Launch Date 14 Sep 09 NAV (29 Mar 23) ₹66.86 ↑ 0.62 (0.94 %) Net Assets (Cr) ₹935 on 28 Feb 23 Category Equity - Sectoral AMC Canara Robeco Asset Management Co. Ltd. Rating ☆☆☆ Risk High Expense Ratio 2.51 Sharpe Ratio 0.13 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹10,237 29 Feb 20 ₹12,004 28 Feb 21 ₹15,521 28 Feb 22 ₹17,661 28 Feb 23 ₹18,811 Returns for Canara Robeco Consumer Trends Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Mar 23 Duration Returns 1 Month -1.1% 3 Month -5.7% 6 Month -4.9% 1 Year 5.5% 3 Year 26% 5 Year 13.6% 10 Year 15 Year Since launch 15.1% Historical performance (Yearly) on absolute basis
Year Returns 2022 6.1% 2021 30.2% 2020 20.5% 2019 12.8% 2018 2% 2017 41% 2016 3.4% 2015 1.8% 2014 56.3% 2013 -2.3% Fund Manager information for Canara Robeco Consumer Trends Fund
Name Since Tenure Shridatta Bhandwaldar 1 Oct 19 3.41 Yr. Ennette Fernandes 1 Oct 21 1.41 Yr. Data below for Canara Robeco Consumer Trends Fund as on 28 Feb 23
Equity Sector Allocation
Sector Value Financial Services 29.57% Consumer Defensive 24.99% Consumer Cyclical 23.77% Industrials 9.33% Health Care 3.72% Communication Services 2.9% Basic Materials 0.99% Asset Allocation
Asset Class Value Cash 4.74% Equity 95.26% Top Securities Holdings / Portfolio
Name Holding Value Quantity ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 21 | ITC6% ₹60 Cr 1,600,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Aug 18 | ICICIBANK5% ₹50 Cr 587,000 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 May 17 | HINDUNILVR5% ₹48 Cr 195,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | HDFCBANK4% ₹41 Cr 257,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 20 | 5322154% ₹38 Cr 446,000 State Bank of India (Financial Services)
Equity, Since 30 Nov 20 | SBIN4% ₹35 Cr 672,000 Titan Co Ltd (Consumer Cyclical)
Equity, Since 30 Apr 21 | TITAN3% ₹32 Cr 135,000 Godrej Consumer Products Ltd (Consumer Defensive)
Equity, Since 31 Aug 21 | 5324243% ₹30 Cr 330,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 22 | BHARTIARTL3% ₹27 Cr 365,000 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 30 Sep 21 | MARUTI3% ₹25 Cr 28,500
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FAQs
1. What is the full form of FMCG?
A: The full form of FMCG is Fast Moving Consumer Goods. These goods are usually consumer goods with short shelf life like soft drinks, dairy products, frozen goods, and medicines.
2. What is a sector fund?
A: Sector funds are similar to mutual funds or investment funds, but these belong to only a single industrial sector.
3. Is it beneficial to invest in the FMCG sector fund?
A: Although the FMCG sector fund is often considered a high-risk investment, it can prove beneficial to invest in the FMCG sector fund. The FMCG sector fund produces good returns as these companies usually record an excellent profit margin. Even if you are not looking to trade in the FMCG sector fund, it generally produces good dividends.
4. What is CAGR?
A: The full form of CAGR is the Compounded Annual Growth Rate. By evaluating the CAGR, you can quickly evaluate the best investment portfolios and identify the Best Sector Funds for investment.
5. Why is CAGR important in FMCG funds?
A: The CAGR will help you evaluate the FMCG Industry's performance, which is necessary when planning to diversify your portfolio of a sector fund. If the CAGR of the FMCG is 17% and above, then you can consider this as robust returns, and it is suitable for investment.
6. What is long term capital appreciation?
A: Long term Capital appreciation is the rise in stocks price when held for a more extended period. If you are investing in a particular sector fund, it is essential to evaluate its long-term capital appreciation. Preferably the price of the stocks should rise in five years, and you can earn good returns.
7. Are there additional risks in sector funds?
A: The sector funds are considered riskier than mutual funds as there is no chance of moving away from the particular sector if it stops performing. Usually, the minimum time for investment in a sector fund to mature is three years, and if the stock stops performing, you cannot move away from the particular sector.
Sector funds are usually more volatile than diversified Equity Funds, wherein you can invest in stocks of different sectors. Since you will be investing only in a single sector, you will have no option but to stay with your particular industrial sector choice.
8. Why should I invest in sector funds?
A: Despite the risks involved, sector funds have been known to produce excellent returns. However, you will have to wait for 3-5 years for your investment to produce the desired results.
9. Are returns greater in these funds?
A: The returns of sector funds depend on the risk that you are prepared to take. Usually, the returns are higher in sector funds, especially if the particular sector starts performing better than expected. It is always a good idea to diversify your investment portfolio with some sector funds.
10. Why are risks more significant in FMCG sector funds?
A: The FMCG market is quite unpredictable, which makes investment in the FMCG sector riskier. Moreover, not all companies in this sector can perform equally well. Hence, it is better to diversify one's portfolio of investments. As the funds are entirely dependent on the consumer, predicting the market's outcome with absolute certainty is quite challenging.
11. How does consumption reflect on FMCG funds?
A: If the consumption increases, it is likely to improve the companies' profit margin in this sector. Subsequently, as the CAGR will increase, it will improve the returns on investment. Thus, increased consumption will reflect positively on the FMCG sector funds.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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Informative and good explanations