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4 Best Performing FMCG Sector Funds 2023 | Fincash

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4 Best Performing FMCG Sector Funds 2023

Updated on February 28, 2024 , 91611 views

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.

FMCG

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.

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
TATA India Consumer Fund Growth ₹36.745
↑ 0.25
₹1,8425.41439.820.116.935.8
ICICI Prudential FMCG Fund Growth ₹449.04
↑ 1.32
₹1,490-0.2216.219.214.423.3
Mirae Asset Great Consumer Fund Growth ₹78.827
↑ 0.47
₹3,0944.813.439.121.51932.9
Canara Robeco Consumer Trends Fund Growth ₹91.93
↑ 0.71
₹1,3407153517.819.926.4
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 1 Mar 24

1. TATA India Consumer Fund

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 CAGR/Annualized return of 17.2% since its launch.  Return for 2023 was 35.8% , 2022 was 1% and 2021 was 27.5% .

Below is the key information for TATA India Consumer Fund

TATA India Consumer Fund
Growth
Launch Date 28 Dec 15
NAV (01 Mar 24) ₹36.745 ↑ 0.25   (0.67 %)
Net Assets (Cr) ₹1,842 on 31 Jan 24
Category Equity - Sectoral
AMC Tata Asset Management Limited
Rating Not Rated
Risk High
Expense Ratio 1.97
Sharpe Ratio 2.35
Information Ratio 0.24
Alpha Ratio 8.06
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.

DateValue
28 Feb 19₹10,000
29 Feb 20₹10,497
28 Feb 21₹12,616
28 Feb 22₹14,959
28 Feb 23₹15,611
29 Feb 24₹21,831

TATA India Consumer Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹458,689.
Net Profit of ₹158,689
Invest Now

Returns for TATA India Consumer Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 1 Mar 24

DurationReturns
1 Month 1.1%
3 Month 5.4%
6 Month 14%
1 Year 39.8%
3 Year 20.1%
5 Year 16.9%
10 Year
15 Year
Since launch 17.2%
Historical performance (Yearly) on absolute basis
YearReturns
2023 35.8%
2022 1%
2021 27.5%
2020 21%
2019 -2%
2018 -2.1%
2017 73.3%
2016 3.1%
2015
2014
Fund Manager information for TATA India Consumer Fund
NameSinceTenure
Sonam Udasi1 Apr 167.84 Yr.
Aditya Bagul3 Oct 230.33 Yr.

Data below for TATA India Consumer Fund as on 31 Jan 24

Equity Sector Allocation
SectorValue
Consumer Defensive39.51%
Consumer Cyclical34.47%
Industrials6.54%
Technology5.52%
Basic Materials4.19%
Communication Services2.06%
Financial Services1.95%
Asset Allocation
Asset ClassValue
Cash5.75%
Equity94.25%
Debt0.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 20 | ITC
9%₹171 Cr3,710,000
Nestle India Ltd (Consumer Defensive)
Equity, Since 31 Aug 17 | NESTLEIND
7%₹121 Cr45,700
↓ -3,000
Tata Consumer Products Ltd (Consumer Defensive)
Equity, Since 30 Sep 19 | 500800
6%₹110 Cr1,013,000
↑ 50,000
Titan Co Ltd (Consumer Cyclical)
Equity, Since 31 Jan 19 | TITAN
6%₹107 Cr290,000
Radico Khaitan Ltd (Consumer Defensive)
Equity, Since 30 Nov 17 | RADICO
6%₹105 Cr631,500
Jubilant Foodworks Ltd (Consumer Cyclical)
Equity, Since 31 Jan 18 | JUBLFOOD
5%₹97 Cr1,711,000
Trent Ltd (Consumer Cyclical)
Equity, Since 31 Jan 18 | TRENT
5%₹93 Cr306,000
↓ -54,000
Metro Brands Ltd (Consumer Cyclical)
Equity, Since 31 Dec 21 | 543426
4%₹71 Cr561,970
Hero MotoCorp Ltd (Consumer Cyclical)
Equity, Since 30 Apr 23 | HEROMOTOCO
4%₹67 Cr162,000
Avenue Supermarts Ltd (Consumer Defensive)
Equity, Since 31 Aug 22 | DMART
3%₹57 Cr140,686

2. ICICI Prudential FMCG Fund

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 CAGR/Annualized return of 16.5% since its launch.  Ranked 21 in Sectoral category.  Return for 2023 was 23.3% , 2022 was 18.3% and 2021 was 19.5% .

Below is the key information for ICICI Prudential FMCG Fund

ICICI Prudential FMCG Fund
Growth
Launch Date 31 Mar 99
NAV (29 Feb 24) ₹449.04 ↑ 1.32   (0.29 %)
Net Assets (Cr) ₹1,490 on 31 Jan 24
Category Equity - Sectoral
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk High
Expense Ratio 2.39
Sharpe Ratio 1.21
Information Ratio -0.16
Alpha Ratio -1.48
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.

DateValue
28 Feb 19₹10,000
29 Feb 20₹10,504
28 Feb 21₹11,553
28 Feb 22₹13,877
28 Feb 23₹16,840
29 Feb 24₹19,572

ICICI Prudential FMCG Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710
Invest Now

Returns for ICICI Prudential FMCG Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 1 Mar 24

DurationReturns
1 Month -1.7%
3 Month -0.2%
6 Month 2%
1 Year 16.2%
3 Year 19.2%
5 Year 14.4%
10 Year
15 Year
Since launch 16.5%
Historical performance (Yearly) on absolute basis
YearReturns
2023 23.3%
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%
Fund Manager information for ICICI Prudential FMCG Fund
NameSinceTenure
Priyanka Khandelwal15 Jun 176.63 Yr.
Sharmila D’mello30 Jun 221.59 Yr.

Data below for ICICI Prudential FMCG Fund as on 31 Jan 24

Equity Sector Allocation
SectorValue
Consumer Defensive89.3%
Consumer Cyclical2.04%
Asset Allocation
Asset ClassValue
Cash8.64%
Equity91.34%
Debt0.02%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC
25%₹389 Cr8,413,800
↓ -1,323,200
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 May 16 | HINDUNILVR
20%₹312 Cr1,172,759
↑ 284,187
Nestle India Ltd (Consumer Defensive)
Equity, Since 31 Jul 22 | NESTLEIND
6%₹92 Cr34,518
Godrej Consumer Products Ltd (Consumer Defensive)
Equity, Since 31 Mar 22 | GODREJCP
5%₹80 Cr706,456
↑ 39,482
United Spirits Ltd (Consumer Defensive)
Equity, Since 31 Jan 23 | MCDOWELL-N
4%₹67 Cr598,473
↑ 392,281
Gillette India Ltd (Consumer Defensive)
Equity, Since 30 Jun 21 | GILLETTE
4%₹65 Cr100,459
Dabur India Ltd (Consumer Defensive)
Equity, Since 31 Jan 16 | DABUR
4%₹64 Cr1,145,886
Procter & Gamble Hygiene and Health Care Ltd (Consumer Defensive)
Equity, Since 29 Feb 20 | PGHH
3%₹50 Cr29,014
↓ -839
United Breweries Ltd (Consumer Defensive)
Equity, Since 31 Oct 19 | UBL
2%₹37 Cr209,005
↑ 45,752
Marico Ltd (Consumer Defensive)
Equity, Since 31 Jul 23 | MARICO
2%₹37 Cr671,756
↑ 244,159

3. Mirae Asset Great Consumer Fund

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 CAGR/Annualized return of 17.3% since its launch.  Ranked 7 in Sectoral category.  Return for 2023 was 32.9% , 2022 was 7.2% and 2021 was 33% .

Below is the key information for Mirae Asset Great Consumer Fund

Mirae Asset Great Consumer Fund
Growth
Launch Date 29 Mar 11
NAV (01 Mar 24) ₹78.827 ↑ 0.47   (0.60 %)
Net Assets (Cr) ₹3,094 on 31 Jan 24
Category Equity - Sectoral
AMC Mirae Asset Global Inv (India) Pvt. Ltd
Rating
Risk High
Expense Ratio 1.85
Sharpe Ratio 2.09
Information Ratio 0.6
Alpha Ratio 4.37
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.

DateValue
28 Feb 19₹10,000
29 Feb 20₹11,103
28 Feb 21₹13,330
28 Feb 22₹15,845
28 Feb 23₹17,178
29 Feb 24₹23,901

Mirae Asset Great Consumer Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹493,520.
Net Profit of ₹193,520
Invest Now

Returns for Mirae Asset Great Consumer Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 1 Mar 24

DurationReturns
1 Month 0.7%
3 Month 4.8%
6 Month 13.4%
1 Year 39.1%
3 Year 21.5%
5 Year 19%
10 Year
15 Year
Since launch 17.3%
Historical performance (Yearly) on absolute basis
YearReturns
2023 32.9%
2022 7.2%
2021 33%
2020 11.2%
2019 8.6%
2018 1.9%
2017 51%
2016 2%
2015 3.8%
2014 42.7%
Fund Manager information for Mirae Asset Great Consumer Fund
NameSinceTenure
Ankit Jain5 Oct 167.33 Yr.
Siddhant Chhabria21 Jun 212.62 Yr.

Data below for Mirae Asset Great Consumer Fund as on 31 Jan 24

Equity Sector Allocation
SectorValue
Consumer Cyclical37.42%
Consumer Defensive28.67%
Industrials10.31%
Financial Services7.62%
Communication Services5.79%
Basic Materials5.77%
Health Care3.07%
Asset Allocation
Asset ClassValue
Cash1.34%
Equity98.65%
Other0%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC
7%₹208 Cr4,500,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Sep 19 | BHARTIARTL
6%₹179 Cr1,730,000
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Sep 15 | HINDUNILVR
5%₹168 Cr630,000
Titan Co Ltd (Consumer Cyclical)
Equity, Since 31 Dec 16 | TITAN
5%₹142 Cr387,000
HDFC Bank Ltd (Financial Services)
Equity, Since 31 May 14 | HDFCBANK
4%₹118 Cr690,000
Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Mar 12 | MARUTI
3%₹107 Cr104,000
↓ -7,000
Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 23 | M&M
3%₹99 Cr575,000
↑ 140,000
Ceat Ltd (Consumer Cyclical)
Equity, Since 30 Nov 16 | CEATLTD
3%₹97 Cr400,000
United Spirits Ltd (Consumer Defensive)
Equity, Since 30 Nov 20 | MCDOWELL-N
3%₹95 Cr850,000
Eicher Motors Ltd (Consumer Cyclical)
Equity, Since 31 Aug 23 | EICHERMOT
3%₹89 Cr215,000

(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 CAGR/Annualized return of 16.5% since its launch.  Ranked 16 in Sectoral category.  Return for 2023 was 26.4% , 2022 was 6.1% and 2021 was 30.2% .

Below is the key information for Canara Robeco Consumer Trends Fund

Canara Robeco Consumer Trends Fund
Growth
Launch Date 14 Sep 09
NAV (01 Mar 24) ₹91.93 ↑ 0.71   (0.78 %)
Net Assets (Cr) ₹1,340 on 31 Jan 24
Category Equity - Sectoral
AMC Canara Robeco Asset Management Co. Ltd.
Rating
Risk High
Expense Ratio 2.38
Sharpe Ratio 2.01
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.

DateValue
28 Feb 19₹10,000
29 Feb 20₹11,727
28 Feb 21₹15,162
28 Feb 22₹17,253
28 Feb 23₹18,376
29 Feb 24₹24,808

Canara Robeco Consumer Trends Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹493,520.
Net Profit of ₹193,520
Invest Now

Returns for Canara Robeco Consumer Trends Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 1 Mar 24

DurationReturns
1 Month 1.8%
3 Month 7%
6 Month 15%
1 Year 35%
3 Year 17.8%
5 Year 19.9%
10 Year
15 Year
Since launch 16.5%
Historical performance (Yearly) on absolute basis
YearReturns
2023 26.4%
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%
Fund Manager information for Canara Robeco Consumer Trends Fund
NameSinceTenure
Shridatta Bhandwaldar1 Oct 194.34 Yr.
Ennette Fernandes1 Oct 212.33 Yr.

Data below for Canara Robeco Consumer Trends Fund as on 31 Jan 24

Equity Sector Allocation
SectorValue
Consumer Cyclical30.81%
Financial Services26.14%
Consumer Defensive25.58%
Industrials7.49%
Communication Services5.41%
Health Care2.05%
Asset Allocation
Asset ClassValue
Cash2.52%
Equity97.48%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 21 | ITC
8%₹103 Cr2,225,000
↑ 625,000
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | HDFCBANK
6%₹77 Cr452,000
↑ 245,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 22 | BHARTIARTL
4%₹52 Cr503,000
Trent Ltd (Consumer Cyclical)
Equity, Since 31 May 22 | TRENT
4%₹50 Cr165,000
Titan Co Ltd (Consumer Cyclical)
Equity, Since 30 Apr 21 | TITAN
3%₹46 Cr125,000
Godrej Consumer Products Ltd (Consumer Defensive)
Equity, Since 31 Aug 21 | GODREJCP
3%₹40 Cr350,000
↑ 170,000
Bajaj Finance Ltd (Financial Services)
Equity, Since 31 May 19 | BAJFINANCE
3%₹37 Cr50,000
KEI Industries Ltd (Industrials)
Equity, Since 30 Sep 21 | KEI
3%₹37 Cr112,500
Tata Motors Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | TATAMOTORS
3%₹34 Cr440,000
Zomato Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | 543320
3%₹34 Cr2,750,000
↑ 800,000

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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.

Disclaimer:
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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Subhendu Das, posted on 17 May 21 12:26 AM

Informative and good explanations

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