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4 Best Performing FMCG Sector Funds 2023

Updated on November 18, 2024 , 95744 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.

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 (%)	2023 (%)
TATA India Consumer Fund Growth	₹43.7238 ↑ 0.10	₹2,375	-2.7	12	29	17.2	20.2	35.8
ICICI Prudential FMCG Fund Growth	₹475.04 ↓ -1.16	₹1,763	-9.2	2.2	5.9	12.6	13.7	23.3
Mirae Asset Great Consumer Fund Growth	₹89.845 ↑ 0.65	₹4,118	-6	7	22.7	16.4	19.3	32.9
Canara Robeco Consumer Trends Fund Growth	₹105.37 ↑ 0.61	₹1,747	-3.3	6.4	25.9	15.3	20	26.4
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Nov 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 18% 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 (19 Nov 24)	₹43.7238 ↑ 0.10 (0.23 %)
Net Assets (Cr)	₹2,375 on 31 Oct 24
Category	Equity - Sectoral
AMC	Tata Asset Management Limited
Rating	Not Rated
Risk	High
Expense Ratio	0
Sharpe Ratio	1.86
Information Ratio	0.08
Alpha Ratio	4.62
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
31 Oct 19	₹10,000
31 Oct 20	₹9,839
31 Oct 21	₹14,499
31 Oct 22	₹15,493
31 Oct 23	₹17,605
31 Oct 24	₹24,630

TATA India Consumer Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹505,644.
Net Profit of ₹205,644 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 19 Nov 24

Duration	Returns
1 Month	-5.7%
3 Month	-2.7%
6 Month	12%
1 Year	29%
3 Year	17.2%
5 Year	20.2%
10 Year
15 Year
Since launch	18%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Sonam Udasi	1 Apr 16	8.59 Yr.
Aditya Bagul	3 Oct 23	1.08 Yr.

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

Equity Sector Allocation

Sector	Value
Consumer Defensive	38.84%
Consumer Cyclical	34.05%
Industrials	13.43%
Technology	4.53%
Basic Materials	4.33%
Financial Services	2.53%

Asset Allocation

Asset Class	Value
Cash	2.28%
Equity	97.72%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
ITC Ltd (Consumer Defensive) Equity, Since 31 Jul 20 \| ITC	10%	₹249 Cr	4,815,000 ↑ 278,990
Zomato Ltd (Consumer Cyclical) Equity, Since 31 May 23 \| 543320	9%	₹232 Cr	8,478,000
Nestle India Ltd (Consumer Defensive) Equity, Since 31 Aug 17 \| NESTLEIND	5%	₹133 Cr	495,000
Maruti Suzuki India Ltd (Consumer Cyclical) Equity, Since 29 Feb 24 \| MARUTI	5%	₹122 Cr	92,400
Radico Khaitan Ltd (Consumer Defensive) Equity, Since 30 Nov 17 \| RADICO	5%	₹122 Cr	596,500 ↓ -35,000
Tata Consumer Products Ltd (Consumer Defensive) Equity, Since 30 Sep 19 \| 500800	5%	₹113 Cr	948,115
Bikaji Foods International Ltd (Consumer Defensive) Equity, Since 30 Nov 22 \| BIKAJI	4%	₹110 Cr	1,193,774
Trent Ltd (Consumer Cyclical) Equity, Since 31 Jan 18 \| 500251	4%	₹109 Cr	144,000
DOMS Industries Ltd (Industrials) Equity, Since 31 Dec 23 \| DOMS	3%	₹85 Cr	315,000
Dixon Technologies (India) Ltd (Technology) Equity, Since 31 Mar 23 \| DIXON	3%	₹74 Cr	53,399

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 16.3% 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 (19 Nov 24)	₹475.04 ↓ -1.16 (-0.24 %)
Net Assets (Cr)	₹1,763 on 31 Oct 24
Category	Equity - Sectoral
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆
Risk	High
Expense Ratio	2.39
Sharpe Ratio	0.5
Information Ratio	-0.49
Alpha Ratio	-1.66
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
31 Oct 19	₹10,000
31 Oct 20	₹8,943
31 Oct 21	₹12,529
31 Oct 22	₹14,793
31 Oct 23	₹16,921
31 Oct 24	₹19,340

ICICI Prudential FMCG Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹426,080.
Net Profit of ₹126,080 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 19 Nov 24

Duration	Returns
1 Month	-7.5%
3 Month	-9.2%
6 Month	2.2%
1 Year	5.9%
3 Year	12.6%
5 Year	13.7%
10 Year
15 Year
Since launch	16.3%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Priyanka Khandelwal	15 Jun 17	7.39 Yr.
Sharmila D’mello	30 Jun 22	2.34 Yr.

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

Equity Sector Allocation

Sector	Value
Consumer Defensive	89.84%
Health Care	3.06%
Consumer Cyclical	1.33%
Basic Materials	1.17%

Asset Allocation

Asset Class	Value
Cash	4.6%
Equity	95.4%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
ITC Ltd (Consumer Defensive) Equity, Since 29 Feb 12 \| ITC	30%	₹556 Cr	10,737,691 ↑ 600,000
Hindustan Unilever Ltd (Consumer Defensive) Equity, Since 31 May 16 \| HINDUNILVR	18%	₹333 Cr	1,127,298 ↑ 416
Nestle India Ltd (Consumer Defensive) Equity, Since 31 Jul 22 \| NESTLEIND	10%	₹184 Cr	684,474
Godrej Consumer Products Ltd (Consumer Defensive) Equity, Since 31 Mar 22 \| 532424	5%	₹90 Cr	645,389
Tata Consumer Products Ltd (Consumer Defensive) Equity, Since 30 Apr 24 \| 500800	5%	₹87 Cr	728,471
Gillette India Ltd (Consumer Defensive) Equity, Since 30 Jun 21 \| GILLETTE	4%	₹73 Cr	85,511
Dabur India Ltd (Consumer Defensive) Equity, Since 31 Jan 16 \| 500096	4%	₹72 Cr	1,156,097
United Spirits Ltd (Consumer Defensive) Equity, Since 31 Jan 23 \| UNITDSPR	3%	₹65 Cr	405,871
Amrutanjan Health Care Ltd (Healthcare) Equity, Since 31 Jul 24 \| AMRUTANJAN	3%	₹58 Cr	706,798 ↑ 660,000
Britannia Industries Ltd (Consumer Defensive) Equity, Since 31 Aug 13 \| 500825	3%	₹54 Cr	85,958 ↓ -33,000

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 17.5% 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 (19 Nov 24)	₹89.845 ↑ 0.65 (0.73 %)
Net Assets (Cr)	₹4,118 on 31 Oct 24
Category	Equity - Sectoral
AMC	Mirae Asset Global Inv (India) Pvt. Ltd
Rating	☆☆☆☆
Risk	High
Expense Ratio	1.72
Sharpe Ratio	1.42
Information Ratio	0.03
Alpha Ratio	-2.81
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
31 Oct 19	₹10,000
31 Oct 20	₹9,567
31 Oct 21	₹14,767
31 Oct 22	₹16,177
31 Oct 23	₹18,485
31 Oct 24	₹24,913

Mirae Asset Great Consumer Fund SIP 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 19 Nov 24

Duration	Returns
1 Month	-8.9%
3 Month	-6%
6 Month	7%
1 Year	22.7%
3 Year	16.4%
5 Year	19.3%
10 Year
15 Year
Since launch	17.5%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Ankit Jain	5 Oct 16	8.08 Yr.
Siddhant Chhabria	21 Jun 21	3.37 Yr.

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

Equity Sector Allocation

Sector	Value
Consumer Cyclical	44.81%
Consumer Defensive	23.99%
Industrials	8.63%
Basic Materials	7.48%
Communication Services	7.32%
Health Care	3.77%
Financial Services	1.43%

Asset Allocation

Asset Class	Value
Cash	2.58%
Equity	97.42%
Other	0%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Bharti Airtel Ltd (Communication Services) Equity, Since 30 Sep 19 \| BHARTIARTL	7%	₹329 Cr	1,925,000
ITC Ltd (Consumer Defensive) Equity, Since 29 Feb 12 \| ITC	5%	₹238 Cr	4,600,000
Maruti Suzuki India Ltd (Consumer Cyclical) Equity, Since 31 Mar 12 \| MARUTI	5%	₹216 Cr	163,000
Hindustan Unilever Ltd (Consumer Defensive) Equity, Since 30 Sep 15 \| HINDUNILVR	5%	₹213 Cr	720,000
Asian Paints Ltd (Basic Materials) Equity, Since 31 Jan 21 \| 500820	4%	₹196 Cr	590,000 ↑ 32,000
Trent Ltd (Consumer Cyclical) Equity, Since 31 May 23 \| 500251	4%	₹195 Cr	258,000
Zomato Ltd (Consumer Cyclical) Equity, Since 29 Feb 24 \| 543320	4%	₹176 Cr	6,450,000
Kalyan Jewellers India Ltd (Consumer Cyclical) Equity, Since 30 Jun 24 \| KALYANKJIL	4%	₹168 Cr	2,300,000
Titan Co Ltd (Consumer Cyclical) Equity, Since 31 Dec 16 \| TITAN	3%	₹145 Cr	380,000
Jyothy Labs Ltd (Consumer Defensive) Equity, Since 31 Jul 23 \| 532926	3%	₹123 Cr	2,200,000 ↑ 176,057

4. Canara Robeco Consumer Trends Fund

(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 16.8% 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 (19 Nov 24)	₹105.37 ↑ 0.61 (0.58 %)
Net Assets (Cr)	₹1,747 on 31 Oct 24
Category	Equity - Sectoral
AMC	Canara Robeco Asset Management Co. Ltd.
Rating	☆☆☆
Risk	High
Expense Ratio	2.17
Sharpe Ratio	1.97
Information Ratio	0.63
Alpha Ratio	6.16
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
31 Oct 19	₹10,000
31 Oct 20	₹10,093
31 Oct 21	₹15,629
31 Oct 22	₹16,963
31 Oct 23	₹18,431
31 Oct 24	₹25,534

Canara Robeco Consumer Trends Fund SIP 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 19 Nov 24

Duration	Returns
1 Month	-7%
3 Month	-3.3%
6 Month	6.4%
1 Year	25.9%
3 Year	15.3%
5 Year	20%
10 Year
15 Year
Since launch	16.8%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Shridatta Bhandwaldar	1 Oct 19	5.09 Yr.
Ennette Fernandes	1 Oct 21	3.09 Yr.

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

Equity Sector Allocation

Sector	Value
Consumer Cyclical	29.96%
Financial Services	29.71%
Consumer Defensive	19.29%
Industrials	8.11%
Communication Services	6.06%
Health Care	2.38%

Asset Allocation

Asset Class	Value
Cash	4.5%
Equity	95.5%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
ITC Ltd (Consumer Defensive) Equity, Since 30 Sep 21 \| ITC	6%	₹104 Cr	2,125,000
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Mar 22 \| BHARTIARTL	5%	₹81 Cr	503,000
HDFC Bank Ltd (Financial Services) Equity, Since 31 Oct 09 \| HDFCBANK	4%	₹78 Cr	452,000
Zomato Ltd (Consumer Cyclical) Equity, Since 30 Sep 23 \| 543320	4%	₹66 Cr	2,750,000
Trent Ltd (Consumer Cyclical) Equity, Since 31 May 22 \| 500251	4%	₹64 Cr	90,000
ICICI Bank Ltd (Financial Services) Equity, Since 31 Aug 18 \| ICICIBANK	3%	₹57 Cr	442,000
Bajaj Auto Ltd (Consumer Cyclical) Equity, Since 31 Dec 23 \| 532977	3%	₹49 Cr	49,390
Godrej Consumer Products Ltd (Consumer Defensive) Equity, Since 31 Aug 21 \| 532424	3%	₹45 Cr	350,000
Varun Beverages Ltd (Consumer Defensive) Equity, Since 30 Nov 21 \| VBL	3%	₹45 Cr	750,000 ↑ 75,000
United Spirits Ltd (Consumer Defensive) Equity, Since 31 Oct 21 \| UNITDSPR	2%	₹43 Cr	300,000

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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.