Mutual Funds pool money from investors and invest in Stocks, Bonds, Money market instruments and other Govt Securities. There are various types of Mutual Funds and there are several Mutual Fund schemes in each category. I have already provided more details on types of mutual funds and on how to pick-up the right mutual fund in one of my previous posts.
Among the sector based mutual funds, FMCG sector mutual funds provided excellent returns over a period of time
Why an investor need to invest in FMCG sector mutual funds ?
FMCG sector is offering consistent maximum returns comparing to equity based mutual funds and comparing to any other sector based mutual funds over a years.
Where does FMCG sector mutual funds invest ?
These mutual funds invest in FMCG blue chip equity stocks, FMCG midcap and FMCG small cap stocks. This sector is ever green sector and offers consistent returns on the good quality FMCG stocks.
What are the risks involved ?
The returns through this FMCG sector are limited. This sector is not to investors who expect > 20% annualized returns.
What are the top performing mutual funds in this sector?
Below are the top 3 FMCG sector mutual funds. The returns are annualized. The longer you invest, you would get maximum returns over a period of time. See the below two FMCG mutual funds which earned 2.5+ times better than a bank fixed deposit
SBI Magnum FMCG Fund
ICICI Pru FMCG Fund (Growth)
Conclusion: FMCG sector mutual funds earned excellent returns and I felt this is one of the best invesment options one can look at it. The returns received are 2.5 times to 4 times compared to a bank fixed deposit. There is very little risk in these sector mutual funds. Pls note that there is no guarantee that the past returns would be received in future. However this can be considered as indication about the growth of the returns.
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