Best Investment Options – 2 best FMCG sector mutual funds you should buy in 2012

Overview
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

 

MF Scheme

Aum
(Rs. Crores)

1 Year

2 Years

3 Years

5 Years

SBI Magnum FMCG Fund

84

25%

25%

38%

24%

ICICI Pru FMCG Fund (Growth)

157

21%

23%

33%

16%

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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Suresh
Myinvestmentideas.com

 

15 comments

  • J Anand

    Dear Sir,
    I am also New to Mutual Fund & I would like to Invest in MF on SIP System per month & getting higher returns over the next three year

    Please Suggest me

    Thanks,

    Anand

    • don’t invest in mutual funds for short term of 3 years. If you are long term investor, invest for 8 to 10 years go for top-10 mutual funds which I recommended and link available on home page

  • Anirudh Mathur

    Hi Suresh, Ashish,

    I am new to Mutual funds & would like to invest 5000/- per month to get some higher returns over the next couple of years.
    Can you please suggest any low risk scheme for the same?

    Thanks
    Anirudh

  • PANCHAKASHRAYYA.

    SIR I AM READY TO MAKE INVESMENT IN THIS PLAN EVERY MONTH . GIVE ME INFORMETION MY MOB 9916238363.

  • aanand

    Dear Sir,
    i would like to invest around 3 lakh in some funds to double it in 3 years,with limited risk what investment plan do you suggest,,

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