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 |
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
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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
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
SIR I AM READY TO MAKE INVESMENT IN THIS PLAN EVERY MONTH . GIVE ME INFORMETION MY MOB 9916238363.
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,,
Hi. Your website is very useful. Can you please suggest where to invest 10000rs every month so that I get better return after 1 or 5 years?
Hi Suresh,
Would you recommend FMCG Mutual fund at the present scenario?
No Akshay
Dear Suresh,
I have Rs5 lac. I want it to become 1Cr. in 10 years. Suggest me where to invest.
Difficult goal, but still achievable. You need to get 30% annualised returns for Rs 5 L to be come Rs 1 Crore in 10 years. If I am in your place, I would adopt following ways 1) Invest in high risk mutual funds like mid-cap funds or sector funds like Pharma funds 2) Invest in winning mid-cap stocks. Yes it is difficult to define what is “Winning” stocks. The above 2 are only samples, there are various ways and means.
Hi Suresh,
Do you think it is still right time to invest in FMCG funds? How do we know if this sector is out of favour? How to monitor this sector?
Jagan, Sector based funds are always high risk. But in the last 4-5 days, Pharma and FMCG mutual funds have beaten the returns among mutual funds schemes. While they are continously performing better, we should not forget the story of Infrastructure mutual funds which are continously showing losses for the past 5 years. I am not saying the story would repeat here, but we need to reduce the exposure here or atleast predict the slow down of FMCG sector and get out of it
Hi Suresh,
Simply love your post. You have very good knowledge .
I want your help I am novice in Mutual fund. Want to invest around 4000Rs per month. Please guide me which would be the best Mutual fund. Also i want to know is fundsidia.com is good option to start investing in MF, As they are charging nothing .
Regards,
Vishal
pls see my popular post about Top-10 MF SIP’s – https://myinvestmentideas.com/2012/12/top-10-mutual-funds-for-sip-to-invest-in-2013/ for your answers. Regd Fundsindia.com, it is another brokerage firm which offers mutual fund services.
Dear Mr.Vishal,
You can invest Rs.4000 PM in Futuregen Agro Farms ( P ) Ltd.in Monthly Saving Scheme. For Three years period plan the amount payble by you would be Rs.1,44,000 and on marutity you will get Rs.1,87,200 i.e 30 %. You have option of investing in one year and Five years plan.
Regards
Aashish