Stock market has been volatile in the last 1 year. In the last couple of weeks, Nifty has climbed higher, however, yet to sustain and move upwards. In this volatile market, I was checking which fund has given the high number of positive returns in the last 12 months and could find interesting facts. I thought of sharing such analysis with readers, which might be useful. In this article we would talk about the Mutual Fund that generated positive returns for 10 months out of last 12 months in 2022.
Also Read: This Mutual Fund gave 20% SIP returns in last 20 years
How we filtered this Mutual Fund?
We have considered all the mutual fund schemes in India. The list of direct mutual funds comes to 536 nos excluding ETFs.
We have filtered mutual fund that generated highest count of positive returns every month for the last 12 months. Means if one would have invested on 1st and sold on 30th, they would have made a profit. This is irrespective of the percentage of returns.
Out of 530 odd mutual funds, only one mutual fund has consistently generated positive returns for 10 out of 12 calendar months and 5 more mutual funds that generated positive returns for 9 out of 12 months. The one that generated highest count of positive returns for 10 out of 12 months is ICICI Pru FMCG Mutual Fund – Direct Plan.
This Mutual Fund has generated positive returns between 0.3% to 10.1% returns from Dec-21 to Nov-22 along with 1.8% to 2% negative returns for 2 calendar months during a similar period.
About ICICI Pru FMCG Mutual Fund
Investment Objective
To generate long term capital appreciation through investments made primarily in equity, equity related securities forming part of the FMCG sector. However, there is no assurance or guarantee that the investment objective of the Scheme would be achieved.
Minimum investment in this Mutual Fund is Rs 5,000.
There is no entry load.
There is an exit load of 1% if redeemed or switched to another scheme of the same AMC within 15 days.
Its current AUM is Rs 1,213 Crores.
The benchmark of the fund is NIFTY FMCG TRI
Its current expense ratio is 1.45%, which is little higher.
Where does this fund invest?
While this fund invests in FMCG related stocks, let us look at the current composition.
This fund invests in 22 stocks as of now.
The top stock holdings of this fund are ITC, HUL, Nestle India, Britannia, Dabur India, P&G, Gilette India, Jyothi Labs, Zydus Welness etc.,
How is the Performance of the Mutual Fund?
A) Month wise returns (Dec-21 to Nov-22)
| Funds | Monthly returns |
|---|---|
| Dec-21 | 0.59% |
| Jan-22 | 0.34% |
| Feb-22 | -2.01% |
| Mar-22 | 3.27% |
| Apr-22 | 3.18% |
| May-22 | 1.02% |
| Jun-22 | -1.86% |
| Jul-22 | 10.19% |
| Aug-22 | 2.01% |
| Sep-22 | 0.36% |
| Oct-22 | 1.58% |
| Nov-22 | 2.31% |
B) Annualised returns
- 1 Year – 21%
- 3 Years – 18%
- 5 Years – 13%
- 10 Years – 15%
C) SIP Returns
- 3 Years – 23% (10K monthly SIP investment would have been 3.6 Lacs and this investment would have grown to Rs 5 Lacs)
- 5 Years – 17% (10K monthly SIP investment would have been 6 Lacs and this investment would have grown to Rs 9.2 Lacs)
- 10 Years – 17% (10K monthly SIP investment would have been 12 Lacs and this investment would have grown to Rs 23 Lacs)
Also Read: Best Sector Mutual Funds to invest
Should you invest in ICICI Pru FMCG Mutual Fund?
This Mutual Fund generated consistent positive returns in the 10 months out of last 12 months. While I indicated several times earlier, one should invest in mutual funds for medium term to long term to get superior returns, this article is just to focus any fund that has been consistent performers in short term too.
This fund is a sector fund and high risk. However, FMCG is one of the evergreen sectors. If you are a high risk investor and want to make a sector fund as part of your overall mutual fund portfolio, you can invest in such funds for medium term perspective. However, one should limit such funds’ exposure as this is sector fund, which can be cyclical in nature and the performance can up or down in short to medium term. Medium to low risk investors should avoid such mutual fund schemes.
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Hi Suresh
If one invest in index fund lets say 5 lakhs lumpsum and then nifty goes up by 8-10%, then will the 5 lakhs also grow by 8-10% ?
Yes except for tracking error and expense ratio. Hence invest in funds that has low tracking error and low expense ratio. I personally invest in UTI Nifty 50 Index Fund considering some of these pointers.
Thanks much brother. Navi seems to be the lowest as of now with 0% exit. What is your opinion, though i know its new fund but at end of day its index fund.
Hello Nanmith, Its new AMC, hence I am little concerned as to how they can run the business if they offer at such low expenses. I am personally investing in UTI and HDFC for index funds which are large AMCs and offer low expense ratio.
Hi Suresh
Thanks for your quick response as always.
Navi fund though new has zero exit and very low expense ratio.
Also the dividend from Index funds gets paid out to us?