Biscuits, soaps, and shampoos are among the everyday products people purchase. Fast-moving consumer goods (FMCG) companies are often considered a defensive bet during market downturns. Their stability has made them a popular option amongst investors. By investing in an FMCG mutual fund, investors can gain exposure to the sector with ease. However, it is important to know what an FMCG fund really is and how investing in the best FMCG mutual funds can help you.
Fast-moving consumer goods (FMCG) companies produce and sell everyday essentials such as toiletries, packaged food, and beverages.
FMCG mutual funds are equity-oriented sector-focused mutual funds. The primary objective of an FMCG fund is to invest in the FMCG companies that can offer stability and steady growth in the long term. An FMCG mutual fund offers investors exposure to several FMCG companies, which can be a valuable addition to one’s portfolio. The nature of the products and the sustained growth in consumption in India have driven consistent interest in the FMCG sector.
— Registered with SEBI, AMFI & BSE
— Paperless sign up on web & app
— Expert recommendations
— ZERO fees !
| Fund Name | Category | Risk | NAV | Expense Ratio | 1Y Returns | 3Y Returns | 5Y Returns | 7Y Returns | 10Y Returns | Rating | Fund Size (in Cr) | Exit Load |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Groww Nifty Non-Cyclical Consumer Index Fund | Equity | Very High | 10.01 | 0.62 | -6.4% | -- | -- | -- | -- | -- | ₹41 | Exit load of 1%, if redeemed within 30 days. |
Tata India Consumer Fund | Equity | Very High | 51.22 | 0.76 | 3.8% | 17.6% | 16.4% | 16.3% | 17.9% | 4 | ₹2,590 | Exit load of 0.25% if redeemed within 30 days. |
Mirae Asset Great Consumer Fund | Equity | Very High | 104.41 | 0.62 | -1.6% | 13.5% | 15.1% | 15.9% | 17.0% | 4 | ₹4,455 | Exit load of 1% if redeemed within 1 year |
Axis Consumption Fund | Equity | Very High | 8.99 | 0.94 | -2.7% | -- | -- | -- | -- | -- | ₹2,869 | Exit Load for units in excess of 10% of the investment,1% will be charged for redemption within 90 Days. See more |
Nippon India Consumption Fund | Equity | Very High | 206.67 | 0.69 | -5.4% | 13.5% | 15.9% | 17.2% | 14.1% | 4 | ₹2,442 | Exit load of 1% if redeemed within 1 month. |
SBI Consumption Opportunities Fund | Equity | Very High | 325.16 | 0.94 | -6.7% | 10.7% | 15.1% | 15.2% | 15.4% | 2 | ₹2,932 | Exit load of 0.10% if redeemed within 30 days. |
ICICI Prudential Bharat Consumption Fund | Equity | Very High | 25.67 | 1.18 | -1.9% | 14.0% | 15.0% | 14.4% | -- | 5 | ₹3,064 | Exit load of 1% if redeemed within 3 months. |
Motilal Oswal Consumption Fund | Equity | Very High | 9.34 | 0.55 | -- | -- | -- | -- | -- | -- | ₹1,028 | Exit load of 1%, if redeemed within 90 Days. |
HDFC Nifty India Consumption Index Fund | Equity | Very High | 9.48 | 0.45 | -- | -- | -- | -- | -- | -- | ₹146 | - |
Tata BSE Multicap Consumption 50:30:20 Index Fund | Equity | Very High | 9.22 | 0.34 | -- | -- | -- | -- | -- | -- | ₹44 | Exit load of 0.25%, if redeemed within 15 Days. |
HDFC Consumption Fund | Equity | Very High | 13.51 | 1.13 | -3.5% | -- | -- | -- | -- | -- | ₹997 | Exit load of 1%, if redeemed within 30 days. |
Mirae Asset Nifty India New Age Consumption ETF FoF Direct-Growth | Equity | Very High | 8.93 | 0.11 | -3.3% | -- | -- | -- | -- | -- | ₹19 | Exit load of 0.05%, if redeemed within 15 days. |
Motilal Oswal Nifty MidSmall India Consumption Index Fund | Equity | Very High | 9.35 | 0.65 | -7.2% | -- | -- | -- | -- | -- | ₹23 | Exit load of 1%, if redeemed within 15 days. |
SBI Nifty India Consumption Index Fund | Equity | Very High | 9.84 | 0.44 | -0.7% | -- | -- | -- | -- | -- | ₹269 | Exit load of 0.25%, if redeemed within 30 days. |
LIC MF Consumption Fund | Equity | Very High | 9.42 | 0.9 | -- | -- | -- | -- | -- | -- | ₹472 | Exit Load for units in excess of 12% of the investment,1% will be charged for redemption within 90 days.
See more |
An FMCG mutual fund can be a suitable investment option for:
Before making an investment decision, it is vital for investors to consider their objectives and goals. Having a clear understanding of the risk appetite and expected returns can help one make well-informed decisions. An FMCG mutual fund is an ideal investment option for investors seeking to generate consistent returns that compound over the long term. It is also relatively stable, making it suitable for investors who want lower-risk equity exposure.
Macroeconomic trends impact the FMCG sector. It is important to track inflation, interest rates, and income growth. Investors should consider how consumer spending habits have changed, as well as the impact of macroeconomic factors on consumption and demand.
Researching the fund’s past performance is an integral part of the decision-making process. Compare how the fund has fared against benchmark indices and its peers. Investors should also understand how the fund allocates its capital and its portfolio composition to get a comprehensive view of the fund.
Picking the most cost-effective mutual fund is essential to safeguard returns. Investors should know the key costs and charges, such as the expense ratio, transaction charges, and the mutual fund's exit load. Comparing them with other FMCG mutual funds can help investors select the appropriate fund.
The FMCG sector is considered defensive, as it demonstrates resilience even during economic downturns and volatile market conditions. Investing in an FMCG mutual fund can help investors reduce the impact of unfavourable market conditions.
FMCG mutual funds are a great way to generate long-term wealth. Instead of high growth, FMCG mutual funds aim to generate consistent returns that compound in the long run. Moreover, the nature of products and rising consumption support the FMCG sector in generating consistent revenues and growth.
Investors can also generate additional income from an FMCG mutual fund through dividends. FMCG mutual funds invest in several companies that regularly pay dividends, which can help investors generate extra income or reinvest in the fund.
A primary risk of FMCG mutual funds is exposure to a single sector. Since an FMCG mutual fund is concentrated in the FMCG sector, underperformance or a downturn in the sector can have a major impact on the fund's performance.
Although FMCG companies have the potential to generate steady returns, the growth potential is limited. It is very unlikely for these companies to deliver extraordinarily high returns in a shorter term.
Economic cycles play a significant role in the equities market. During periods of economic expansion, cyclical sectors tend to benefit and outperform defensive sectors like FMCG. Poor market timing can lead to investors missing out on growth in other sectors.
Short-term capital gains on investments held for under one year are taxed at 20%, plus applicable cess and surcharge.
Long-term capital gains on holdings held for over one year enjoy an annual exemption of ₹1.25 lakh, with gains beyond this threshold taxed at 12.5%, as announced in Budget 2024.
Dividends are added to your total income and taxed as per your slab rate, with 10% TDS if the dividend income exceeds ₹5,000.
An FMCG mutual fund invests in companies in the FMCG sector. These companies produce and distribute essential goods, including snacks, beverages, personal care products, and toiletries.
Investing in an FMCG mutual fund can be beneficial because the sector is mostly defensive and stable, especially during market downturns. It also has the potential to generate consistent returns over a long period.
FMCG funds offer stability and lower volatility compared to other sectors. However, these funds are equity-oriented and are impacted by market and economic conditions.
Yes, FMCG mutual funds can be good for beginners as they offer professional management and exposure to a key defensive sector.
FMCG mutual funds perform the best in the long run. The ideal investment horizon is 5 years or more.
Short-term gains on holdings held for less than one year are taxed at 20% plus cess and surcharge. Long-term gains on investments held for over a year are exempt up to ₹1.25 lakh annually, with the excess taxed at 12.5% as per the 2024 Budget. Dividends are taxed at slab rates, with 10% TDS applicable on income above ₹5,000.
Now let us jump and check about these top 15 mutual fund schemes.
Fund Performance: The Groww Nifty Non-Cyclical Consumer Index Fund comes under the Equity category of Groww Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Groww Nifty Non-Cyclical Consumer Index Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹41Cr |
| 1Y Returns | -6.4% |
Fund Performance: The Tata India Consumer Fund has given 17.56% annualized returns in the past three years and 16.35% in the last 5 years. The Tata India Consumer Fund comes under the Equity category of Tata Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Tata India Consumer Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹2,590Cr |
| 1Y Returns | 3.8% |
Fund Performance: The Mirae Asset Great Consumer Fund has given 13.54% annualized returns in the past three years and 15.09% in the last 5 years. The Mirae Asset Great Consumer Fund comes under the Equity category of Mirae Asset Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Great Consumer Fund via lump sum is ₹5,000 and via SIP is ₹99.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹4,455Cr |
| 1Y Returns | -1.6% |
Fund Performance: The Axis Consumption Fund comes under the Equity category of Axis Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Axis Consumption Fund via lump sum is ₹100 and via SIP is ₹500.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹2,869Cr |
| 1Y Returns | -2.7% |
Fund Performance: The Nippon India Consumption Fund has given 13.47% annualized returns in the past three years and 15.95% in the last 5 years. The Nippon India Consumption Fund comes under the Equity category of Nippon India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Consumption Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹2,442Cr |
| 1Y Returns | -5.4% |
Fund Performance: The SBI Consumption Opportunities Fund has given 10.73% annualized returns in the past three years and 15.09% in the last 5 years. The SBI Consumption Opportunities Fund comes under the Equity category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI Consumption Opportunities Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹2,932Cr |
| 1Y Returns | -6.7% |
Fund Performance: The ICICI Prudential Bharat Consumption Fund has given 14.01% annualized returns in the past three years and 14.98% in the last 5 years. The ICICI Prudential Bharat Consumption Fund comes under the Equity category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Bharat Consumption Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹3,064Cr |
| 1Y Returns | -1.9% |
Fund Performance: The Motilal Oswal Consumption Fund comes under the Equity category of Motilal Oswal Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Consumption Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹1,028Cr |
| 1Y Returns | -- |
Fund Performance: The HDFC Nifty India Consumption Index Fund comes under the Equity category of HDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HDFC Nifty India Consumption Index Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹146Cr |
| 1Y Returns | -- |
Fund Performance: The Tata BSE Multicap Consumption 50:30:20 Index Fund comes under the Equity category of Tata Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Tata BSE Multicap Consumption 50:30:20 Index Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹44Cr |
| 1Y Returns | -- |
Fund Performance: The HDFC Consumption Fund comes under the Equity category of HDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HDFC Consumption Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹997Cr |
| 1Y Returns | -3.5% |
Fund Performance: The Mirae Asset Nifty India New Age Consumption ETF FoF Direct-Growth comes under the Equity category of Mirae Asset Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Nifty India New Age Consumption ETF FoF Direct-Growth via lump sum is ₹5,000 and via SIP is ₹99.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹19Cr |
| 1Y Returns | -3.3% |
Fund Performance: The Motilal Oswal Nifty MidSmall India Consumption Index Fund comes under the Equity category of Motilal Oswal Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Nifty MidSmall India Consumption Index Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹23Cr |
| 1Y Returns | -7.2% |
Fund Performance: The SBI Nifty India Consumption Index Fund comes under the Equity category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI Nifty India Consumption Index Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹269Cr |
| 1Y Returns | -0.7% |
Fund Performance: The LIC MF Consumption Fund comes under the Equity category of LIC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in LIC MF Consumption Fund via lump sum is ₹5,000 and via SIP is ₹200.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹472Cr |
| 1Y Returns | -- |
Explore all Mutual Funds on Groww