ICICI Prudential FMCG Fund

ICICI Prudential FMCG Fund is managed by an experienced manager Yogesh Bhat. This fund seeks to optimize the risk-adjusted return by a 'Bottom-up' strategy, to identify and pick stocks in the FMCG Sector. One should avoid investing in a sector fund and rather invest in a Diversified Mid Cap Fund so as to have advantage of kicker returns.

Where does ICICI Prudential FMCG Fund invest your money?

ICICI Prudential FMCG Fund is a sector fund which means most of your money will be invested in companies from the FMCG sector Large cap companies tend to give stable returns. And just to give kicker returns the fund has some exposure in mid cap companies as well. It has 73.18% exposure to large sized companies and 17.11% exposure to mid sized companies and close to 9.71% exposure to small cap companies.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
How has ICICI Prudential FMCG Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in March 1999, your value of investments would be around Rs 11.25 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 2.25 lakhs. The performance has been better than that of the other large cap mutual funds. The fund has been giving at around 17.61% returns every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in it through SIP for the past 5 years today you would have around Rs 12.19 lakhs.

How will ICICI Prudential FMCG Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follow their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid sized companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

How much to invest?

Minimum one time investment is Rs 5,000 and minimum SIP is Rs 1000. Do not make ICICI Prudential FMCG Fund as part of your core portfolio. Core portfolio includes investments that are made for your basic goals and makes up about 70% of your investment portfolio. ICICI Prudential FMCG Fund can be part of your satellite portfolio. Do not make the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
What are the charges applicable?

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of ICICI Prudential FMCG Fund is 2.91%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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