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Nilanjan Dey

Kolkata , June 1

FUNDS dedicated to the fast moving consumer goods industry have consolidated their lead over equity schemes of all other hues.

Prudential ICICI's FMCG fund is leading the pack with a one-year return of 86 per cent, significantly higher than the sector average of 65 per cent.

FMCG funds, also offered by the likes of Franklin Templeton MF and SBI MF, are all well ahead of their nearest rivals - diversified equity funds, with a little over 52 per cent to their credit, and sector-specific funds aimed at technology and auto/auto ancillaries.

As on May 30, the latter have delivered about 49 per cent and 47 per cent respectively during the past year.

Mutual funds circle indicate that FMCG plays have been steadily moving up to the top of the heap.

"The pace of growth has been particularly sharp in the past one year," says a distributor who is strongly advising clients to invest in these schemes, their narrow sectoral bias notwithstanding.

The latest performance figures corroborate his statement. FMCG funds, based on data supplied by Value Research, actually occupied the sixth position in terms of performance two years ago.

With only 50 per cent or so in their kitty, they stood well after other sector-specific schemes (tech, pharma and banking).

The trend started reversing some time later, triggered by improved performance by this group of funds.

Returns over the past six months and three months stood at 23.83 per cent and 11.68 per cent respectively.

These figures have brought FMCG schemes into sharp focus - after all, all other categories were firmly behind them.

It may be mentioned here that sector leader Pru ICICI FMCG Fund currently has a slightly mixed portfolio, courtesy limited allocations to chemicals, metals, textiles and the like.

The scheme's latest portfolio, as provided by Value Research, underlines its exposure to stocks such as Goodlass Nerolac (the top holding, accounting for over 11 per cent), Dabur, Gillette, ITC and Bata.

The scheme, with Rs 35 crore under management at the end of last month, had an NAV of Rs 20.71 as on May 30, 2005.

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FMCG funds outpace other equity schemes

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