The Hindu Business Line : <I>How the FMCG funds stack up </I>

FMCG funds, which have in the last one year outperformed sectoral fund categories such as pharma, auto and banking, should find more takers once the sector shows discernable improvement, mutual fund sources feel.

Says Mr Harsha Upadhyaya, Vice-Presidentat UTI MF's department of securities research, investors, even those who have not been considering these actively, may be willing to take bigger calls on select stocks if growth prospects become evident.

The three funds (Franklin, Prudential ICICI and SBI) have delivered a one-year average score of 22.8 per cent as on September 21. MF sources also refer to the possibility of FMCG players taking up new expansion and acquisition projects to strengthen their market share.

The reference is to the likes of Marico, which has acquired a brand in Egypt, and Godrej (considering a capex) and HLL (merging its subsidiary Modern Food).

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