FMCG funds bounce back with double digit growth

Nilesh Shah, CIO, Prudential ICICI Asset Management Company said: ‘‘The FMCG sector was the last one to catch-up with the bull-phase. Subsequently the FMCG funds category, which was dormant for over a year saw some inflows in the recent past. This is also reflected in their returns.’’

Shah added, ‘‘With the BPO and ITeS sectors going great guns, expectations are that certain companies with consumption items are going to do exceptionally well. This because the younger lot employed in these places are hugely adding to the retail spend. Young turks are often seen going on a spending spree, in mall, hotels and pubs, and this trend will only be on the rise.’’ Increase in consumption has also been witnessed in items like breweries and packed foods.

In the FMCG fund category there are three AMCs—Prudential ICICI, SBI Mutual Fund and Franklin Templeton, which are catering to the FMCG-dedicated schemes. Of these, Prudential ICICI was the biggest gainer; it even outperformed the FMCG Fund category. PruICICI FMCG Fund gave a one month return of 14.93 per cent. This was followed by Magnum FMCG of the SBI Mutual Fund that gave returns similar to the FMCG Fund category. Only Franklin Templeton’s Franklin FMCG Fund underperformed in this category. But it gave a positive return of 7.16 per cent.