The FMCG Fund offered by ICICI Prudential is an equity fund that invests mainly in the consumer goods sectors like food, apparel, retail, etc. It has been around since 1999 and has provided good returns on investments. Investments in this fund can begin with as little as Rs. 5,000 and it also offers options like systematic investments, withdrawals and transfers. The portfolio maintained by this fund is divers and can even include investments in companies like Bata, Britania, UB, etc.
Type or nature of fund
This is an open-ended FMCG sectoral fund.
Investment objective
The objective of the investments made in this fund are to provide returns over a long period of time. It does so by investing mainly in the FMCG sector and tries to maintain itself as a sharp, focused and thematic fund.
Fund information
| Inception date | 31 March 1999 |
| CRISIL rank | This product has not been rated by CRISIL |
| Plans | Regular and Direct |
| Options | Growth and Dividend |
| Schemes |
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| Entry load | Nil except when the scheme is invested in through certified distributors. In such a case the investor may have to pay an upfront commission to the distributor. |
| Exit load | 1% if the amount being withdrawn or switched has been invested for less than 1 year. |
| Minimum investment |
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| SIP |
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| Product label |
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| Benchmark | CNX Nifty CNX Nifty is a free floating market capitalisation weighted index that is used by the NSE as an index for equities. It is owned by IISL and covers 22 sectors in the Indian markets. |
| SWP | The minimum amount that can be withdrawn through an SWP is Rs. 500. |
| STP | Available but for STP Out, the minimum amount that can be transferred is Rs. 10 and the maximum tenure is 10 years. |
| Redemption | The minimum amount that can be withdrawn is Rs. 500. |
Fund manager(s)
Vinay Sharma
- Education: MBA from IIM Calcutta and CFA from AIMR USA
- Past experience:
- ICICI Prudential Asset Management Limited – PMS Fund Manager
- ICICI Prudential Asset Management Limited – Equity Analyst
- AIG Global Asset Management India Limited - Equity Analyst -
- J.P.Morgan India Private Limited - Equity Analyst
- Other funds managed
- ICICI Prudential Dividend Yield Equity Fund
- ICICI Prudential Select Large Cap Fund
- ICICI Prudential Multiple Yield Funds
- ICICI Prudential Capital Protection Oriented Funds
- ICICI Prudential Growth Fund Series 2
- ICICI Prudential Growth Fund Series 4
- ICICI Prudential Growth Fund Series 5
- ICICI Prudential Growth Fund Series 6
- ICICI Prudential Banking and Financial Services Fund
Investment philosophy or strategy
This scheme applies a bottom-up philosophy to picking the stocks that it invests in. It also concentrates on picking equities from the FMCG sector or sub sectors of it. It may also invest a small amount in other sectors but only as a defence against excessive movement in the FMCG sector.
Portfolio (As of January 31, 2015)
| Company/Sector | Investment |
Consumer Non Durables
|
79.00% |
Consumer Durables
|
10.40% |
| Short Term Debt and other current assets | 5.17% |
Chemicals
|
3.62% |
Textile Products
|
1.34% |
Risk measures
| Sharpe ratio | 1.13 |
| Alpha | |
| Portfolio beta | 0.83 |
| Std deviation | 13.46% (Annual) |
Performance
| AUM | Rs. 216.55 crores (As of January 31, 2015) |
| NAV (As of January 31, 2015) |
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| Expense ratio |
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Returns
| 2013-2014 (Absolute Returns) | 2012-2013 (Absolute Returns) | 2011-2012 (Absolute Returns) | Compound Annual Growth Rate (Since Inception) | |
| Scheme | 32.46% | 9.27% | 40.81% | 18.94% |
| NIFTY | 31.39% | 6.76% | 27.7% | 13.81% |
| NAV (in Rs.) | 116.2 | 106.34 | 75.52 | - |
The best way to put the growth of the FMCG Fund into perspective is to do so with an example. Suppose Rs. 10,000 was invested in the fund at the time of inception and the NAV is assumed to be Rs. 10, then the value of the invested amount would be Rs. 1,53,920 according to the scheme. According to Nifty, the value of the investment would be Rs. 76,830.
Expert view of the fund
Investments in this fund are made mostly in the FMCG sector with consumer non-durables getting the lion's share of the investment, according to the portfolio as of Jan 2015. 80% was invested in this sector and about 10% in the consumer durables sector. The performance of the fun has exceeded that of its benchmark consistently since 2011. It has also provided such growth that an investment of Rs. 10,000 in the fund would now be valued at Rs. 1.5 lakhs.
How to apply
There are two options available to investors when it comes to investing in this fund. The first option is that of approaching the company branches or distributors who can help investors fill out forms and understand the fund better.
The other option is to apply for these funds online, through the ICICI Prudential website where both new and existing investors can register and invest in funds of their choice. The payments for these investments can also be made through cheques, demand drafts, debit cards and NEFT/RTGS transfers.
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