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ICICI Prudential FMCG Fund

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
  • ICICI Prudential FMCG Fund - Direct Plan - Dividend
  • ICICI Prudential FMCG Fund - Direct Plan - Growth
  • ICICI Prudential FMCG Fund - Regular Plan - Dividend
  • ICICI Prudential FMCG Fund - Regular Plan - Growth
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Exit load 1% if the amount being withdrawn or switched has been invested for less than 1 year.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
  • Rs. 5,000 for fresh investments.
  • Rs. 1,000 for additional investments.
SIP
  • Rs. 1,000 for monthly SIP
  • Rs. 5,000 for quarterly SIP
Product label
  • The risk rating of this fund is High.
  • It is aimed at those who are looking for wealth creation solutions.
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SWP The minimum amount that can be withdrawn through an SWP is Rs. 500.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Redemption The minimum amount that can be withdrawn is Rs. 500.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
  • ITC Ltd. 37.26%
  • Eveready Industries (India) Ltd. 5.71%
  • Colgate - Palmolive (India) Ltd. 4.89%
  • Britannia Industries Ltd. 4.76%
  • United Spirits Ltd. 4.09%
  • VST Industries Ltd. 3.84%
  • United Breweries Ltd. 3.56%Marico Ltd. 3.13%
  • Tata Global Beverages Ltd. 2.78%
  • Agro Tech Foods Ltd. 2.54%
  • Bajaj Corp Ltd. 2.01%
79.00%
Consumer Durables
  • Bata India Ltd. 4.28%
  • V.I.P. Industries Ltd. 2.70%
  • Havells India Ltd. 1.89%
  • Tara Jewels Ltd. 1.13%
  • La Opala RG Ltd. 0.42%
10.40%
Short Term Debt and other current assets 5.17%
Chemicals
  • Pidilite Industries Ltd. 3.62%
3.62%
Textile Products
  • Page Industries Ltd. 1.34%
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)
  • Regular Plan Growth Option: Rs. 160.17
  • Regular Plan Dividend Option: Rs. 67.92
  • Direct Plan Growth Option: Rs. 162.19
  • Direct Plan Dividend Option: Rs. 80.78
Expense ratio
  • ICICI Prudential FMCG Fund Direct Plan - 0.66
  • ICICI Prudential FMCG Fund Regular Plan
    • First 100 crores of daily net assets - 2.5%
    • Next 300 crores of daily net assets - 2.25%
    • Next 300 crores of daily net assets - 2%
    • Balance daily net assets - 1.75%
    • Additional charge of a maximum of 30 bps on sales outside top 15 cities

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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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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