The consistent performance of FMCG mutual fund schemes over various time-frames have revived an old debate: Should regular investors opt for them? FMCG fund category has been consistently performing in one-, three-, five- and 10-year time periods. A recent report by Crisil said that the FMCG sector is likely to report 11-12 per cent rise in revenues in fiscal 2019, up 300-400 basis points from 8 per cent in fiscal 2018.
However, despite its consistent performance, most mutual fund advisors are not in favour of retail investors betting big on the sector. “FMCG funds are consistent but they are essentially sector schemes and fundamentally retail investors shouldn’t have more than 10 per cent in their portfolio,” says Pankaj Gera, a Certified Financial Planner (CFP), based in Delhi
