Top 3 Consistently Performing Consumption Funds

The fast-moving Consumer Goods (FMCG) sector, encompassing everything from toothpaste to packaged foods, is a reliable bellwether of the Indian economy. These everyday essentials are constantly in demand, making FMCG funds a popular choice for investors seeking stability with growth potential. However, with many consumption-focused funds available, identifying those with a consistent track record of strong performance can be challenging. This article dives into the top 3 consistently performing consumption funds in India.

The following table shows the consistently performing top three consumption funds in the last 5 years:

Nippon India Mutual Fund

Nippon India Mutual Fund offers a sectoral investment. As of May 6th, 2024, the NAV for this fund is Rs 178.2107. The fund holds a relatively small portion of the market with a fund size of Rs 731.16 crore, which is about 0.25% of investments in its category. It has a higher-than-average expense ratio of 2.34%, compared to the category average of 2.12%.

Performance-wise, this scheme has achieved a return of 39.39%, outperforming the Nifty India Consumption TRI benchmark at 37.7%, yet it trails behind the category average of 44.19%. The top three sectors in which the fund is invested are Consumer Staples at 32.39%, Services at 20.22%, and Automobile at 20.1%.

Canara Robeco Consumer Trends Fund

Canara Robeco Consumer Trends Fund, categorized under sectoral funds, is managed by Canara Robeco Mutual Fund. As of May 6th, 2024, the fund’s NAV stands at Rs 98.07. This fund has amassed a fund size of Rs 1411.14 crore, accounting for 0.48% of the total investments in its category. It charges an expense ratio of 2.13%, slightly above the category average of 2.12%.

In performance terms, the scheme has returned 38.5%, compared to the S&P BSE 100 TRI’s 30.23% and a category average of 44.19%. The top three sectors in which the fund invests are Consumer Staples (21.74%), Financial (19.11%), and Services (18.97%).

SBI Consumption Opportunities

SBI Consumption Opportunities Fund is a sectoral mutual fund managed by SBI Mutual Fund, focusing on consumption opportunities. As of May 6th, 2024, the fund’s NAV is Rs 282.8479. It has a total fund size of Rs 2026.18 crore, which is 0.69% of the investment in its category, and an expense ratio of 2.09%, slightly below the category average of 2.12%. The fund is not ranked by Crisil and has shown a return of 33.7%, which is lower than its benchmark, the Nifty India Consumption TRI at 37.7%, and the category average of 44.19%. The fund’s primary investments are in Consumer Staples (33.4%), Services (20.49%), and Consumer Discretionary (17.18%).

Investing in consumption funds like Nippon India, Canara Robeco, and SBI provides a stable investment avenue with substantial returns, despite varying performances compared to benchmarks and averages.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.