I am planning to invest in ICICI Prudential FMCG Fund through monthly SIPs. Please comment and advice on the fund selection
Jayant Chakka, Pune
This fund is 18 years old and has been a consistent performer, despite being a sector fund. The reason for the superior performance has both to do with the sector itself, which is not very volatile and the fact that FMCG is an all season sector. The fund’s performance in the past one year was 21 per cent and over a ten year period, it has posted 17.2 per cent returns. However, remember that investment in a sector fund should be done only to fill a gap in an existing equity portfolio or to emphasise a sector in your portfolio you are very optimistic about. If this is your first investment, it is a bit risky and should be reviewed and you must definitely add a diversified equity fund to your portfolio.
