I am planning to invest in ICICI Prudential FMCG Fund through monthly SIPs. Please comment and advice on the fund selection.
Jayakumar Kannan, Chennai
ICICI Prudential FMCG invests up to 90 per cent of its corpus in equity and related securities of FMCG companies. This is an unrated fund which has earned an annualised return of 23 per cent in the past one year and 17 per cent annualised returns in the past five years. You should be aware that investing in a sector or thematic fund is risky. Invest in these funds only if you understand how the sector is likely to perform and how you can ride the cycle to your advantage. These funds should never be the first funds that you start building your portfolio with and it is preferred to have lump sum investments in these funds instead of SIPs.
