The SBI FMCG Fund has been in the market for around 22 years showing growth each year. As consumer goods are always in demand, it acts as a favour to the consumption funds. The fund follows the bottom-up technique and consumption theme while picking equities for investment.
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SBI FMCG Fund is the former name of the SBI Consumption Opportunities Fund. It is an open-ended fund that invests in equities in the consumption-oriented sector and other consumption-related instruments. The fund invests in stocks of companies that sell products directly to their consumers.
The State Bank of India Mutual Fund House (SBIMF) offers the fund and has around INR 732.96 crores of assets under management (AUM) at present. It invests 80% of its fund in the consumption sector and the rest 20% in other minor sectors of money instruments.
The major shareholders of this fund are Page Industries Ltd, ITC Ltd, Bharti Airtel Ltd, Relaxo Footwears Ltd, and Emami Ltd.
Plans under SBI FMCG Fund are:
Different variants of plans under SBI FMCG fund are:
Further, it should be mentioned that the Regular Plan is for those investors who require a distributor/mediator for buying stocks with the fund. On the other hand, the Direct Plan is for those investors who don't need a distributor and directly buy stocks along with the fund. The absence of mediators ensures higher returns of up to 1.07% in the direct plan.
Name of the fund |
Previously known as SBI FMCG Fund The present name is SBI Consumption Opportunities Fund. |
Fund House |
State Bank of India Mutual Fund House |
Fund Type |
Equity type with consumption theme |
Open/close |
Open-ended |
Launch date |
The regular plan – 14 July 1999 The direct plan – 1 Jan 2013 |
Benchmark |
Primary benchmark – Nifty India Consumption Index Secondary benchmark – S&P BSE Sensex tri |
Entry load |
Nil |
Exit load |
0.10% exit load for exit within 30 days of allotment. Exit load after 30 days of allotment is Nil. |
Minimum investment |
A lump sum of INR 5,000 |
Additional investment |
INR 1,000 |
Risk factor |
Very high risk |
Lock-in period |
No lock-in period |
The SBI FMCG Fund is a long-time investment plan that aims to increase its investor’s capital gain. The fund is now known as Consumption Opportunities Fund. It invests in the best opportunities of equities in the consumption market, including consumer durables, non-durables, textiles, entertainment, hotels, and travel services.
As the demand for consumer goods never falls, the future of consumption-oriented funds is beneficial. For diversifying investments, the fund profoundly analyzes the trends and avoids allocating money to companies that may incur losses. Hedging is a marketing strategy to tackle or cut probable losses.
SBIMF experts do their best to avoid risks to a greater extent as the equity market is never free of risks. Hence, there is no 100% assurance of meeting investment objectives. Investors must be aware of capital loss.
Time |
Percentage return |
6 months |
21.84% |
1 year |
63.73% |
3 year |
9.32% |
5 year |
14.13% |
Time |
Percentage return |
6 months |
22.48% |
1 year |
65.44% |
3 year |
10.52% |
5 year |
15.35% |
Pros |
Cons |
Low expense ratio at 1.45% |
The very high-risk factor involved. |
The consumer goods market rarely faces a lag. Hence, the consumption funds profit. |
The expense ratio for the regular plan is higher than the other consumption opportunities fund in the market. |
Money doubled every 4-5 years |
Average risk management |
Repurchase available |
SBI FMCG Fund is managed by the State Bank of India Mutual Fund house. It is one of the oldest fund houses and has a vast experience of 30 years in the money market. Moreover, the State Bank of India is one of the largest banks of India and also one of the most trusted.
At SBIMF, experts devise fund plans keeping in mind the requirements of investors and the market trends. Their vision is to become the most trusted money managers. Keeping in view their track record, they have been successful in doing so. Before urging any investor, they aim at educating them about the mutual funds. It further helps maintain transparency between the investors and the fund house.
SBIMF is managed by two banks primarily:
To conclude, SBI FMCG Fund is an excellent opportunity for investors interested in the consumer markets and those willing to take a few risks. The fund return percentages are positive. It always crosses the benchmark set and successfully fulfils the aim of the investors.
The fund house and the fund have already had a long run in the market, which helps in increasing the reliability factor. Therefore, if investors want to gain good and consistent returns on their money, they can choose this fund.
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.