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Sector Fund Investments

Invest in ICICI Prudential FMCG fund only when you are optimistic about the sector’s prospects

I am planning to invest in ICICI Prudential FMCG Fund through monthly SIPs. Please comment and advice on the fund selection.
— Jayakumar Chakka

ICICI Prudential FMCG invests only in FMCG stocks. FMCG as a sector has done very well in the past four years since the market went into a tailspin in 2008. The fund has earned an annualised return of 35.79 per cent in the past three years and 15.36 per cent annualised returns in the past five years. Investment in a sector fund should be done only to fill a gap in an existing equity portfolio or to emphasize a sector in your portfolio you are very optimistic about.



This article was originally published on December 22, 2011.

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