On Fast Track

Between June 2004 to June 2005, the FMCG (fast moving consumer goods) sector has been one of the best performing sectors. The BSE FMCG Index has moved up by a handsome 55 per cent during this period. Consequently, it has also been one of the favourite sectors among funds, which is clearly visible in the numbers. In June 2004, diversified equity funds had an average exposure of 6.46 per cent to the FMCG sector, which has risen to 8.66 per cent in June 2005. Let's take a closer look at investments by open-ended funds in four interesting FMCG stocks. Hindustan Lever When you talk of FMCG stocks, HLL is the first company that comes to your mind. Though the stock price has appreciated by nearly 29 per cent between June 2004 and June 2005, the price movement has shown many swings. The open-ended funds sold the maximum number of shares of this stock during the last year. UTI Mutual Fund turned out to be the biggest seller, selling more than 92 lakh shares during the last year. As many as 16 funds of UTI Mutual were invested in the stock as on June 30, 2004 but as the price appreciated it went on a profit-booking spree. In June 2005 only five funds from UTI Mutual have HLL. During June 2005, two of its funds UTI CRTS 81 and ULIP sold nearly 9 lakh shares and completely exited the stock. HDFC Mutual bought maximum number of shares (29.52 lakh) during the last year. As on June 30, 2005, seven of its funds own more than 30 lakh shares. Four funds added the maximum number of shares during this period: Magnum Equity, DSPML Equity, Tata Pure Equity and ING Vysya Equity. Birla Dividend Yield Plus, Magnum FM

This article was originally published on September 21, 2005.