India’s fast-moving consumer goods (FMCG) sector remains integral to everyday consumption, covering a broad spectrum of products ranging from packaged foods and personal care items to household necessities. In recent years, the sector has gained growing interest from investors, propelled by enduring structural trends such as rising household incomes, rapid urban expansion, and shifting consumer habits.
It can also be seen that thematic mutual funds with a focus on consumption have emerged as a compelling avenue for long-term investment. These funds allocate capital to companies poised to benefit from the sustained growth in domestic consumer spending, whether directly through products and services or indirectly via enabling industries.
What are FMCG mutual funds?
FMCG mutual funds are classified as sectoral or thematic equity funds that predominantly invest in businesses linked to consumer demand. Their portfolios are generally composed of companies engaged in manufacturing or distributing consumer staples (such as food and hygiene products), discretionary goods (like electronics and apparel), retail services, and other consumption-led sectors.
To achieve broader thematic exposure, some funds also incorporate allocations to adjacent industries, including healthcare, automobiles, and telecommunications. Under SEBI’s regulatory framework, these funds fall under the thematic fund category, with a minimum 80% investment in the chosen theme.
Who should consider investing in FMCG mutual funds?
FMCG mutual funds are well-suited for investors who possess the following characteristics:
- A long-term investment horizon of five years or more
- A high-risk appetite, given the concentrated exposure to a single sector
- A belief in the structural strength of India’s domestic consumption theme
- A desire to complement their core equity holdings with a focused thematic allocation
It is essential for investors to be comfortable with sectoral volatility and to evaluate such funds as part of a diversified portfolio.
Top 10 FMCG-Oriented Mutual Funds as of June 2025
The following mutual funds have been ranked according to their Assets Under Management (AUM), providing insight into their relative size and popularity among investors. All data presented is as of June 30, 2025.
This ranking reflects both investor confidence and fund house positioning within the FMCG theme. It serves as a useful starting point for those evaluating sector-specific investment opportunities.
| Rank | Scheme Name | AUM (₹ Cr) | Benchmark | Fund House | Expense Ratio (Direct) | Fund Manager(s) |
| 1 | Mirae Asset Great Consumer Fund – Direct–Growth | 4,386 | NIFTY India Consumption TRI | Mirae Asset MF | 0.43% | Ekta Gala, Akshay Udeshi |
| 2 | Axis Consumption Fund – Direct–Growth | 4,213 | NIFTY India Consumption TRI | Axis MF | 0.45% | – |
| 3 | SBI Consumption Opportunities Fund – Direct–Growth | 3,186 | NIFTY India Consumption TRI | SBI MF | 0.92% | – |
| 4 | ICICI Prudential FMCG Fund – Direct–Growth | 2,044 | S&P BSE 500 | ICICI Prudential MF | 1.08% | Priyanka Khandelwal |
| 5 | Tata India Consumer Fund – Direct–Growth | 2,457 | NIFTY India Consumption TRI | Tata AMC | 0.72% | – |
| 6 | Nippon India Consumption Fund – Direct–Growth | 2,640 | NIFTY India Consumption TRI | Nippon India MF | 0.55% | – |
| 7 | Aditya Birla Sun Life India GenNext Fund – Direct–Growth | 6,277 | NIFTY India Consumption TRI | Aditya Birla MF | 0.77% | Chanchal Khandelwal, Dhaval Joshi |
| 8 | Canara Robeco Consumer Trends Fund – Direct–Growth | 1,925 | BSE 100 TRI | Canara Robeco MF | – | Ennette Fernandes |
| 9 | Sundaram Consumption Fund – Direct–Growth | 1,596 | NIFTY India Consumption TRI | Sundaram MF | 1.32% | – |
| 10 | HSBC Consumption Fund – Regular–Growth | 1,593 | NIFTY India Consumption TRI | HSBC MF | – | – |
Fund-by-fund overview
1. Mirae Asset Great Consumer Fund
This fund seeks long-term capital appreciation by investing in consumer-facing companies. As of July 30, 2025, it manages ₹4,386 crores in assets with a Net Asset Value (NAV) of ₹92.41. The fund has returned 0.1% over the past year, with a 3-year CAGR of 19.6% and a 5-year CAGR of 22.5%. Its asset allocation reflects a strong tilt towards large-cap companies (65.8%), and its portfolio is diversified across services, consumer staples, and financials. A beta of 1.0 and a positive Jensen’s alpha reflect consistent outperformance.
2. Axis Consumption Fund
Axis Consumption Fund holds ₹4,213 crores in AUM with a NAV of ₹9.44. Although it delivered –3.4% over the last year, its long-term returns remain robust: a 3-year CAGR of 15.3% and a 5-year CAGR of 24.6%. With a dominant large-cap allocation (78.8%) and a conservative beta of 0.9, it suits investors seeking exposure to digital consumption and formalisation trends.
3. SBI Consumption Opportunities Fund
With an AUM of ₹3,186 crores and a NAV of ₹312.4, this fund was among the early entrants in the consumption theme. Its one-year return stands at –5.9%, while 3-year and 5-year CAGRs are 16.7% and 18.9% respectively. The portfolio spans large (43%), mid (25.7%), and small-cap (26.7%) segments and is well-distributed across services, consumer staples, and financials. A low beta of 0.7 suggests relatively lower volatility.
4. ICICI Prudential FMCG Fund
This fund specialises in FMCG companies with recurring revenues. As of 30 July, 2025, it holds ₹2,044 crores in assets and a NAV of ₹489.3. It has posted a 1-year return of –5.5%, a 3-year CAGR of 10.6%, and a 5-year CAGR of 11.6%. With 75.1% in large caps and a beta of 0.8, it is suited to conservative investors prioritising stability.
5. Tata India Consumer Fund
Tata’s fund has delivered strong performance across time horizons: 1-year return of 3.2%, 3-year CAGR of 20.7%, and 5-year CAGR of 23.2%. Its ₹2,457 crore AUM is spread across large (43.4%), mid (28.4%), and small caps (25.4%). A beta of 1.0 and zero Jensen’s alpha indicate performance in line with the benchmark, appealing to investors favouring balanced exposure.
6. Nippon India Consumption Fund
With ₹2,640 crores in AUM and a NAV of ₹193.6, this fund offers exposure to large-cap dominant (46.2%) consumer stocks. Its 1-year return is –1.7%, while 3-year and 5-year CAGRs are 16.4% and 21.2% respectively. A beta of 0.9 and a slightly negative alpha reflect modest underperformance, though its low expense ratio and diversification support long-term potential.
7. Aditya Birla Sun Life India GenNext Fund
The largest fund by AUM at ₹6,277 crores, it tracks companies aligned with urban consumption trends. With a NAV of ₹215.6, it has recorded a 1-year return of 0.2%, a 3-year CAGR of 17.4%, and a 5-year CAGR of 21.2%. The fund's large-cap exposure is 66.8%, and its high equity allocation of 99.3% makes it an ideal choice for those seeking consistent exposure to India’s growth story.
8. Canara Robeco Consumer Trends Fund
This fund adopts a broader thematic approach by including financials and service providers. With ₹1,925 crores in AUM and a NAV of ₹142.4, it has returned 7.4% over the past year, with 3-year and 5-year CAGRs of 14.8% and 18.3% respectively. It maintains 55.3% exposure to large caps and has a beta of 1.1, indicating slightly higher volatility.
9. Sundaram Consumption Fund
The Sundaram Consumption Fund, managing ₹1,596 crores, holds a strong 95% equity allocation and a large-cap weightage of 74.2%. Its NAV is ₹97.4, with annual returns of 6.3%, a 3-year CAGR of 18.6%, and a 5-year CAGR of 20.2%. The beta stands at 0.9, and a positive alpha of 0.1 suggests mild outperformance.
10. HSBC Consumption Fund
This fund holds ₹1,593 crores with a NAV of ₹14.7. Its return profile is 1.3% over 1 year, 16.5% over 3 years, and 21.5% over 5 years. With a beta of 2.6, it is the most volatile in the list. The portfolio includes 38.3% large caps and significant mid and small-cap allocations. It is best suited for aggressive investors seeking high-return potential.
How do FMCG mutual funds operate?
These funds rely on thematic research to construct equity portfolios aligned with long-term consumption trends. Fund managers identify companies expected to benefit from rising consumer demand, adjusting portfolios periodically to reflect macroeconomic shifts and sector performance.
Benefits of investing in FMCG mutual funds
- Targeted exposure to India’s consumption-driven economy
- Potential for alpha through informed stock selection
- Access to professional fund management
- SEBI-regulated transparency and liquidity
- Long-term wealth creation aligned with structural growth
FMCG funds versus other thematic funds
| Parameter | FMCG Funds | Other Sectoral/Thematic Funds |
| Focus | Consumer staples, discretionary goods | Technology, infrastructure, pharma, etc. |
| Risk | High (sectoral concentration) | Very high (narrow focus) |
| Volatility | Moderate to high | High to very high |
| Investment Horizon | Minimum 5 years | Minimum 5 years |
| Benchmark | Consumption-focused indices | Sector-specific indices |
Typical sector allocation
- Consumer Staples: 20% to 35%
- Services and Retail: 15% to 30%
- Automobiles: 8% to 20%
- Communications and Others: 5% to 15%
Factors to consider before investing
- Expense ratio and turnover costs
- Fund manager’s tenure and track record
- Concentration of top holdings
- Performance consistency over various market cycles
- Taxation on capital gains (short-term and long-term)
Conclusion
FMCG-themed mutual funds offer a focused route for investors to tap into India's growing consumer economy. While the potential for long-term capital appreciation is substantial, sector-specific risks and higher costs must be carefully assessed. Aligning fund choice with one’s investment horizon, risk appetite, and cost sensitivity remains key to generating sustainable returns.
