How do Consumption Mutual Funds Work?

FMCG (Fast-Moving Consumer Goods) mutual funds, also referred to as consumer mutual funds or consumption mutual funds, focus on investing in equity shares of companies operating in the consumer goods sector. These companies produce everyday essentials such as food, beverages, personal care products, and household items, ensuring steady demand regardless of economic cycles.

FMCG mutual funds capitalise on the consistent revenue and growth potential of such businesses. By investing in a diversified portfolio of top FMCG companies, these funds aim to deliver long-term wealth creation for investors.