This article is especially for long term traders, who invest and hold for at least 1 year. companies like ITC, Britannia and Hindustan Unilever are some examples of this sector. Basically, this sector is comprised of companies that manufacture daily use items like soap, shampoo, biscuits, hair oil and much more.
This makes FMCG the most loved sector of investors. Almost all the companies in this sector have a great future.
I have explained in previous articles “How to double your money by investing in underlying good fundamental stocks”. This works best for investors having less capital.
Imagine I have two stocks one of $1 and another of $10. The share of $1 would take another $1 to double its price, thus yielding you a 100% return on your investment. But on the other hand, $10 stock would take another $10 to double its price, which might take way too long. Also, $1 stock which is $2 now, would only take another $2 to double. Thus, this way you might earn more from underlying good fundamental stocks.
All the companies in FMCG have pretty much good fundamentals because people would not stop eating biscuits, using soap and shampoo and even won’t stop brushing their teeth with toothpaste.
here is a very good example:
|In 2016||In 2021|
This stock yielded almost 3 times the money my Mother invested. making $1000 to $2743.
To sum up every thing :
What is good about Fast-moving Consumer Goods Sector:
- good fundaments
- low risk
- High profit
- Good for long term
- not suggested to invest for short term
- slow growth
- high competition
Frequently asked questions:
Is FMCG a good sector to invest?
yes, they yield a lot of money when invested in the long term. High fundamental underlying stocks are suggested to invest in. However, Companies like ITC and Hindustan Unilever have a good dominance in this sector.
Which sector should I invest in now?
These are some good sectors which I would suggest you invest in:
- Health sector
these are the most recommended sector
Is FMCG a good sector to invest in India?
Fast Moving Consumer Goods (FMCG) is one of the largest sectors in India with a position of 4. Yes, FMCG is a good sector to invest in. You get a lot of opportunities in this field.
Which sector is growing fast in India?
The service sector is the fastest-growing sector in India for the past 6 years and continues to grow at a much higher rate. It is providing jobs faster than the Indian railway!
Investment/Trading in the securities market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equities, Derivatives, commodities and Currency can be substantial.
These are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.
Please ensure that you understand fully the risks involved and do invest money according to your risk-bearing capacity.