{"id":365,"date":"2020-04-07T12:06:22","date_gmt":"2020-04-07T12:06:22","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=365"},"modified":"2020-04-07T12:09:20","modified_gmt":"2020-04-07T12:09:20","slug":"why-fmcg-stocks-should-be-part-of-your-portfolio","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/why-fmcg-stocks-should-be-part-of-your-portfolio\/","title":{"rendered":"Why FMCG Stocks Should be Part of Your Portfolio?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Fast-moving consumer goods (FMCG)\nsector is the next safe-haven for investors who incurred huge losses in the\nstock market amid coronavirus pandemic. FMCG is the 4<sup>th<\/sup> largest\nsector of the Indian economy comprises of companies who manufacture non-durable\ngoods for mass consumption. &nbsp;Britannia,\nITC, Godrej Industries, HUL, Colgate-Palmolive (India) etc. \u2013 are a few\nexamples of companies from FMCG sector that are listed on major exchanges of\nIndian stock market. FMCG sector is the one that stood tall post-financial\ncrisis-2008 and likely to continue its performance even in the times of\nCOVID-19 outbreak. FMCG stocks considered defensive, which means stocks are\nin-demand even when the bears take control of the capital markets.<\/p>\n\n\n\n<p>It is simply because, irrespective of how the economy behaves, the demand for consumer goods never remains stable. When the economy is going through a slowdown, people reduce spending money on discretionary products or items such as a car, major appliances, and technology gadgets but continue to buy necessary fast-moving consumer goods such food items, OTC-medication, baked goods, toiletries, office supplies and cleaning products among other non-durable goods. The overall performance of the FMCG sector remains attractive to investors especially when the economy is going through a lot.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#FMCG_Sector_in_India\" title=\"FMCG Sector in India\">FMCG Sector in India<\/a><\/li><li><a href=\"#Why_FMCG_Stocks_Should_be_Part_of_Your_Portfolio\" title=\"Why FMCG Stocks Should be Part of Your\nPortfolio?\">Why FMCG Stocks Should be Part of Your\nPortfolio?<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">FMCG Sector in India<\/h2>\n\n\n\n<p>As we mentioned above, the FMCG\nis the 4<sup>th<\/sup> largest sector in India with Household and Personal Care\naccounts for more than 50 per cent. The urban segment is the largest\ncontributor which accounts for around 55 per cent of overall revenue share generated\nby the FMCG sector. The semi-urban and rural segments are also driving the FMCG\nmarket where the rural segment accounts around 36 per cent of overall FMCG\nspending. <\/p>\n\n\n\n<p>The sector has grown into one of\nthe top contributors to the Indian Gross Domestic Product (GDP) and continue to\nbe a significant contributor as the population and consumption are rising. The\nsector is benefiting with the arrival of 100 per cent foreign direct investment\n(FDI) and Goods &amp; Services Tax (GST). Not just that, many online portals\nalso play a key factor behind propelling demand amongst the youth by\nfacilitating more convenient means for consumers. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why FMCG Stocks Should be Part of Your\nPortfolio?<\/h2>\n\n\n\n<p>Well, <em>why they shouldn\u2019t be?<\/em> \u2013 As long as industrialization continues\nwithin the country along with the government policies to upgrade rural areas,\nthe demand for consumer goods will always be there and grows with time. The\nmajor population of India country still under besides rural areas where the potential\nfor upgradations is very high. With the rising demand, the companies continue\nto grow in numbers and FMCG sales, thereby offering healthy returns to those\nwho invest in FMCG stocks. <\/p>\n\n\n\n<p>The second important reason to\nhave FMCG stocks within your portfolio is the rising competition within the\nsector that bounds companies to come up with new product segments to keep with\nthe competition. In the pursuit of doing better, the companies focus on their qualities,\nstrategies, and other aspect areas that benefit end-users. Last but not the\nleast, the start-up culture within the FMCG sector fasten the pace of facilitating\nservices via online and door-to-door modes. The online businesses have changed\nthe face of the FMCG sector, made it into a more attractive one to invest in\nit. <\/p>\n\n\n\n<p>Besides, the FMCGstocks are considered defensive, means even if there a bear run in the stock market, the stocks are steadier than most of the other stocks and sectors. So, having FMCG stocks within the portfolio will ensure that your portfolio does not become the victim of slowdown or any adverse movement in the market. <\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong>&nbsp;The views and opinions at Invest19.com are\nexpressed by the experts are for educational purposes, not to profile any\nprofessional advice to encourage users to make investments. Invest19.com\nadvises users to check with the certified experts before making any investment\ndecisions.<\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 5,989<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"365\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">3    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Fast-moving consumer goods (FMCG) sector is the next safe-haven for investors who incurred huge losses in the stock market amid coronavirus pandemic. FMCG is the [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/why-fmcg-stocks-should-be-part-of-your-portfolio\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":368,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7],"tags":[87],"class_list":["post-365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market","category-investment","tag-fmcg-stocks"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=365"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/365\/revisions"}],"predecessor-version":[{"id":367,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/365\/revisions\/367"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/368"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}