FMCG is an acronym for Fast Moving Consumer Goods. FMCG is a classification that refers to wide range of frequently purchased consumer products including: toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents, other non-durables such as glassware, bulbs, batteries, and plastic goods such as buckets. ‘Fast Moving’ is in opposition to consumer durables such as kitchen appliances that are generally replaced less than once a year. The category may include pharmaceuticals, consumer electronics and packaged food products and drinks, although these are often categorised separately. The term Consumer Packaged Goods (CPG) is used interchangeably with FMCG. One of the leading sources in FMCG is Bierman Bierman FMCG Acronyms and initialisms are abbreviations formed from the initial letter or letters of words, such as NATO and XHTML, and are pronounced in a way that is distinct from the full pronunciation of what the letters stand for. ... Fast Moving Consumer Goods are products that have a quick shelf turnover, at relatively low cost and doesnt require a lot of thought, time and financial investment to purchase. ...
Three of the largest and most well known examples of FMCG companies are Nestlé, Unilever and Procter & Gamble. Unilever is an Anglo-Dutch company which owns many of the worlds consumer product brands in foods, beverages, cleaning agents and personal care products. ...
FMCG funds have outperformed their diversified peers in controlling volatility, a fact that is revealed by lower Standard Deviation figures for FMCG funds.
Another area where FMCG funds have stolen a march over diversified equity funds is in generating a superior risk-adjusted return (refer to higher Sharpe Ratios of FMCG funds).
FMCG portfolios display a higher degree of consistency in stock picks compared to diversified equity funds where even the most conservative fund is like to witness some reallocation in terms of stocks and sectors.