Perhaps the only silver lining in the dark clouds hovering over the markets is the encouraging performance of fast moving consumer growth (FMCG) and cement stocks. And when FMCG stocks rise, can FMCG funds be far behind!

Performance of key FMCG stocks

(Rs)	22-May-00	29-May-00	% change
Hindustan Lever	2,207	2,555	15.8%
Nestle	310	396	27.7%
Cadbury	783	933	19.2%
P&G	640	730	14.1%

It would be difficult to put one's finger on what triggered the rise in FMCG stocks like Hindustan Lever, Nestle, Cadbury and Procter & Gamble. However, transition from (overvalued) technology stocks to (undervalued) FMCG stocks could be one very good reason. And the meteorological department's forecast of normal monsoon for the year was the proverbial icing on the cake.

Well, if lay investors haven't realised the value in FMCG stocks as yet, the experts (read fund managers) most certainly have. The market buzz has it that fund managers are buying FMCG stocks in a big way.

Open-ended FMCG Schemes	NAV (Rs)	Last week	Last month	Last year	Since inception
Kothari Pioneer FMCG (Gr)	11.13	4.40%	-4.40%	6.30%	12.60%
Pru ICICI FMCG Fund (Gr)	9.41	4.80%	-2.40%	0.00%	-8.50%
Magnum Sector Funds - FMCG	8.13	-0.50%	-10.20%	0.00%	-21.20%

Out of the three FMCG funds, only SBI MF's Magnum has shown a marginal fall of 0.5% in the last week. However, all three funds are in the negative in the last month. But that should not set any alarms bells ringing in the minds of investors, as losses are still very marginal and a lot lower than those of technology funds. We maintain our view FMCG funds offer good value at current prices.

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