Food and agriculture sector has strong growth potential globally driven by population growth, rising incomes and changing consumption patterns. However, selecting the right mutual funds focused on this sector requires research. Here is an overview of top 4 equity funds providing exposure to food sector stocks and companies.
High historical returns from food sector equity funds
Equity mutual funds focused on food, agriculture and allied sectors have delivered strong historical returns owing to the defensive nature and growth prospects of this sector. For instance, top funds like Mirae Asset Agri & Food Fund have given over 20% annualized returns over last 5 years.
Consider funds with quality stock selection process
While evaluating food sector equity funds, analyze the stock selection approach. Actively managed funds which follow systematic stock identification models focusing on quality management, efficient operations and sustainable growth trends are good options for long term investors.
Optimize risk through multi-cap exposure
Invest across market capitalization spectrum through multi-cap food sector equity funds to balance out volatility. This allows tapping into steady large caps as well as higher growth potential in mid & small caps related to emerging sub-themes.
Mirae Asset Agri & Food Fund delivers solid performance
With a 5 year CAGR of 22%, Mirae Asset Agri & Food Fund tops the category owing to its well defined stock selection approach focusing on market leaders across agri input, food processing, logistics and distribution companies.
To summarize, Mirae Asset Agri & Food Fund, ICICI Pru Agriculture Fund, Kotak Agri Fund and Nippon India Agri Fund are top equity schemes worth considering for gaining exposure to food and agriculture sector stocks.