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List of Best FMCG ETFs in India 2026

India’s FMCG sector in 2026 continues to grow steadily, recording 6-8% value growth driven by strong rural demand and consistent essential-goods consumption. With the market expected to cross USD 300 bn, FMCG ETFs offer a structured way to follow broad sector performance without tracking individual companies.

Top FMCG ETFs in 2026

FMCG ETF Stock Screener

FMCG ETF Stock Screener: Analyse & Filter Indian Stocks on Tickertape

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NameStock (1)Sub-SectorSub-SectorMarket CapMarket CapClose PriceClose PricePE RatioPE Ratio1D Return1D Return1M Return1M Return6M Return6M Return1Y Return1Y ReturnPB RatioPB RatioReturn on EquityReturn on EquityROCEROCEDividend YieldDiv YieldDebt to EquityDebt to EquityVolatility vs NiftyVolatility vs Nifty
1.ICICI Prudential Nifty FMCG ETFFMCGIETFEquityEquity23.9623.9654.2554.25---0.51-0.51-4.84-4.84-8.79-8.79-8.59-8.59----------1.031.03

Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.

Overview of Top FMCG ETFs in India

Nippon India ETF Nifty India Consumption

This ETF tracks the Nifty India Consumption Index and provides exposure to companies linked to essential and discretionary spending. It reflects demand trends across FMCG, autos, healthcare and consumer services. The ETF aims to mirror consumption-driven growth by holding sector leaders that benefit from steady household expenditure in India.

Kotak Nifty India Consumption ETF

Kotak Nifty India Consumption ETF follows the Nifty India Consumption Index and invests in companies that cater to everyday consumer needs. The ETF covers sectors such as FMCG, automobiles, and consumer services. It provides a simple way to participate in India’s rising consumption, driven by income growth and lifestyle shifts.

ICICI Pru Nifty India Consumption ETF

ICICI Pru Nifty India Consumption ETF replicates the Nifty India Consumption Index and includes firms associated with both essential and discretionary spending. It captures trends driven by rising consumption in FMCG, retail and autos. The ETF aims to reflect spending behaviour across urban and rural markets through exposure to established consumer companies.

SBI Nifty Consumption ETF

SBI Nifty Consumption ETF tracks the Nifty India Consumption Index and invests in major consumer-driven sectors. The portfolio covers FMCG, autos, and retail companies that benefit from steady demand. The ETF offers broad exposure to India’s growing consumption economy, supported by increasing incomes and wider product adoption across regions.

Axis NIFTY India Consumption ETF

Axis NIFTY India Consumption ETF mirrors the Nifty India Consumption Index and holds companies connected to consumer demand. It spans the FMCG, automotive, retail, and healthcare segments. The ETF reflects India’s expanding consumption cycle driven by rising incomes, changing lifestyles and sustained demand across both essential and discretionary product categories.

What are FMCG ETFs?

FMCG ETFs are exchange-traded funds that track indices made up of Fast-Moving Consumer Goods companies in India. These funds invest in businesses operating in categories like food, beverages, personal care, and household products. They offer a way to follow the overall performance of the FMCG segment through a single market-listed product.

How to Invest in FMCG ETFs?

Here's how you can invest in FMCG ETFs using Tickertape -

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open Tickertape Stock Screener
  3. Filter FMCG ETFs screener based on various parameters such as market cap, close price, past returns and more. You can review this data to evaluate each ETF’s performance trends and determine whether they align with your investment thesis.
  4. Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.

You can also stay updated on alerts and announcements for your favourite stocks with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Advantages of Investing in FMCG ETFs in India

Exposure to a Large and Growing Market

India’s FMCG industry was valued at approximately 211 bn in 2025, reflecting strong consumer demand and broad product adoption across categories. ETFs tracking the sector allow investors to mirror this large and expanding market.

Rural Consumption Momentum

Rural demand has outpaced urban demand, with growth of about 7.7–8.4%, highlighting expanding consumption beyond urban centres. This trend supports diversified exposure in ETFs that include FMCG stocks benefiting from hinterland growth.

Value Growth Across Categories

FMCG value sales grew 11% year on year in late 2025, driven by smaller-pack purchases and pricing strategies, indicating robust underlying consumer demand that ETFs can capture through broad holdings.

Shift Toward Affordable Premium Products

Rural markets now account for over 50% of affordable premium FMCG consumption, pointing to rising disposable incomes and evolving preferences, an important structural trend that sector ETFs can reflect.

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Risks of Investing in FMCG ETFs in India

Volume vs Value Growth Divergence

While the FMCG sector saw 6% volume growth in early FY26, price increases contributed more to value gains. This divergence means ETFs might benefit from pricing trends more than actual unit consumption.

Urban Demand Sluggishness

Urban consumption growth remains modest relative to rural markets, which can lead to uneven performance across large FMCG constituents in ETFs.

Raw Material Cost Volatility

Fluctuations in commodity prices, such as edible oils or agricultural inputs, can compress margins for consumer goods companies, potentially affecting returns for ETFs that include such firms.

GST and Tax Policy Impact

Tax reforms like GST 2.0 have short-term effects on consumption patterns and pricing power for FMCG companies, which may influence underlying ETF performance.

Factors to Consider Before Investing in FMCG ETFs

Index Composition Across Consumption Segments

An ETF’s index may place varying emphasis on staples, personal care, or premium products. Rural consumption currently contributes a large share of volume growth, and indices with exposure across segments can reflect this shift in demand patterns.

Balance of Value vs Volume Growth

Index behaviour can differ based on whether its constituents derive growth from pricing-led value expansion or from actual volume increases. Sustained volume growth often aligns with broader consumption resilience.

Commodity Exposure and Input Costs

Constituents in some indices remain sensitive to movements in edible oils, packaging materials, and other commodities. Volatility in these inputs can influence profitability trends across the FMCG space and shape index performance.

Distribution Reach and Urban–Rural Mix

Companies with wider distribution networks tend to tap into both urban and rural demand. Indices with such constituents may reflect consumption activity more evenly across regions.

E-Commerce and Digital Sales Penetration

Digital adoption continues to rise in FMCG, and companies with higher online sales contribution may show different performance characteristics than traditional, distribution-led players. Indices that blend both can exhibit varied demand dynamics.

Taxation on FMCG ETFs

FMCG ETFs attract capital gains tax depending on the holding period. The tax structure differs for short-term and long-term gains.

Holding Period Tax Treatment
Short-Term (< 12 months ) Gains taxed at a flat rate of 20% (increased from the previous 15%).
Long-Term (> 12 months) Gains taxed at 12.5%. Exemption applies to the first ₹1.25 Lakh of long-term gains across all equity assets in a financial year.

Conclusion

FMCG ETFs provide exposure to India’s essential-goods ecosystem, backed by steady demand patterns, expanding rural consumption and broad category coverage. Their structure allows investors to track sector movement without analysing individual stocks. For deeper evaluation of FMCG-focused ETFs, the Tickertape ETF Screener helps compare historical performance, index composition, risks, and other key metrics in one place.

Frequently Asked Questions on FMCG ETFs

  1. What is an FMCG ETF?

    An FMCG ETF is an exchange-traded fund that tracks an index made up of Fast-Moving Consumer Goods companies, offering broad exposure to the consumption-driven segment of the Indian market.

  2. How do FMCG ETFs work?

    FMCG ETFs buy a basket of FMCG companies that mirror an underlying index. Their price moves based on the combined performance of these firms, similar to index funds but traded like stocks.

  3. Are FMCG ETFs actively or passively managed?

    FMCG ETFs in India are typically passively managed and aim to replicate their benchmark index without stock picking or active management.

  4. What affects the performance of FMCG ETFs?

    FMCG ETF performance is influenced by demand patterns, rural-urban consumption trends, movements in raw material costs, pricing actions, and category-level growth across the underlying companies.

  5. Are FMCG ETFs suitable for beginners?

    FMCG ETFs are passive and represent a consumption-driven segment, but suitability varies by individual goals, time horizon, and risk tolerance.

    Disclaimer: This is for informational purposes only and should not be considered as investment advice.

  6. How are FMCG ETFs taxed in India?

    FMCG ETFs are taxed as equity-oriented products. Capital gains depend on the holding period, and dividends are taxed at the investor’s applicable slab rate.

  7. How to sell fmcg ETFs?

    FMCG ETFs can be sold via your demat account by placing a sell order on the exchange. The transaction completes at the prevailing market price and settles as per exchange rules.