Top 5 Sector Mutual Funds to invest in 2016 that can double or triple your money

Top 5 Sector Mutual funds to invest in India in 2016Top 5 Sector Mutual Funds to invest in 2016


In my journey of earning 1 Crore in last 5 years, I have come across several mutual fund investments which can double or triple the investment. Now I have tightened my belt and looking to double and triple or even 6 times of my money in the short to long term. I have identified top-5 mutual funds to invest which can double and triple money faster than I thought. Which are top-5 sector mutual funds to invest in 2016 which can double your money? What about growing money by 6 times in next 10 years. Here is my analysis on top-5 mutual funds that can give superior returns in next 3 to 10 years. You should consider the risks indicated in below article before investing in such sector based mutual funds.

Top 5 Sector Mutual Funds to invest in 2016


These top 5 sector mutual funds in India have been analyzed and shortlisted based on below key parameters.

  • Picked based on highest returns received in the last 5 to 10 years across various sectors.
  • These funds invest only in specific sectors and are very high risk. One has to keep an eye on the sector and in case of any downturn in this sector, one should exit.
  • Ranked based on short term returns too. Since most of the funds gave negative returns in the last 1 years due to market volatility, we have picked-up the funds which were less downside compared to peers in the last 3 months to 1 year.
  • Since these are sector based funds, Crisil or Value Research Online would give less importance in ranking and they would avoid giving ranking for such funds.
  • AUMs (Assets under management) > 100 Crores. This proves investor confidence among these top mutual funds.

Also Read: Top 10 Large Cap Mutual funds to invest in 2016 in India

Top#1: UTI Transportation and Logistics Fund


This has been one of my favorite sectors based mutual fund. This fund objective to provide Capital appreciation through investments in the stocks of the companies engaged in providing transportation services, design, manufacture, distribution or sale of transportation equipment and companies in the logistics sector.

Reasons to invest: This fund gave 45% annualized returns in last 3 years, 26% annualized returns in last 5 years and 16% annualized returns in last 10 years. This fund gave consistent returns in long run.

  • If you would have invested Rs 1 Lakh, 10 years back, the investment amount along with returns would have been Rs 4 Lakhs i.e. 4 times of your investment.
  • If you would have invested Rs 1 Lakh, 5 years back, the investment amount along with returns would have been Rs 3.2 Lakhs i.e. 3.2 times of your investment.
  • If you would have invested Rs 1 Lakh, 1 years back, the investment amount along with returns would have been Rs 3 Lakhs i.e. 3 times of your investment.
  • If you would have invested in this scheme through SIP of Rs 1,000 per month for 5 years, your total investment would have been Rs 60,000 and your invested value along with returns would have been Rs 131,000.

If you observe, you would have made money even in the short term or even in the long term. This invests in various sub sectors in transportation and logistics. If you can take risk, invest some money into this fund.

Top#2: SBI Pharma Fund


I love this mutual fund scheme. Pharma and Healthcare are evergreen sectors. This fund's objective to to seek opportunities in Pharma Stocks in India.

Reasons to invest: This fund gave 32% annualized returns in last 3 years, 25% annualized returns in last 5 years and 14% annualized returns in last 10 years. This fund gave consistent returns in long run.

  • If you would have invested Rs 1 Lakh, 10 years back, the investment amount along with returns would have been Rs 3.7 Lakhs i.e. 3.7 times of your investment.
  • If you would have invested Rs 1 Lakh, 5 years back, the investment amount along with returns would have been Rs 3 Lakhs i.e. 3 times of your investment.
  • If you would have invested Rs 1 Lakh, 3 years back, the investment amount along with returns would have been Rs 2.2 Lakhs i.e. 2.2 times of your investment.
  • If you would have invested in this scheme through SIP of Rs 1,000 per month for 5 years, your total investment would have been Rs 60,000 and your invested value along with returns would have been Rs 116,000.

If you observe, you would have made money even in the short term or even in the long term even in this fund too. This invests in pharma sector where you do not expect any downturn in the long run. If you can take some risk, invest some of your portfolio into this mutual fund scheme.

Top#3: Reliance Pharma Fund


This is my second favorite scheme in Pharma sector. Pharma and Healthcare are evergreen sectors. This fund's objective to to seek opportunities in Pharma Stocks and other fixed income securities in associated companies in this sector.

Reasons to invest: This fund gave 26% annualized returns in last 3 years, 19% annualized returns in last 5 years and 21% annualized returns in last 10 years. This fund consistent returns in long run.

  • If you would have invested Rs 1 Lakh, 10 years back, the investment amount along with returns would have been Rs 6.7 Lakhs i.e. 6.7 times of your investment. Yes, you heard it right, it is 6.7 times of your investment.
  • If you would have invested Rs 1 Lakh, 5 years back, the investment amount along with returns would have been Rs 2.3 Lakhs i.e. 2.3 times of your investment.
  • If you would have invested Rs 1 Lakh, 3 years back, the investment amount along with returns would have been Rs 2 Lakhs i.e. 2 times of your investment.
  • If you would have invested in this scheme through SIP of Rs 1,000 per month for 5 years, your total investment would have been Rs 60,000 and your invested value along with returns would have been Rs 100,300.

If you observe, you would have made money even in the short term or even in the long term even in this fund too. In the long run, your investment would have boosted like anything. This invests in pharma sector where you do not expect any downturn in the long run. If you can take some risk, invest some of your portfolio into this mutual fund scheme.

Also Read: Which are the good tax saving mutual funds to invest in 2016?

Top#4: SBI FMCG Fund


I have been asking investors to hold any new investments into FMCG mutual funds as short term direction was not clear. Now one can look to invest in these sector funds as we could see improvement in FMCG stocks. This fund's objective is to maximize investments by looking opportunities in FMCG stocks.

Reasons to invest: This fund gave 16% annualized returns in last 3 years, 20% annualized returns in last 5 years and 17% annualized returns in last 10 years. This fund consistent returns in long run.

  • If you would have invested Rs 1 Lakh, 10 years back, the investment amount along with returns would have been Rs 4.8 Lakhs i.e. 4.8 times of your investment.
  • If you would have invested Rs 1 Lakh, 5 years back, the investment amount along with returns would have been Rs 2.5 Lakhs i.e. 2.5 times of your investment.
  • If you would have invested Rs 1 Lakh, 3 years back, the investment amount along with returns would have been Rs 1.6 Lakhs i.e. 1.6 times of your investment.
  • If you would have invested in this scheme through SIP of Rs 1,000 per month for 5 years, your total investment would have been Rs 60,000 and your invested value along with returns would have been Rs 88,200.

If you observe, you would have made money even in the short term or even in the long term even in this fund too. This invests in FMCG sector where you do not expect any downturn in the long run. However, margins of the companies in this sector would continue to be under pressure. If you can take some risk, invest some of your portfolio into this mutual fund scheme.

Top#5: ICICI Pru Technology Fund


Information Technology sector has been growing year on year. Several IT Stocks have been doing well in the last few years. The scheme invests in equity and related securities of technology and its dependent companies. A large share of the AUM will be invested in the stocks under the Benchmark Index, however, the scheme may also invest in other companies which form a part of the Information Technology Services Industry.

Reasons to invest: This fund gave 28% annualized returns in last 3 years, 16% annualized returns in last 5 years and 14% annualized returns in last 10 years. This fund consistent returns in long run.

  • If you would have invested Rs 1 Lakh, 10 years back, the investment amount along with returns would have been Rs 3.7 Lakhs i.e. 3.7 times of your investment.
  • If you would have invested Rs 1 Lakh, 5 years back, the investment amount along with returns would have been Rs 2.1 Lakhs i.e. 2.1 times of your investment.
  • If you would have invested Rs 1 Lakh, 3 years back, the investment amount along with returns would have been Rs 2.1 Lakhs i.e. 2.1 times of your investment.
  • If you would have invested in this scheme through SIP of Rs 1,000 per month for 5 years, your total investment would have been Rs 60,000 and your invested value along with returns would have been Rs 100,600.

If you observe, you would have made money even in the short term or even in the long term even in this fund too. This invests in FMCG sector where you do not expect any downturn in the long run. However, margins of the companies in this sector would continue to be under pressure. If you can take some risk, invest some of your portfolio into this mutual fund scheme.

Complete list of top 5 mutual funds of 2016 in table form


Top 5 Sector Mutual Funds to invest in 2016

Also Read: Best Mid-cap Mutual Funds to invest now in India in 2016 

Are these any risks involved?


These are sector based funds, hence are high risk. However if you observe, this risk is mostly when you want to get out of such schemes within short term. In long run of 5 to 10 years, you would get superior returns. If you do not need money in short term to medium term, you should invest some of your portfolio in these sector based funds. If you can get good returns in medium term, you can always sell them and book profits.

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Suresh
Top 5 Sector Mutual Funds to invest in 2016

39 comments

  • shankar prasad roy

    I want to invest 2000 rs. Per month in sector fund fir long term i.e. 10 to 15 years. Please suggest best 5 sector mutual fund.

  • Dilip

    How to rotate sector funds. If we hold very long sectorial cycles will be missed and returns average out. Pl suggest . thanks .

  • Satish

    Hi,

    I have selected below 9 funds to build my portfolio. Could you please suggest whether there are any better opportunities which I might have overlooked:

    1) Large cap: SBI Bluechip Fund
    2) Mid cap: HDFC Midcap Opp Fund + Franklin India Prima Fund
    3) Small Cap: Franklin India Smaller Companies Fund + DSP Blackrock Micro cap fund
    4) Multi Cap: Birla Sunlife equity fund
    5) Sector Funds: SBI Pharma + ICICI Pru Banking
    6) Tax Saver: DSP Blackrock Tax Saver Fund

    Thank you.

    Regards,
    Satish

  • Anu

    Hi Suresh,

    Thanks for the great assistance on MF.I had asked this earlier in my comments, but would like to know, How tax and TDS calculated for NRI? Are we allowed to invest in any fund except PPF?

    It would be greatly helpful if you could elaborate on this context!

  • Sree

    As an NRI following your blog, you're doing a fabulous job. Have you started consultancy services yet?

    If someone has to invest in SBI Pharma and UTI Transportation and Logistics, how do we go about getting this done from abroad? All my other mutual funds are taken care of by my account manager at the bank but these funds don't fall under their radar for some reason.

    Thanks for whatever advice you can provide.

    • Hi Sree, thanks for your compliments. I provide only free service :-). If you have any MF account, you can invest in the funds indicated by you. 

    • inder singh

      hi sree,
      you may directly open the account/folio by visiting the fund house web site and may invest on-line in these MF directly. eg. if you want to SBI pharma fund, just go to sbimutual fund web portal, create a folio, online and can invest. for more you may contact to the customer care personnel of that MF portal.

      cheers!
      inder singh

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