Sector based Mutual Funds – which are the best performing mutuals funds you should look for investment option

Overview

When I was writing the articles on FMCG, Pharma and Technology sector based mutual funds, I was  getting enquiries from my friends to suggest which are the best performing mutuals you should look for investment options?

Why an investor need to invest in sector based mutual fund?

Specific sectors are performing well over a period of time. Hence mutual fund companies started floating sector based mutual funds in FMCG, Banking, Pharma, Technology etc.,

These mutual funds invest in specific sectors blue chip equity stocks, midcap and small cap stocks.

What are the top performing mutual funds in various sectors?

Below are the top performing sector based mutual funds. The returns are annualized.

Sector

Mutual Fund Scheme

AUM

1yr

2yr

3yr

5yr

Banking and Finance

Reliance Banking Fund (G)

1671.49

-2%

-1%

15%

15%

Banking and Finance

Religare Banking Fund -RP (G)

41.22

-1%

1%

14%

0%

Banking and Finance

ICICI Pru Bkg & Fin Serv-RP(G)

143.94

2%

2%

13%

0%

Banking and Finance

UTI Banking Sector (G)

358.29

-3%

-1%

12%

10%

Banking and Finance

Sahara Bkg & Fin. Services (G)

20.36

-4%

-3%

12%

0%

 

 

 

 

 

 

 

Technology

ICICI Pru Tech. Fund (G)

106.56

4%

5%

18%

3%

Technology

SBI Magnum IT Fund

40.96

-3%

-1%

12%

-2%

Technology

Franklin Infotech Fund (G)

114.28

-3%

-1%

12%

5%

Technology

Tata Life Sc & Tech Fund (G)

44.08

-5%

0%

8%

6%

 

 

 

 

 

 

 

Pharma & Healthcare

Reliance Pharma Fund (G)

584.07

8%

9%

29%

19%

Pharma & Healthcare

UTI Pharma & Health (G)

94.02

7%

10%

24%

15%

Pharma & Healthcare

SBI Magnum Pharma Fund (G)

42.39

16%

15%

24%

9%

 

 

 

 

 

 

 

FMCG

SBI Magnum FMCG Fund

83.61

32%

23%

34%

25%

FMCG

ICICI Pru FMCG Fund (G)

156.72

23%

22%

27%

17%

I have considered 3 years as a period for analysis and below are the observations:

Banking and Finance: The investment in this sector based mutual funds gave annualized returns of 12% to 15% over a 3 years period. This is just above the bank fixed deposit rates. Hence my advice is stay away from these sector mutual funds as there are other sector based mutual funds which are offering best returns on the investments options available.

Technology sector: The investment in this sector based mutual funds gave annualized returns of 8% to 18% over a 3 years period. This is just above the Banking and finance sector based mutual funds. Thought they are offering an average returns, my advice is to invest small amounts in this sector as there are other sector based mutual funds which are offering best returns on the investments options available.

Pharma sector: The investment in this sector based mutual funds gave annualized returns of 24% to 29% over a 3 years period. These are very good returns and which provides 3 times higher comparing to a normal bank fixed deposit rates. If you observe, the investment done in this sector for 1 or 2 years has returned only 8% to 16%, hence if you invest for 3 years +, then you would be able to get benefit from this sector based mutual funds. I felt this is one of the top investment option one should look for.

FMCG sector: The investment in this sector based mutual funds gave annualized returns of 27% to 34% over a 3 years period. These are very good returns and which provides 3.5 times higher comparing to a normal bank fixed deposit rates. If you observe, the investment done in this sector for 1 or 2 years has returned 22% to 32% which are also good, hence whether it is short term or long term, the FMCG sector based mutual funds has provided very good returns. This is one of my favourite sector looking for good investments options.

Conclusion: Out of all the sector based mutual funds, FMCG and Pharma sector based mutual funds are performing good and providing excellent returns to the investors. However just don’t invest all your money in these sectors. Invest part of your investment in such good sectors to get maximum benefit

Happy investing in good investment options !!!

Have you enjoyed this post? Please provide your valuable suggestions to improve future articles. If you are excited, share the link in Twitter/Face book

Suresh
Myinvestmentideas.com

2 comments

  • sreedhar

    thought the analysis is good, does it works for future ? We keep seeing in mf ads that past performance may or may not repeat right ?

    • Sreedhar, if you observe BSE is howering around 16K to 18K in the last 2 years. But did the mutual funds were able to provide good returns ? I agree the performance may not repeat unless fund managers make a 'fresh' effort to benefit the investors. Invest in mutual funds for longer time to get benefitted.

Leave a Reply

Your email address will not be published. Required fields are marked *