6 Best Mutual funds which investment money in short term
Every week I keep getting messages asking whether there are any mutual funds which can double money in short term of 3 to 4 years. There is only one category of mutual funds where investors have gained superb money i.e. Sector based mutual funds. There are few mutual funds across various sectors like Technology, FMCG, Pharma and transport sector which outperformed and investors gained solid returns in the last 3 years. Many of the mutual funds have doubled the investment in 3 to 4 years period.
Best Mutual funds across various sectors
While there are several sectors, we felt Pharma, Healthcare, FMCG have been doing well in the last 5-7 years.
1) Reliance Pharma Fund
This mutual fund invests across Pharma and health care stocks. Due to growing requirement of Pharma and healthcare area, this sector is expected to continue to grow. Hence investing in such mutual fund would provide excellent returns. Annualized returns in the last 5 years are as below:
- 1 Year – 25%
- 3 Years – 11%
- 5 Years – 20%
2) UTI Pharma and Health Pharma Fund
This mutual fund too invests across Pharma and health care stocks. Bench mark for this mutual fund is S&P Healthcare Index. Pharma and healthcare category average have yielded annualized returns of 10% in last 5 years. However this mutual fund has exceeded this and provided annualized returns of 25% in last 5 years. Hence investing in such mutual fund would add flavor to your portfolio. Annualized returns in the last 5 years are as below:
- 1 Year – 18%
- 3 Years – 13%
- 5 Years – 25%
3) ICICI Pru FMCG Fund
This mutual fund invests in fast moving consumer goods (FMCG). Everyone would agree that the demand for FMCG goods would continue to grow. Hence investing in such mutual fund would provide excellent returns in long run. Annualized returns in the last 5 years are as below:
- 1 Year – 32%
- 3 Years – 29%
- 5 Years – 25%
4) Franklin Infotech Fund
This mutual fund invests in Information Technology and ITES related stocks. Due to outsourcing restrictions from US, IT industry has been slowdown for the past few years, However, still this mutual fund has performed well by investing in growing IT companies. Currently due to fall in dollar to rupee value, the IT stocks are expected to generate higher profits, hence IT stock prices have increased. This could be temporary. Annualized returns in the last 5 years are as below:
- 1 Year – 33%
- 3 Years – 9%
- 5 Years – 16%
5) ICICI Pru Infotech Fund
This mutual fund too invests in Information Technology and ITES related stocks. Annualized returns in the last 5 years are as below:
- 1 Year – 30%
- 3 Years – 12%
- 5 Years – 13%
6) UTI Transport and Logistics Mutual fund
This is one mutual fund which is under looked by investors. This mutual fund invests in transport, travel, and logistics related stocks. Travel and Tourism sector has been growing. This sector is expected to slow down during recession and when companies plan for cost optimization measures to improve their margins. Such instance happened in 2007-2008 period. Hence investors should be considering this risk before investing in such mutual funds.
- 1 Year – 11%
- 3 Years – 4%
- 5 Years – 19%
We are not covering banking and infrastructure mutual funds which are worst performing sectors for over 5 years. Investors have lost their money and continue to lose their money in such sectors every year.
Conclusion: The above mutual funds are all sector based mutual funds which are high risk. Thought I agree that some sectors would continue to grow like Pharma and FMCG, other sectors can show downtrend under difficult economic conditions. Hence, investors who look for high risk, high return investments should invest in this sector based mutual funds.
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Best Mutual funds which doubled investment in short term