Best Sector Mutual Funds for 2017 that can give upto 500% returns

Best Sector Mutual Funds for 2017 that can give upto 500percent returnsBest Sector Mutual Funds for 2017 that can give upto 500% returns


Many of us think that mutual fund can give just 12% annualized returns and stocks would give very high returns. While this is true to some extent, there are set of mutual funds that can double or trouble your money. These are sector based mutual fund schemes in India. Some of the Best Sector Mutual funds for 2017 can give superior returns. Which are best sector mutual funds to invest which can double or triple your money? Would you be happy if you can double your investment in mutual funds in 5 years. Would you get excited if you can double your investment in just 3 years. This article would provide some of the Best Sector Mutual Funds for 2017 which can fetch you upto 500% returns in next 10 years.

Also Read: Best Tax Saving Mutual funds to save tax u/s 80C upto Rs 1.5 Lakhs

Best Sector Mutual Funds for 2017 that can give upto 500% returns


These top 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 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 to medium term returns too.

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.

Top#1: UTI Transportation and Logistics Fund


best sector mutual funds for 2017-auto sector fundsThis is my all time favorite sector 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 32% annualized returns in last 3 years, 31% annualized returns in last 5 years and 17% annualized returns in last 10 years. This fund gave consistent returns in medium to 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 3.85 Lakhs i.e 3.85 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 1.07 Lakhs i.e. 1.07 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 118,000.

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 some risk, invest some money into this fund.

Our View: This fund invests in auto sector. Currently due to demonetization, auto sector is down. However the affect should go away in next 2-3 quarters. Since auto sector stocks are down now, it is good to start investing in such funds from now which is available at 8% down compared to 3 months back.

Top#2: ICICI Pru Banking and Financial Services Fund


best sector mutual funds for 2017-bankingThe scheme seeks to maximize long term capital gains by investing in equity and equity related securities of banking, financial and non-banking financial companies that form a part of Banking and Financial Services Industry. A large share of the assets of the scheme will be invested in the stocks comprising the benchmark, BSE Bankex Index.

Reasons to invest: This fund gave 24% annualized returns in last 3 years, 25% annualized returns in last 5 years. This fund gave consistent returns in short to medium term.

If you would have invested Rs 1 Lakh, 5 years back, the investment amount along with returns would have been Rs 3.05 Lakhs i.e. 3.05 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 1.22 Lakhs i.e. 1.22 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 99,000.

If you observe, you would have made money even in the short term or even in the medium term. It invests in predemoninantly in banking sector and some extent in finance sector. If you can take some risk, invest some money into this fund.

Our View: This fund invests in banking sector. Currently due to demonetization, banking sector is expected to see mixed reaction. While deposits has increased, interest rates are expected to be under pressure (both for deposit rates as well as lending rates for loans given by banks). In short term, it may fluctuate, however in medium to long term, this fund could deliver good returns.

You may also like: Which is the best mutual fund platform to invest among Scripbox Vs Fundsindia Vs ZIPSIP?

Top#3: SBI Pharma Fund


best sector mutual funds for 2017-pharma mutual fundsI 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 20% annualized returns in last 3 years, 24% 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 2.93 Lakhs i.e. 2.93 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 1.72 Lakhs i.e. 1.72 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 95,000.

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.

Our View: In the last 1 month, due to US probe into India Pharma companies, Pharma stocks are taking beating. This could be short term in nature. Currently pharma stocks are available at attractive valuations. This fund is available more than 8% down compared to 3 months back. Hence good time to start investing in such funds from now on if you have not invested earlier.

Top#4: Reliance Pharma Fund


best sector mutual funds for 2017-pharma fundsThis 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 17% annualized returns in last 3 years, 21% 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 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 2.4 Lakhs i.e. 2.4 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 90,000.

If you observe, you would have made money even in the short term or even in the long term even in this fund too. 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.

Our View: Like I indicated above, In the last 1 month, due to US probe into Indian Pharma companies, Pharma stocks are taking beating. Even this fund is available more than 6% to 8% down compared to 3 months back. Hence good time to start investing in such funds from now on if you have not invested earlier.

Top#5: Reliance Banking Fund


best sector mutual funds for 2017-banking and financial servicesThe scheme aims to generate continuous returns by actively investing in equity, equity related or fixed income securities of banks. The proportion of investment between equity and debt will be decided based on the view of the fund manager on anticipated movement in both debt as well as equity markets.

Reasons to invest: This fund gave 21% annualized returns in last 3 years, 19% annualized returns in last 5 years and 17% anualised 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 4.8 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 2.4 Lakhs i.e. 2.4 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 1.77 Lakhs i.e. 1.77 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 88,000.

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 some risk, invest some money into this fund.

Our View: Even this fund invests in banking sector. Currently due to demonetization, banking sector is expected to see mixed reaction. In short term, it may fluctuate, however in medium to long term, even this banking fund could deliver good returns.

Also Read: Best International / Global Mutual funds to invest now

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 best sector based funds for 2017. If you can get good returns in medium term, you can always sell them and book profits.

What about FMCG and IT Sectors?


Last year, I recommended FMCG + IT Sector funds (2 funds). While FMCG is expected to grow in medium to long term, due to demonetization, in short term we may see margins pressure and under performance. If you have already invested, hold your investment. IT sector on other hand, we are have seen change in US Govt and H1B visa restrictions coming in. This would pressure on business for Indian IT Stocks. Hence even these stocks are expected to take beating in coming months. If you have invested in IT Funds, take a pause for fresh investments. You can hold your earlier investments.

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Suresh

Best Sector Mutual Funds for 2017 that can give upto 500% returns

20 comments

  • vikrant

    Please suggest TOP 5 sector & funds to invest in over next 3 years horizon

    My keenly looking at Energy, BFSI, Infrastructure, S&M Cap / Flexi

    With my top picks (Please comment)

    DSPBR Natural Resources and New Energy Direct-G 

    Sahara Power & Natural Resources Fund (D -G) 

    Reliance Diversified Power Sector Fund (D -G) 

    ICICI Prudential Banking and Financial Services Fund (D -G) 

    Tata Banking & Financial Services Fund (D-G) 

    Birla Sun Life Banking & Financial Services (D -G) 

    Reliance Banking Fund – (D-G) 

    IDFC Infrastructure Fund – (D -G) 

    L&T Infrastructure Fund – (D -G) 

    L&T Emerging Business Fund (D -G) 

    Birla Sun Life Small And Midcap Fund (D -G)

  • falgun

    dear sir,

    I have invested in Reliance Tax saver 4000Rs/month through SIP instead of PPF.Is is good for 15 year time period?

  • R. Vikram

    Dear Mr. Suresh,

    I have been reading your insightful articles regularly and have developed a good idea of the potential of Mutual funds.

    Assuming that one invests when the NIFTY goes down to around 9500 in the near term,

    Kindly recommend your top 5 – 6 growth funds which could double in a period of three (3) years from that point

    Thanking you.

    With Kind Regards,

    Vikram

  • Santosh

    I have Invested around 100000 in Reliance Pharma Fund through SIP during the period from October 14 to November 15. Since I didnot see any growth in the period I stopped doing SIP in the fund after November 15. I have not redeemed the fund as yet. Even as on date the return is in negative. It would be grateful if you could give opinion on

    1. whether I should remain invested and restart the SIP 

    2. Should I redeem it and start a new SIP in other fund

    3. Should I use STP to transfer the amount in Reliance Small Cap Fund.

    Thanks

     

  • Bishwajeet Sen Sharma

    What about the future of “Natural Resources and New/ Renewable Energy Fund” for next 5 years?
    E.g.: DSP BlackRock Natural Resources and New Energy Fund

    Is it safe to invest as there is a huge push from Govt of India to do more with Solar/ Wind and other renewable energy

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