Top 10 Sector Mutual Funds of 2017 that are rocking in this bull run

Top 10 Sector Mutual Funds of 2017 that are rocking in this bull runTop 10 Sector Mutual Funds of 2017 that are rocking in this bull run


There is no limit for the bull run now. Nifty has touched 10K this week. Several mutual funds which are not seen in the last few years are indicating amazing returns. In sector mutual funds, there are several funds that are giving superior returns now. However one should not judge with the short term performance and look for consistent returns. Which are the top 10 sector mutual funds in 2017 that are rocking in this bull run? Which are the best sector funds of 2017 as per returns in last 1 year and whats our view about these funds?

Also Read: How to invest in Direct Plans of Mutual funds which gives 2% higher returns compared to regular funds?

How we filtered Top 10 Sector Mutual Funds of 2017 that are rocking in this bull run?


These top 10 sector mutual funds of 2017 in India have been analyzed and shortlisted based on below key parameters.

Picked based on highest returns received in the last 1 year. Since this article is based on the funds that are rocking in this bull run, recent returns of last 1 years is key for the analysis.

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.

Since these are sector based funds, Crisil or Value Research Online would give less importance in ranking and they would avoid giving ranking for some of these sector funds.

AUMs (Assets under management) > 100 Crores. This proves investor confidence among these top mutual funds.

Top 10 Sector Mutual Funds of 2017 that are rocking in this bull run


Top#1 – IDFC Infrastructure Plan A


Top 10 Sector Mutual Funds of 2017-IDFC Infrastructure Fund

Overview: The scheme aims to generate long-term capital growth through an active diversified portfolio of predominantly equity and equity related instruments of companies in Indian infrastructure and infrastructural related activities.

Performance: This funds stands 1st in Infra funds that gave highest returns in last 1 year. It gave 42% returns in last 1 year and 15% annualized returns in last 5 years.

Our View:  This fund is rated as 3 Star by value research online and Rank-2 by Crisil. Though this fund gave highest returns in last 1 year, this fund is underperformer in the last 3 to 5 years. Such funds comes into limelight during bull runs. How many bull runs would be there in 3-5 years time frame? One can invest in other good Infra funds and should avoid such funds.

Top#2 – L&T Infrastructure Mutual Fund


Top 10 Sector Mutual Funds of 2017-L&T Infrastructure Fund

Overview: The scheme objective is to generate capital appreciation by investing primarily in companies that are engaged in the area of infrastructure. The fund would select fundamentally sound companies, having potential to deliver superior earning growth in long run.

Performance: This funds stands 2nd in Infra funds that gave highest returns in last 1 year. It gave 37% returns in last 1 year and 22% annualized returns in last 5 years.

Our View:  This fund is rated as 4 Star by value research online and Rank-1 by Crisil. This is the good fund that performed well even in the last 3-5 years tenure. It is consistent performer. This fund is expected to perform well for the next 2-3 years. One can invest for a short term of 3 years but should continue to monitor the performance as these can downturn any time.

Top#3 – Birla SL Infrastructure Mutual Fund


Best Sector Mutual Funds of 2017-Birla SL Infrastructure Fund

Overview: The scheme aims to provide capital appreciation by investing predominantly in a diversified portfolio of equity and equity related securities of companies that are participating in the growth and development of infrastructure in India. It also invest a small portion of its corpus in money market instruments & in ADG/GDR.

Performance: This funds stands 3rd in Infra funds that gave highest returns in last 1 year. It gave 28% returns in last 1 year and 21% annualized returns in last 5 years.

Our View:  This fund is rated as 3 Star by value research online and Rank-3 by Crisil. This is the good fund that performed well even in the last 3-5 years tenure. One can invest for a short term of 2-3 years but should continue to monitor the performance as these can downturn any time.

Also Read: Best Infrastructure Mutual Funds that can give amazing returns

Top#4 – ICICI Pru Banking and Financial Services Fund


Best Sector Mutual Funds of 2017-ICICI Pru Banking and financial services fund

Overview: The mutual fund scheme aims to maximize long term capital gains by investing in equity related securities of banking, financial and non-banking financial companies which are forming part of Banking and Financial Services Industry. Huge chunk assets of the mutual fund scheme will be invested in the BSE Bankex Index stocks.

Performance: This funds stands 1st in banking fund that gave highest returns in last 1 year. It gave 39% returns in last 1 year and 28% annualized returns in last 5 years.

Our View:  This fund is rated as 5 Star by value research online. This is the good fund that performed well even in the last 3-5 years tenure. Banking and financial industry is every green, however we could see up and downturn cycles some times. With Govt focus on Infrastructure, banking sector is going to benefit in future too. One can invest for a short term of 2-3 years but should continue to monitor the performance as these can downturn any time.

Top#5 – Reliance Banking Fund


Best Sector Mutual Funds of 2017-Reliance Banking Fund

Overview: The reliance Banking fund scheme aims to generate consistent returns by investing in equity and related and fixed income securities. The proportion of investment between equity and debt will be decided based on the view of the fund manager on anticipated movement in both debts as well as equity markets.

Performance: This funds stands 2nd Banking fund that gave highest returns in last 1 year. It gave 37% returns in last 1 year and 22% annualized returns in last 5 years.

Our View:  This fund is rated as 3 Star by value research online. This is the good fund that performed well even in the last 3-5 years tenure. Even this fund too going to benefit from Infra development in future. One can invest for a short term of 2-3 years but should continue to monitor the performance as these can downturn any time.

Top#6 – SBI FMCG Mutual fund Scheme


Top 10 Sector Mutual Funds of 2017-SBI FMCG Fund

Overview: SBI FMGC Mutual fund invests in FMCG Companies in India.

Performance: This funds stands 1st in FMCG Funds segment that gave highest returns in last 1 year. It gave 16% returns in last 1 year and 17% annualized returns in last 5 years.

Our View:  These FMCG funds are not rated by value research online. This is the good fund that performed well even in the last 3-5 years tenure. FMCG industry is also ever green, however margins are always under pressure. One can invest for a short term of 2-3 years but should continue to monitor the performance as these can downturn any time.

Also Read: 

Top#7 – ICICI Pru FMCG Mutual fund Scheme


Best Sector Mutual Funds of 2017-ICICI Pru FMCG Fund

Overview: ICICI FMGC Mutual fund invests in FMCG Companies in India.

Performance: This funds stands 2nd in FMCG Funds segment that gave highest returns in last 1 year. It gave 16% returns in last 1 year and 18% annualized returns in last 5 years.

Our View:  These FMCG funds are not rated by value research online. This is the good fund that performed well even in the last 3-5 years tenure. As indicted above, FMCG industry is ever green. Invest for short term of 2-3 years and keep monitoring such funds.

Also Read: Best International / Global Funds to invest in India

Top#8 – Reliance Diversified Power Sector Fund


Top 10 Sector Mutual Funds of 2017-Reliance Div Power fund

Overview: The scheme aims to generate consistent returns by investing in equity / equity related or fixed income securities of power and other companies associated with the power sector.

Performance: This funds stands 1st in Other Sector Funds segment that gave highest returns in last 1 year. It gave 33% returns in last 1 year and 15% annualized returns in last 5 years.

Our View:  This funds are not rated by value research online and Crisil. This fund was underperformer in the last few years and suddently came to limelight in this bull run. If you observe this fund gave 15% returns in last 5 years while several other sector funds gave over 20% returns. Focus on power sector by Govt of India and made such funds to come in limelight. In short term of next 2-3 years, it is very unlikely that they may give good returns compared to its peers. One can take some risk and invest in such funds for short term to medium term of 2-4 years.

Top#9 – Sundaram Rural India Fund


Best Sector Mutual Funds of 2017-Sundaram Rural India Fund

Overview: The scheme aims to generate consistent long-term returns by investing predominantly in equity/ equity related instruments of companies that focus on Rural India.

Performance: This funds stands 2nd in Other Sector Funds segment that gave highest returns in last 1 year. It gave 26% returns in last 1 year and 24% annualized returns in last 5 years.

Our View:  This funds are not rated by value research online and Crisil. This fund was average performer in the last few years and suddenly came to limelight in this bull run. This fund managed to do well in the last 2-3 years. One can take some risk and invest in such funds for short term to medium term of 2-4 years.

Top#10 – UTI Transportation and Logistics Fund


Best Sector Mutual Funds of 2017-UTI Trans and logistics fund

Overview: This 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.

Performance: This funds stands 3rd in Other Sector Funds segment that gave highest returns in last 1 year. It gave 21% returns in last 1 year and 32% annualized returns in last 5 years.

Our View:  This funds are not rated by value research online and Crisil. This fund was always performed well in 3-5 years tenure. While the performance in last 1 year is not that exciting, however it gave consistent returns of over 20% in the last 4-6 years.

Summary of all Top 10 Sector Funds of 2017 are listed below


Summary of Top 10 Best Sector Mutual Funds of 2017

Also Read: Top Motilal Oswal Mutual Funds – Buy Right Sit Right – Should you invest? 

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 very short term. In short term to medium term of 3-5 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 short term, you can always sell them and book profits.

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Suresh

Top 10 Sector Mutual Funds of 2017 that are rocking in this bull run

11 comments

  • Shibu

    Surseh sir
    I have retired from kerala government service
    .Only 16 years of service , so pension is less.In what should I invest my retirement fund of Rs 20 lacs.My wife is employed & has 7 more years of service.I have no other liability.Please advise me

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