Top 7 Best Performing Mutual Funds in Technology and FMCG Sector in 2018

Top Performing Technology and FMCG Mutual Funds in 2018Top 7 Best Performing Mutual Funds in Technology and FMCG Sector in 2018


Currently there is rally in Technology and FMCG Stocks. Due to this rally, some of the technology mutual funds and FMCG funds are top performers compared to other equity mutual funds. We have recommended Best sector funds earlier where we included Technology and FMCG funds and they are zooming now in this rally. Which are the top performing Technology mutual funds in 2018? Which are the best performing Mutual Funds in FMCG Sector? Should you invest in these Best Performing Mutual Funds in India in Technology and FMCG Sector now in 2018?

Also Read: Best Largecap Mutual Funds to invest in 2018

How we filtered Best Performing Mutual Funds in Technology and FMCG Sector in 2018?


We have filtered these top performing funds based on below key parameters.

1) Mutual Fund schemes considered from technology and FMCG Sector.

2) Funds that have performed well in the last 1 year only have been picked up here. Since the rally is there only in the last few months, we have picked up last 1 year performance as basis.

3) Funds are filtered irrespective of the size of assets under management (AUM). This means, even < 100 Crore AUM funds are filtered.

4) Some of these funds could be repetitive from our earlier recommendations; hence if you are investing in them, you can continue to invest.

Who can invest in Technology and FMCG Funds?


These are sector funds which are high risk. If you have high risk appetite, aiming to get superior returns and willing to invest lump sum or through SIP you can invest in these funds. If you are moderate or low risk taker, you SHOULD stay away from these mutual funds.

7 Best Performing Mutual Funds in Technology and FMCG Sector in 2018


Top#1 – Tata Digital India Fund


Overview: The mutual fund scheme seeks long term capital appreciation by investing at least 80% of its assets in equity and equity related instruments of the companies in Information Technology Sector in India.

Performance:  This fund was launched in last 2 years 4 months only. This fund gave 55% returns in last 1 year. If you would have invested Rs 1 Lakh 1 year back, your investment would have grown to Rs 1.55 Lakhs.

If you would have invested Rs 1,000 per month through SIP for 2 years 4 months, the total investment would have been Rs 28,000 and your investment would have now grown to Rs 40,000.

Our View: This fund is relatively new and one cannot make out how this would perform in medium to long term. While this performed well and gave 55% in last 1 year, one cannot guarantee such short term performance. Investors should wait and watch before investing in such mutual funds schemes.

Top#2 – Aditya Birla New Millennium Fund


Overview: This mutual fund aims capital appreciation with focus on technology and technology dependent companies. The scheme will follow a bottom-up approach to stock picking, adopting a blend of value and growth style of investing.

Performance:  This fund gave 44% returns in the last 1 year, 15% annualized returns in last 3 years and 23% annualized returns in the last 5 years.

If you have invested Rs 1 Lakh, 1 year back, your investment would have grown to Rs 1.4 Lakhs. If you have invested Rs 1 Lakh, 3 years back, your investment would have grown to Rs 1.5 Lakhs. If you have invested Rs 1 Lakh, 5 years back, your investment would have grown to Rs 2.8 Lakhs.

If you would have invested Rs 5,000 per month through SIP for 5 years, your investment amount would have been Rs 60,000 and it would have now grown to Rs 95,000.

Our View: This fund has been giving consistent returns in the last 3-5 years. This fund was recommended by us as part of Sector Mutual Funds earlier too. This fund has been investing in quality technology stocks. Due to rally in technology stocks, these funds are also performing well. This is one of the top performing mutual funds in technology sector for 2018. It may still continue to zoom higher with this rally.

Top#3 – ICICI Prudential Technology Fund


Overview: The MF scheme aims for long term capital appreciation by investing in equity and equity related securities of technology and technology dependent companies.

Performance: This fund gave 40% returns in the last 1 year, 13% annualized returns in last 3 years and 24% annualized returns in the last 5 years.

If you have invested Rs 1 Lakh, 1 year back, your investment would have grown to Rs 1.4 Lakhs. If you have invested Rs 1 Lakh, 3 years back, your investment would have grown to Rs 1.44 Lakhs. If you have invested Rs 1 Lakh, 5 years back, your investment would have grown to Rs 2.9 Lakhs.

If you would have invested Rs 5,000 per month through SIP for 5 years, your investment amount would have been Rs 60,000 and it would have grown to Rs 92,000 now.

Our View: I have recommended this fund as part of Best Sector Mutual Funds to invest in 2018. This fund is consistent performer in the last 3-5 years which invests in high growth technology stocks. This fund has performed well in this technology stocks rally too. This is one of the best performing mutual funds to invest in 2018.

Top#4 – SBI IT Fund


Overview: The mutual fund scheme seeks to provide maximum growth opportunities through investments in IT stocks.

Performance: This fund gave 37% returns in the last 1 year, 10% annualized returns in last 3 years and 21% annualized returns in the last 5 years.

If you have invested Rs 1 Lakh, 1 year back, your investment would have grown to Rs 1.3 Lakhs. If you have invested Rs 1 Lakh, 3 years back, your investment would have grown to Rs 1.37 Lakhs. If you have invested Rs 1 Lakh, 5 years back, your investment would have grown to Rs 2.6 Lakhs.

If you would have invested Rs 5,000 per month through SIP for 5 years, your investment amount would have been Rs 60,000 and it would have grown to Rs 86,000 now.

Our View: If you observe this fund, this fund gave most of the returns in the last 1 year compared to last 3 years. Means, this fund has just rallied in the last 1 year hence you are seeing good returns. Otherwise, this fund has not been performing well till last 1 year back. One should stay away from such funds which perform only during market rallies.

Top#5 – Franklin India Technology Fund


Overview: This MF aims for capital appreciation through investments in high quality, fast growing companies in the information technology sector. This fund will also follow a bottom-up approach to stock pricing.

Performance: This fund gave 32% returns in the last 1 year, 11% annualized returns in last 3 years and 14% annualized returns in the last 5 years.

If you have invested Rs 1 Lakh, 1 year back, your investment would have grown to Rs 1.3 Lakhs. If you have invested Rs 1 Lakh, 3 years back, your investment would have grown to Rs 1.36 Lakhs. If you have invested Rs 1 Lakh, 5 years back, your investment would have grown to Rs 1.9 Lakhs.

If you would have invested Rs 5,000 per month through SIP for 5 years, your investment amount would have been Rs 60,000 and it would have grown to Rs 85,000 now.

Our View: If you observe this fund, even this fund gave most of the returns in the last 1 year compared to last 3 years. Means, this fund has just rallied in the last 1 year hence you are seeing good returns. Otherwise, this fund has not been performing well till last 1 year back. One should stay away from such funds which perform only during rallies.

Top#6 – SBI FMCG Fund


Overview: The scheme seeks maximum growth opportunities through investments in FMCG stocks.

Performance: This fund gave 30% returns in the last 1 year, 14% annualized returns in last 3 years and 16% annualized returns in the last 5 years.

If you have invested Rs 1 Lakh, 1 year back, your investment would have grown to Rs 1.3 Lakhs. If you have invested Rs 1 Lakh, 3 years back, your investment would have grown to Rs 1.5 Lakhs. If you have invested Rs 1 Lakh, 5 years back, your investment would have grown to Rs 2.1 Lakhs.

If you would have invested Rs 5,000 per month through SIP for 5 years, your investment amount would have been Rs 60,000 and it would have grown to Rs 1 Lakh now.

Our View: This fund outperformed compared to FMCG sector performance in the last 3-5 years. FMCG is always ever green sector. We have recommended this in our Sector Mutual Funds recommendations for 2018. This is one of the good performing Mutual funds to invest in India now.

Top#7 – ICICI Pru FMCG Fund


Overview: The scheme seeks maximum growth opportunities through investments in FMCG stocks.

Performance: This fund gave 19% returns in the last 1 year, 14% annualized returns in last 3 years and 16% annualized returns in the last 5 years.

If you have invested Rs 1 Lakh, 1 year back, your investment would have grown to Rs 1.2 Lakhs. If you have invested Rs 1 Lakh, 3 years back, your investment would have grown to Rs 1.5 Lakhs. If you have invested Rs 1 Lakh, 5 years back, your investment would have grown to Rs 2.1 Lakhs.

If you would have invested Rs 5,000 per month through SIP for 5 years, your investment amount would have been Rs 60,000 and it would have now grown to Rs 90,000.

Our View: The performance is in line with FMCG Sector performance in the last 3-5 years, however its 1 year performance is not upto the mark. If you put aside short term performance, this is one of the best performing mutual funds in 2018.

Also Read: Best Mutual Funds to invest in Rural Segment now

Here is the summary of Top Performing Mutual Funds in Technology and FMCG Sector in 2018


List of Top Performing Technology and FMCG Mutual Funds now

Conclusion: Technology Stocks and FMCG stocks are rallying now. As indicated in our earlier articles, sector mutual funds would perform extremely well only during particular market cycles. You can continue to invest in such mutual funds for 1-2 years before they take correction. These are not for long term investment.

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Suresh

Best Performing Mutual Funds in Technology and FMCG Sector in 2018

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