Best 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
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.
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
The 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.
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Top#3: SBI Pharma Fund
I 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
This 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
The 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
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Pls suggest Best mutual fund for 2018 2019, Still i can buy uti transport & logistic
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)
Hi Vikant, Yes these are the good sector funds. However don’t invest heavily in sector funds.
dear sir,
I have invested in Reliance Tax saver 4000Rs/month through SIP instead of PPF.Is is good for 15 year time period?
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
Hi Vikram, You can invest in these sector funds if you are looking to double your money in 3 years. However these are high risk high returns funds
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
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
Good fund, however we need to keep an eye n such funds as they can always turn in negative gear like it is happening in pharma sector
Sir ..i can invest 15000 pr month..i want to become crorepati in next 15 year .sir mujhe kon se mutual fund me invest krna chie ..ya mujhe 5000 rs sip se best 2 sector mutual fund ,5000 rs in balance fund and 5000 rs sip se ells tax shaving fund me invest krne chie …now my age is 25 year or monthly income is 40000 rs h
Good advice for new investors like me.
Hi,
I have seen your mentioned funds in moneyControl, most of the funds are not fall under CRISIL MF RANK. Shall I dare to buy these funds even its not under CRISIL MF RANK ?
Thanks
Satya Pratap
Sir, thanks for the informative article. Thankfully, I am invested in most of the funds you mentioned above. What is your opinion on sundaram rural India fund? This has been giving good returns for last couple of years but demonetization spoiled the party. However, demonetization effects are expected to be short term and based on governments focus on rural India, this theme is expected to work well over next 3-5 yeas. What's your call on this?
And would you recommend investing in any infrastructure theme fund such as Franklin build India or Kotak infrastructure fund given government's push for infra projects?
Thanks and regards
Amit
Sir can i apply in super fine knitters sme ipo for listing gain.
Suresh Sir, Great explanation as always.. Really like the way you explains it.
Each and everything looks so easy to understand.
One clarification I need is that at any point of time what is maximum of sector fund a investor can have ?
My portfolio has one IT fund(which I will pause) and one banking fund(above listed fund).
I wanted to say .. what is maximum number of funds investor can have.
Sir,is it advisable to invest lump sum amount now in this sector based fund for long term view.
I have a SIP,
ICICI Technology Fund Direct Plan G Rs.5000 pm
Tata Consumer fund SIP(VIP) Direct Plan RS.6000
Can I continue or stop to invest more.
My horizon for investment 3 Yrs & assumption of return 11% annum.
Can it achieve ??
Awaiting for your guidance.
Hi Suresh,
Can you please provide info about SystematicTransfer Plan(STP) Mutual fund investments?
sure Karthik, I would provide details in coming weeks.
With your suggestions 5 months back i started SIP in DSP Blackrock Mutual Fund, since then its in -3.75% appreciation, shall i wait for few more months or change. I started to invest for long term, min 5 – 10 years…Please suggest, as this is my first SIP..Thank you