The industrial environment in the country has improved. Recent figures are confirming this. According to official data, the combined index of eight core industries stood at 157.8 for FY 2023-24, while it was 146.7 for FY 23 (April-March). If we take the month of April 2024, the same combined index was 160.5. On the other hand, GST collection is also improving and in June 2024, its figure was a record Rs 1.74 lakh crore. These figures show that now investors in India are getting great opportunities to invest in sectoral mutual funds.
New records are being made in the market every day
Stock market figures also tell a similar encouraging story. Major indices like BSE Sensex and NSE Nifty are making new records almost every day. Domestic institutional investors are on a buying spree and their gap with FIIs is now barely 9 percent. It is expected that DIIs will soon overtake FIIs.
Investors got 83 percent return
In such an exciting time, there is an opportunity to invest in theme-based sectoral funds. Investment in power, infrastructure, banking, financial services, innovation and consumption themes can see a great increase in returns. Such funds have given great returns in the past as well. For example, if we look at Nippon India Power and Infra, it has given a return of 82.73 percent in the last one year. The fund house’s pharma and consumption funds have also given a return of 40.92 percent and 39.34 percent respectively. Nippon India Innovation Fund has given a return of 47.92 per cent since its launch 10 months ago, while Nippon India Banking Fund has given a return of 25.95 per cent.
Average one-year return is around 45 per cent
If you look at category-wise returns among major sector funds, infrastructure has given a return of 46.05 per cent, consumption fund has given a return of 47 per cent, pharma fund has given a return of 47.06 per cent and technology-based fund has given a return of over 30 per cent. Overall, sectoral funds have given a return of 44.40 per cent on investment in the last one year. In these baskets, sectoral funds of ICICI MF, Axis MF and Aditya Birla MF have also given double digit returns on investment i.e. more than 10-10 percent.
What do experts say about sectoral funds?
Vikas Bhattu of Wealthvault Research and Analytics Pvt Ltd says – In the last one year, investors have got good returns in all major sectoral funds. Given the strong indicators and government policy initiatives, it is wise to diversify your portfolio and invest in infrastructure, financial services and innovation funds. These can be part of your non-core portfolio.
Disclaimer: The information provided here is for information purposes only. It is important to mention here that investing in the market is subject to market risks. As an investor, always consult an expert before investing. ABPLive.com never recommends anyone to invest any money here.
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