59% return in one year; Bright Sectoral Funds; Can you consider mutual fund investment?

 

It has been a year of good returns for equity investors. Domestic indices Nifty and Sensex ended the year with gains of around 20 percent. Investors in equity mutual funds have also benefited from this.

Sectoral funds are one of the top performing mutual fund categories. Funds in the public sector, infrastructure and manufacturing sectors have performed eye-poppingly. Let's take a closer look at the specialty of sectoral funds and which funds have performed best this year.

What are Sectoral Funds?

 Sectoral funds are funds that invest only in businesses within the same industry or sector. For example, funds in the technology sector invest in companies like Infosys, Wipro, Tech Mahindra and TCS. Similarly, the fund in the pharma sector will invest in companies like Cipla, Biocon and GlaxoSmithKline Pharma.

Sectoral funds invest in companies across all market caps. These funds are less diversified as they invest in a single sector. Meanwhile, if the performance of the sector is good, investors will get higher returns.

Funds that have given better returns

 The public sector, infrastructure and manufacturing sectors have performed well over the past year. Their sectoral funds have seen better returns. For example, Aditya Birla Sun Life PSU Equity Fund has returned 59 percent in the last one year.

 Nippon India Power and Infra Fund has returned 57.44% in one year. Apart from these, mutual fund schemes including Franklin Build India Fund, Franklin India Opportunities Fund, HDFC Infrastructure Fund and Invesco have returned over 50 per cent in the last one year.

Aditya Birla Sun Life PSU Equity Fund- Return

 As of December 27, Aditya Birla Sun Life PSU Equity Fund has returned 59 percent, while an investment of Rs 1 lakh has grown to Rs 1,59,564. SIP investors got 96 percent return. A monthly SIP of Rs 10,000 grew to Rs 1,76,151. A profit of Rs 56,151 is made on an investment of Rs 1.20 lakh.

Aditya Birla Sun Life PSU Equity Fund

 Aditya Birla Sun Life PSU Equity Fund is a sectoral fund that invests in PSU stocks. 95.86 per cent of the fund is invested in equities with 38 stocks. 49.39 percent shares

The regular plan has an expense ratio of 2.10 percent. The net asset value as on December 29 is Rs 27.54. The direct plan has an expense ratio of 0.7 percent. 29.49 net asset value of Rs.

notice

 The above article is for study purpose. Before taking investment decisions in this regard, the advice of a financial expert can be sought. Investment in mutual fund is subject to risk of loss. Take investment decision at your own risk only. Granium Information Technologies and the author are not responsible for any profit or loss that may occur based on the decision taken after reading the article.