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Analysis of performance of sectoral funds shows that infrastructure funds have been doing good for the last 5 years. The category has outperformed the Nifty 50 index by a wide margin.
The data shows that all 15 infrastructure funds have outperformed Nifty 50 index. Next best performing sectors are healthcare, technology, PSU bank funds and power and infrastructure.
On the other hand, banking & financial funds, MNC funds and FMCG funds did not perform well over the last 5 years.
Ashutosh Bhargava, Fund Manager and Head Equity Research, Nippon India MF attributes stellar performance of infrastructure funds to recovery in capital expenditure. “After years of underperformance, infrastructure companies have finally revived their performance because of healthy order books and earnings. On the other hand, banking and financial sectors underperformed due to concerns with asset quality and margins. But this trend is likely to reverse. I am bullish about banking as a sector. It is likely to do well in the coming years.”
Another sector that Bhargava is bullish is technology. He said that innovation as theme is very relevant and interesting. The landscape for businesses in India is rapidly changing and many companies have been spending in in R&D and tech aggressively, he added.
Chirag Mehta, CIO, Quantum MF believes that increased government spending has led to good performance of infrastructure sectors whereas higher interest rates spoil the party for banking and financial services sector. He; however, believes that banks look promising considering the greater chances of interest rates going down. He sees opportunities banking and finance, housing and auto sectors currently.
Hardick Bora, Co - Head of Equity, Union MF feels that capital is now flowing into capital goods sectors. “I think infrastructure will continue to do well. However, sectors like metals, power, capital goods, transportation and manufacturing will also benefit from the current capex cycle.”
A Senior Equity Fund Manager from ITI MF said that Indian government has put a lot of emphasis on infrastructure now, seeing the trends globally.
He further said, “If we look at the banking and financial sector, it has matured and that is why the growth was limited in this sector. Pharma and healthcare have done well as the living standard of people have risen and they now have the access to better healthcare and medicine facilities. Coming to digital sector, government initiatives have helped the sector to grow. Sectors that look promising now are infrastructure but only in pockets, power automobile, textiles and cement.”
Let’s look at the 5-year returns of various sectoral/thematic funds-
|
Infrastructure |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns% |
Outperformance% |
|
Quant Infrastructure Fund |
34.71 |
16 |
18.71 |
|
Invesco India Infrastructure Fund |
26.62 |
16 |
10.62 |
|
ICICI Prudential Infrastructure Fund |
26.34 |
16 |
10.34 |
|
Tata Infrastructure Fund |
25.08 |
16 |
9.08 |
|
SBI Infrastructure Fund |
24.89 |
16 |
8.89 |
|
DSP T.I.G.E.R. Fund |
24.16 |
16 |
8.16 |
|
Bandhan Infrastructure Fund |
23.82 |
16 |
7.82 |
|
Canara Robeco Infrastructure Fund |
23.36 |
16 |
7.36 |
|
LIC MF Infrastructure Fund |
21.95 |
16 |
5.95 |
|
Aditya Birla Sun Life Infrastructure Fund |
21.32 |
16 |
5.32 |
|
HSBC Infrastructure Fund |
20.94 |
16 |
4.94 |
|
Sundaram Infrastructure Advantage Fund |
20.37 |
16 |
4.37 |
|
Taurus Infrastructure Fund |
19.95 |
16 |
3.95 |
|
HDFC Infrastructure Fund |
19.45 |
16 |
3.45 |
|
UTI Infrastructure Fund |
18.92 |
16 |
2.92 |
|
PSU |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns% |
Outperformance % |
|
Invesco India PSU Equity Fund |
26.43 |
16 |
10.43 |
|
SBI PSU Fund |
22.64 |
16 |
6.64 |
|
Power & Infrastructure |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns% |
Outperformance % |
|
Nippon India Power & Infra Fund |
25.85 |
16 |
9.85 |
|
Manufacturing infrastructure |
||||
|
Scheme Name |
Sector |
Return 5 Year (%) Regular |
Nifty returns% |
Outperformance % |
|
Bank of India Manufacturing & Infrastructure Fund |
Manufacturing & infrastructure |
25.34 |
16 |
9.34 |
|
Manufacturing |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
ICICI Prudential Manufacturing Fund |
24.02 |
16 |
8.02 |
|
Infrastructure & Economic Reforms |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Kotak Infrastructure and Economic Reform Fund |
23.84 |
16 |
7.84 |
|
Pharma and healthcare |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund |
24.73 |
16 |
8.73 |
|
Tata India Pharma & Healthcare Fund |
22.70 |
16 |
6.70 |
|
Healthcare |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Mirae Asset Healthcare Fund |
24.16 |
16 |
8.16 |
|
SBI Healthcare Opportunities Fund |
23.44 |
16 |
7.44 |
|
UTI Healthcare Fund |
21.25 |
16 |
5.25 |
|
LIC MF Healthcare Fund |
18.95 |
16 |
2.95 |
|
Pharma |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Nippon India Pharma Fund |
23.30 |
16 |
7.30 |
|
Digital |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Aditya Birla Sun Life Digital India Fund |
23.53 |
16 |
7.53 |
|
Tata Digital India Fund |
22.90 |
16 |
6.90 |
|
Built India |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Franklin Build India Fund |
23.56 |
16 |
7.56 |
|
Technology |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
ICICI Prudential Technology Fund |
23.41 |
16 |
7.41 |
|
Franklin India Technology Fund |
22.64 |
16 |
6.64 |
|
SBI Technology Opportunities Fund |
21.95 |
16 |
5.95 |
|
Energy |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Tata Resources & Energy Fund |
22.51 |
16 |
6.51 |
|
Opportunities |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
ICICI Prudential India Opportunities Fund |
22.12 |
16 |
6.12 |
|
Franklin India Opportunities Fund |
21.61 |
16 |
5.61 |
|
Recently Listed IPO |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Edelweiss Recently Listed IPO Fund |
21.32 |
16 |
5.32 |
|
Commodities |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
SBI Magnum COMMA Fund |
21.05 |
16 |
5.05 |
|
Services |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Sundaram Services Fund |
20.69 |
16 |
4.69 |
|
Transportation & Logistics |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
UTI Transportation and Logistics Fund |
19.38 |
16 |
3.38 |
|
Shariah |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Taurus Ethical Fund |
18.16 |
16 |
2.16 |
|
Tata Ethical Fund |
17.89 |
16 |
1.89 |
|
Business cycle |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
HSBC Business Cycles Fund |
18.06 |
16 |
2.06 |
|
Housing |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
HDFC Housing Opportunities Fund |
17.08 |
16 |
1.08 |
|
Consumer |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Mirae Asset Great Consumer Fund |
17.95 |
16 |
1.95 |
|
Tata India Consumer Fund |
16.87 |
16 |
0.87 |
|
UTI India Consumer Fund |
14.54 |
16 |
-1.46 |
|
Manufacturing & Equity |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Aditya Birla Sun Life Manufacturing Equity Fund |
16.32 |
16 |
0.32 |
|
Consumer Trend |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Canara Robeco Consumer Trends Fund |
19.17 |
16 |
3.17 |
|
Exports and Services |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
ICICI Prudential Exports and Services Fund |
18.92 |
16 |
2.92 |
|
Gen Next |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Aditya Birla Sun Life India GenNext Fund |
17.46 |
16 |
1.46 |
|
Consumption |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Nippon India Consumption Fund |
21.65 |
16 |
5.65 |
|
Baroda BNP Paribas India Consumption Fund |
19.24 |
16 |
3.24 |
|
SBI Consumption Opportunities Fund |
17.90 |
16 |
1.90 |
|
Mahindra Manulife Consumption Fund |
14.41 |
16 |
-1.59 |
|
Sundaram Consumption Fund |
14.36 |
16 |
-1.64 |
|
India & opportunities |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Nippon India US Equity Opportunities Fund |
15.73 |
16 |
-0.27 |
|
Financial Services |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Sundaram Financial Services Opportunities Fund |
16.85 |
16 |
0.85 |
|
Invesco India Financial Services Fund |
14.15 |
16 |
-1.85 |
|
ESG |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
SBI ESG Exclusionary Strategy Fund |
14.73 |
16 |
-1.27 |
|
FMCG |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
ICICI Prudential FMCG Fund |
13.50 |
16 |
-2.50 |
|
MNC |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
UTI MNC Fund |
12.75 |
16 |
-3.25 |
|
Aditya Birla Sun Life MNC Fund |
8.75 |
16 |
-7.25 |
|
Banking & Financial Sector |
|||
|
Scheme Name |
Return 5 Year (%) Regular |
Nifty returns % |
Outperformance % |
|
Tata Banking and Financial Services Fund |
13.13 |
16 |
-2.87 |
|
SBI Banking & Financial Services Fund |
13.06 |
16 |
-2.94 |
|
Taurus Banking & Financial Services Fund |
12.61 |
16 |
-3.39 |
|
Nippon India Banking & Financial Services Fund |
12.42 |
16 |
-3.58 |
|
Aditya Birla Sun Life Banking & Financial Services Fund |
11.61 |
16 |
-4.39 |
|
Baroda BNP Paribas Banking and Financial Services Fund |
10.92 |
16 |
-5.08 |
|
ICICI Prudential Banking and Financial Services Fund |
10.31 |
16 |
-5.69 |
|
LIC MF Banking & Financial Services Fund |
9.38 |
16 |
-6.62 |
|
UTI Banking and Financial Services Fund |
8.57 |
16 |
-7.43 |
Note- To understand the performance of funds we have compared it to Nifty 50 benchmark.
