Top Performing Sectoral Funds in 1 Year

The below table shows a list Of the Top Performing Sectoral Funds in 1 Year Based on AUM, NAV and minimum SIP.

Introduction to Top Performing Sectoral Funds in 1 Year

Tata Digital India Fund

Tata Digital India Fund is a sectoral technology mutual fund scheme from Tata Mutual Fund. This fund has existed for 8 years and 7 months, having been launched on December 4, 2015.

Tata Digital India Fund is categorized under Sectoral Fund – Technology with an AUM of ₹10,204.35 Crores, a 5-year CAGR of 29.44%, an exit load of 0.25% and an expense ratio of 0.36%. SEBI rates the risk as Very High. The asset allocation includes 1.18% in Cash & Equivalents and 98.82% in Equity.

ICICI Prudential Banking and Financial Services Fund

ICICI Prudential Banking and Financial Services Fund is a Sectoral-Banking mutual fund scheme from ICICI Prudential Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.

ICICI Prudential Banking and Financial Services Fund is categorized under Sectoral Fund – Banks & Financial Services with an AUM of ₹7,605.37 Crores, a 5-year CAGR of 16.33%, an exit load of 1% and an expense ratio of 1.04%. SEBI rates the risk as Very High. The asset allocation includes 1.28% in Treasury Bills, 4.04% in Cash & Equivalents and 94.68% in Equity.

Nippon India Power & Infra Fund

Nippon India Power & Infra Fund is a Sectoral-Infrastructure mutual fund scheme from Nippon India Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.

Nippon India Power & Infra Fund is categorized under Sectoral Fund – Energy & Power with an AUM of ₹7,537.49 Crores, a 5-year CAGR of 34.16%, an exit load of 1% and an expense ratio of 1.01%. SEBI rates the risk as Very High. The asset allocation includes 1.40% in Cash & Equivalents and 98.60% in Equity.

Nippon India Pharma Fund

Nippon India Pharma Fund is a Sectoral-Pharma mutual fund scheme from Nippon India Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.

Nippon India Pharma Fund is categorized under Sectoral Fund – Pharma & Health Care with an AUM of ₹7,404.21 Crores, a 5-year CAGR of 30.96%, an exit load of 1% and an expense ratio of 0.92%. SEBI rates the risk as Very High. The asset allocation includes 2.60% in Cash & Equivalents and 97.40% in Equity.

Nippon India Banking & Financial Services Fund

Nippon India Banking & Financial Services Fund is a Sectoral-Banking mutual fund scheme from Nippon India Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.

Nippon India Banking & Financial Services Fund is categorized under Sectoral Fund – Banks & Financial Services with an AUM of ₹5,932.60 Crores, a 5-year CAGR of 18.78%, an exit load of 1% and an expense ratio of 1.08%. SEBI rates the risk as Very High. The asset allocation includes 1.81% in Cash & Equivalents and 98.19% in Equity.

SBI Banking & Financial Services Fund

SBI Banking & Financial Services Fund is a Sectoral-Banking mutual fund scheme from SBI Mutual Fund. This fund has existed for 9 years and 6 months, having been launched on February 11, 2015.

SBI Banking & Financial Services Fund is categorized under Sectoral Fund – Banks & Financial Services with an AUM of ₹5,861.16 Crores, a 5-year CAGR of 18.59%, an exit load of 0.5% and an expense ratio of 0.74%. SEBI rates the risk as Very High. The asset allocation includes 6.79% in Cash & Equivalents and 93.21% in Equity.

Aditya Birla Sun Life India GenNext Fund

Aditya Birla Sun Life India GenNext Fund is a Thematic-Consumption mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.

Aditya Birla Sun Life India GenNext Fund is categorized under Sectoral Fund – Consumption with an AUM of ₹5,786.16 Crores, a 5-year CAGR of 24.26%, an exit load of 1% and an expense ratio of 0.75%. SEBI rates the risk as Very High. The asset allocation includes 1.71% in Cash & Equivalents and 98.29% in Equity.

ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund is a Sectoral-Infrastructure mutual fund scheme from ICICI Prudential Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.

ICICI Prudential Infrastructure Fund is categorized under Sectoral Fund – Infrastructure with an AUM of ₹5,703.04 Crores, a 5-year CAGR of 33.85%, an exit load of 1% and an expense ratio of 1.18%. SEBI rates the risk as Very High. The asset allocation includes 0.12% in Rights, 0.71% in REITs & InvIT, 1.15% in Treasury Bills, 5.10% in Cash & Equivalents and 92.93% in Equity.

DSP India T.I.G.E.R Fund

DSP India T.I.G.E.R Fund is an ELSS mutual fund scheme from DSP Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.

DSP India T.I.G.E.R Fund is categorized under Sectoral Fund – Infrastructure with an AUM of ₹4,896.20 Crores, a 5-year CAGR of 33.58%, an exit load of 1% and an expense ratio of 0.91%. SEBI rates the risk as Very High. The asset allocation includes 0.08% in Rights, 0.63% in REITs & InvIT, 6.65% in Cash & Equivalents and 92.65% in Equity.

Aditya Birla Sun Life Digital India Fund

Aditya Birla Sun Life Digital India Fund is a Sectoral-Technology mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.

Aditya Birla Sun Life Digital India Fund is categorized under Sectoral Fund – Technology with an AUM of ₹4,659.82 Crores, a 5-year CAGR of 29.79%, an exit load of 1% and an expense ratio of 0.75%. SEBI rates the risk as Very High. The asset allocation includes 0.41% in Mutual Funds, 0.51% in Rights, 3.04% in Cash & Equivalents and 96.04% in Equity.

What Are Sectoral Funds?

Sectoral funds are mutual funds that invest primarily in stocks of companies belonging to a specific sector or industry. These funds aim to capitalize on the growth potential of a particular sector by concentrating investments in companies operating within that sector, such as technology, healthcare and banking.

Sectoral funds offer investors focused exposure to a specific industry, potentially allowing them to benefit from sector-specific growth trends or economic cycles. They can be useful for investors with a high-risk appetite and specific views on certain sectors.

However, sectoral funds also carry higher risks due to their concentrated nature. They lack the diversification of broader market funds and can be more volatile, as their performance is closely tied to the fortunes of a single sector.

Features Of Top Performing Sectoral Funds in 1 Year

The main features of top-performing Sectoral Funds in 1 year include focused sector exposure, the potential for high returns, higher volatility, professional management and the ability to capitalize on sector-specific trends. These funds offer a specialized investment approach for investors with specific sector views.

• Focused sector exposure: Sectoral funds invest primarily in stocks of companies within a specific industry or sector, providing concentrated exposure to that particular area of the market.

• High growth potential: By focusing on a specific sector, these funds aim to capitalize on growth trends or economic cycles that benefit that particular industry, potentially leading to higher returns.

• Professional management: Sectoral funds are managed by experienced fund managers who specialize in analyzing and investing in specific sectors, potentially providing valuable expertise and insights.

• Higher volatility: Due to their concentrated nature, sectoral funds can experience higher volatility compared to diversified equity funds, as they are more sensitive to sector-specific risks and market trends.

Best Performing Sectoral Funds in 1 Year

The table below shows the Best Performing Sectoral Funds in 1 Year Based on the lowest to highest expense ratio.

Top Performing Sectoral Funds in 1 Year In India

The table below shows the top-performing sectoral Funds in 1 Year In India Based on the Highest 3Y CAGR.

Top Performing Sectoral Funds in 1 Year List

The table below shows the Top Performing Sectoral Funds in 1 Year List based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing Sectoral Funds in 1 Year

The main factors to consider when investing in top-performing Sectoral Funds in 1 year include sector outlook, fund performance, expense ratio, fund manager expertise and your risk tolerance. These factors can significantly impact the fund’s performance and suitability for your portfolio.

• Sector outlook: Assess the growth prospects and potential challenges for the specific sector. Consider economic trends, government policies and technological changes that may impact the sector’s performance.

• Fund performance: Analyze the fund’s historical performance, comparing it to both its benchmark index and peer funds. Look for consistent outperformance over different market cycles.

• Expense ratio: Compare expense ratios across different sectoral funds. Lower expenses can contribute to better overall returns, but also consider the fund’s performance and strategy.

• Fund manager expertise: Evaluate the fund manager’s experience and track record in managing sector-specific funds. Their expertise in the chosen sector can be crucial for fund performance.

• Risk tolerance: Assess your own risk appetite. Sectoral funds can be more volatile than diversified equity funds, so ensure you’re comfortable with potential fluctuations in returns.

How To Invest In Top Performing Sectoral Funds in 1 Year?

To invest in top-performing Sectoral Funds in 1 year, start by researching and comparing different funds based on their performance, sector focus and expense ratios. Once you’ve selected a fund that aligns with your financial goals and risk tolerance, you can invest through Alice Blue.

Alice Blue is a user-friendly online investment platform that provides tools and resources to help you make informed investment decisions. You can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP), which allows you to invest a fixed amount regularly.

For most investors, a SIP is recommended as it helps in rupee cost averaging and reduces the impact of market volatility on your investment over time. Remember to review and rebalance your investment periodically to ensure it remains aligned with your financial goals.

Advantages Of Investing In Top Performing Sectoral Funds in 1 Year

The main advantages of investing in top-performing Sectoral Funds in 1 year include the potential for high returns, focused exposure to high-growth sectors, expert management and the ability to capitalize on sector-specific trends. These funds offer a specialized investment approach for informed investors.

• High return potential: By focusing on specific high-growth sectors, sectoral funds can potentially generate higher returns compared to diversified equity funds, especially during periods of sector outperformance.

• Focused exposure: Sectoral funds provide concentrated exposure to a particular industry, allowing investors to benefit from sector-specific growth trends or economic cycles.

• Expert management: These funds are typically managed by sector specialists who have in-depth knowledge of the industry, potentially leading to better stock selection and timing decisions.

• Sector rotation strategy: Investors can use sectoral funds to implement sector rotation strategies, moving investments between different sectors based on economic cycles or market trends.

Risks Of Investing In Top Performing Sectoral Funds in 1 Year

The main risks of investing in top-performing Sectoral Funds in 1 year include high concentration risk, increased volatility, sector-specific risks and potential for underperformance. These factors can impact the fund’s performance and lead to significant fluctuations in returns.

• Concentration risk: Sectoral funds invest in a single sector, lacking the diversification of broader market funds. This concentration can lead to higher risk and potential for significant losses if the sector underperforms.

• Higher volatility: Due to their focused nature, sectoral funds can experience greater price swings compared to diversified equity funds, potentially leading to higher short-term losses.

• Sector-specific risks: Each sector faces unique challenges and risks, such as regulatory changes, technological disruptions, or economic shifts. These can significantly impact the performance of sectoral funds.

• Cyclical performance: Sectors often move in cycles, and a top-performing sector in one year may underperform in subsequent years. This cyclical nature can lead to inconsistent returns.

Importance of Sectoral Funds

The main importance of Sectoral Funds lies in their ability to provide focused exposure to high-growth sectors, capitalize on sector-specific trends, offer potential for higher returns and serve as tools for implementing sector rotation strategies. These funds play a crucial role for certain investors.

• Focused sector exposure: Sectoral funds allow investors to gain concentrated exposure to specific industries they believe have high growth potential or are currently outperforming the broader market.

• Capitalizing on trends: These funds enable investors to benefit from sector-specific trends, such as technological advancements, demographic shifts or changes in consumer behaviour.

• Potential for higher returns: By focusing on high-growth sectors, sectoral funds have the potential to generate higher returns compared to diversified equity funds, especially during periods of sector outperformance.

• Sector rotation tool: Sectoral funds can be used as part of a sector rotation strategy, allowing investors to adjust their portfolios based on their views of different sectors’ prospects.

How Long Can You Stay Invested in Sectoral Funds?

The ideal investment horizon for Sectoral Funds typically ranges from 5 to 7 years or longer. This longer time frame allows investors to ride out short-term volatility and sector-specific cycles, potentially benefiting from the long-term growth trends of the chosen sector.

However, the exact duration can vary based on individual financial goals, market conditions, and the specific sector’s outlook. Regular monitoring and rebalancing are crucial when investing in sectoral funds. Investors should be prepared to adjust their holdings based on changing sector dynamics and overall market conditions.

Tax Implications of Investing in Sectoral Funds

Sectoral Funds are taxed as equity mutual funds in India. For holding periods up to 1 year, gains are considered short-term capital gains and taxed at 15%. For holding periods over 1 year, gains up to ₹1 lakh per financial year are tax-free, while gains above this threshold are taxed at 10%.

It’s important to note that these tax rates are subject to change based on government policies. Additionally, the turnover ratio of sectoral funds can impact the tax efficiency of the fund. Higher turnover can lead to more frequent realization of capital gains, potentially increasing the tax liability for investors.

Future of Sectoral Funds

The future of Sectoral Funds in India looks promising, driven by factors such as increasing sector-specific growth opportunities, rising investor awareness and the potential for outperformance in certain industries. As the Indian economy evolves, certain sectors may offer significant growth potential, making sectoral funds attractive.

However, the performance of sectoral funds will continue to be closely tied to sector-specific trends and overall market conditions. Innovations in fund management strategies, the emergence of new sectors, and changes in economic policies could further shape the landscape of sectoral funds in the coming years.

Top Performing Sectoral Funds in 1 Year – FAQs

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.