As the year draws to a close, most people have made resolutions to stick by.

We at Groww want our investors to help in resolution making pertaining to their investments.

Sector funds are those funds that essentially invest money in stocks of companies that operate in a particular sector. Given the limit to just one or two sectors, the riskiness quotient of this kind of fund is high as compared to other traditional mutual funds.

However, given the performance that might be visible in few sectors owing to economic cycles or macro-economic factors that may drive it, we can invest in these funds. But before jumping in we should always keep in mind our risk appetite.

Let’s begin!

Best Sector Funds 2019 - At a Glance
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Aditya Birla Sun Life India GenNext Direct Fund-Growth 0.39% 11.38% 15.4% 1.43% 14% Equity
(Sectoral/Thematic)
High
ICICI Prudential Banking and Financial Services Direct Plan-Growth 9.36% 15.94% 17.34% 1.22% 141% Equity
(Sectoral/Thematic)
High
Mirae Asset Great Consumer Fund Direct-Growth -0.68% 13.61% 14.28% 0.59% 30% Equity
(Sectoral/Thematic)
High
Franklin Build India Direct Fund-Growth 8.67% 10.67% 15.86% 1.13% 12% Equity
(Sectoral/Thematic)
High
Tata Digital India Fund Direct-Growth 4.5% 17.19% NA 0.83% 16% Equity
(Sectoral/Thematic)
High

Best Sector Funds 2019 – Details

1. Aditya Birla Sun Life India GenNext Fund

Launched in 01-Jan-2013, this fund has given tremendous returns since its launch and mainly caters to investment in themes and companies that have huge potential to grow by leveraging on India’s growth story.

Key Information:-

Launch Date 01-Jan-2013
NAV (13-Dec 2018) 83.8
Plan Type Direct
Ratings by Groww 5 Star
AUM (Fund Size) 759 crores
Riskometer High
Minimum SIP 1000
Performance w.r.t its Benchmark Consistently beaten its benchmark NIFTY 500 TRI since its launch
Age of the Fund 5 years old
Expense Ratio 1.51%
Exit Load If withdrawal takes place between 0 to 1 year, then exit load is 1%
Type Sectoral Fund
Fund Manager Anil Shah, Chanchal Khandelwal

Investment Objective

The prime objective of this fund is to generate capital appreciation by investing in equity and equity related securities of companies that are expected to benefit from the rising consumption patterns in India, which has gained a high disposable income due to the young generation.

Holding Analysis

Because of the pace at which the economy as well as the rising disposable income of the next generation, this fund the huge potential for growth in the coming future.

The top holdings of this fund are HDFC Bank Ltd., ICICI Bank Ltd., ITC Ltd., Maruti Suzuki Ltd. and PVR Ltd

2.ICICI Prudential Banking and Financial Services Fund – Direct

Launched on 01-Jan-2013, this fund invests primarily in banking and financial service stocks. At the same time, it has generated a lot of wealth for its investors.

Key Information

Launch Date 01-Jan-2013
NAV (13-Dec 2018) 63.1
Plan Type Direct
Ratings by Groww 4 Star
AUM (Fund Size) 2,458 crores
Riskometer High
Minimum SIP 100
Performance w.r.t its Benchmark Has beaten its benchmark NIFTY Financial Services TRI long periods of time
Age of the Fund 5 years old
Expense Ratio 1.18%
Exit Load If withdrawal takes place between 0 to 1 year, then exit load is 1%
Type Equity-Sectoral Fund
Fund Manager Roshan Chutkey

Investment Objective             

The aim of this fund is to generate long-term capital appreciation by investing in equity and equity-related securities of companies in the banking and financial service industry.

Check out the best banking sector stocks of 2019

However, there is no assurance that the investment objective will be satisfied.

Holding Analysis 

The fund has given exceptional returns and further invests mostly in private sector banks.

Some of its top holding are, HDFC Bank, Kotak Mahindra Bank, ICICI Bank, Federal Bank, Karur Vysya Bank etc.

Also, know about the best large-cap funds of 2019

It also invests in some major NBFCs like Bajaj Finserv, Muthoot Finance, M&M Financial Services etc  which have performed tremendously in the last few years.

Also, for an economy such as that of India, it becomes necessary for financial institutions to perform to fuel the growth in the economy. Therefore, investors who invest in this fund for a long-term are sure to benefit.

3.Mirae Asset Great Consumer Fund – Direct 

This fund was launched on 01-Jan-2013 and has a small AUM corpus of approximately 499 crores.

As the name suggests, this fund bets on the consumer sector in India which has still a huge potential left. Let us look in at the details now.

Key Information:-

Launch Date 01-Jan-2013
NAV (13-Dec 2018) 36.5
Plan Type Direct
Ratings by Groww 4 Star
AUM (Fund Size) 499 crores
Riskometer High
Minimum SIP 1000
Performance w.r.t its Benchmark Has consistently beaten its benchmark NIFTY 200 TRI since its launch
Age of the Fund 5 years old
Expense Ratio 0.74%
Exit Load If withdrawal takes place between 0 to 1 year, then exit load is 1%
Type Equity-Sectoral Fund
Fund Manager Bharti Sawant, Ankit Jain

Investment Objective

Given the solid growth potential for consumption led demand in countries such as India and China, this fund seeks to generate long-term capital appreciation by primarily investing in equity and equity-related securities of consumption stocks.

Top Mid-Cap Mutual Funds to Invest in 2019

Holding Analysis

Mainly betting on stocks of consumer goods, its top holdings are, ITC Ltd., Dabur India Ltd., Nestle India, Havells India, Colgate Palmolive, etc.

It also invests in few other sectors such as financial services and automobiles.

5 Best Small Cap Funds You Can Consider Investing in 2019

This fund has a huge way to go in the coming future because of the rising disposable income of the people in India.

4. Franklin Build India Fund – Direct

Launched on 01-Jan-2013, this fund invests in a variety of sectors such as financial services; energy, cement, cement products etc.

Taking into account the sectors those are, it will be instrumental in providing growth to the Indian economy.

Key Information:-

Launch Date 01-Jan-2013
NAV (13-Dec 2018) 41.3
Plan Type Direct
Ratings by Groww 5 Star
AUM (Fund Size) 1091 crores
Riskometer High
Minimum SIP 500
Performance w.r.t its Benchmark Has beaten its benchmark NIFTY Infrastructure TRI consistently
Age of the Fund 5 years old
Expense Ratio 1.18%
Exit Load If withdrawal takes place between 0 to 1 year, then exit load is 1%
Type Equity-Sectoral Fund
Fund Manager Anand Radhakrishnan, Roshi Jain, Srikesh Nair

Investment Objective

The scheme seeks to generate capital appreciation in equity and equity-related securities engaged directly and indirectly in infrastructure-related activities.

Holding Analysis

With a low expense ratio, lower fund size, market-beating returns and holdings in top companies, this fund is very good for long-term investors.

Check out the best tax saving funds of 2019

5.Reliance Pharma Fund – Direct 

Launched in 01-Jan-2013, this fund has provided decent returns by investing in companies of pharma sector.

Key Information:-

Launch Date 01-Jan-2013
NAV (13-Dec 2018) 157.3
Plan Type Direct
Ratings by Groww 5 Star
AUM (Fund Size) 2,752 crores
Riskometer High
Minimum SIP 100
Performance w.r.t its Benchmark Has beaten its benchmark NIFTY Pharma TRI long periods of time
Age of the Fund 5 years old
Expense Ratio 1.40%
Exit Load If withdrawal takes place between 0 to 1 year, then exit load is 1%
Type Equity-Sectoral Fund
Fund Manager Sailesh Raj Bhan

Investment Objective

As the name suggests, this fund invests primarily in pharma and pharma-related companies (maximum in large and mid -cap space in companies such as Dr. Reddy’s Laboratories, Divis Laboratories, Aurobindo Pharma, Sun Pharma, Sanofi India Ltd., Cipla Ltd., Biocon Ltd.

The fund mainly seeks to generate capital appreciation for its investors.

Holding Analysis

6. Tata Digital India Fund – Direct 

Launched on 28th December 2015, this fund has beaten most of its peers in the same category and set to grow even more in the digital sector. It has given phenomenal returns over the years and is one of the most sought after funds in the sector category.

Key Information

Launch Date  28th December, 2015
NAV (19-Dec 2018) 14.9
Plan Type Direct
Ratings by Groww 4 Star
AUM (Fund Size) 368 crores
Riskometer High
Minimum SIP 500
Performance w.r.t its Benchmark Has beaten the peer group companies in the industry over different periods of time
Age of the Fund 3 years old
Expense Ratio 1.02%
Exit Load If withdrawal takes place between 0 to 3 months, then exit load is 0.25%
Type Equity-Sectoral Fund
Fund Manager Danesh Mistry

Investment Objective

The fund aims for capital appreciation through investments in the stocks of the companies engaged in the transportation and technological sector.

Holding Analysis

The fund has given brilliant returns in three years and its top holdings are Infosys Ltd, Tata Consultancy Services Ltd, Tech Mahindra Ltd, HCL Technologies Ltd, Repo, Wipro Ltd

Here are the best multi-cap funds of 2019

Conclusion

Though putting in money directly into sector funds is riskier as compared to following the route of SIPs or  other equity mutual funds, but if we as investors follow a particular sector or are bullish on various initiatives by the government and other fundamentals and macro-economic factors driving the industry, sectoral funds can be our go – to option.

Happy Investing!

Disclaimer: The views expressed in this are that of the author and not those of Groww

 

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