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Difference between revisions of "Thematic Mutual Fund Schemes"
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{{Alphabets}} | {{Alphabets}} | ||
| − | + | Welcome to this session on '''Thematic and Sectoral Mutual Fund Schemes'''. | |
| − | Thematic | ||
| − | So, if the theme performs, the returns will excellent | + | '''Thematic mutual funds''' are a type of equity mutual funds that invest in a specific theme. |
| + | |||
| + | The idea is that the scheme tries to take advantage of the theme and make wealth for the investor. | ||
| + | |||
| + | So, if the theme performs well, the returns of these schemes will excellent! | ||
However, if the theme does not perform well, the returns will be subdued. | However, if the theme does not perform well, the returns will be subdued. | ||
| − | Some examples of thematic funds are those that invest in PSU companies, companies that focus on | + | Some examples of thematic funds are those that invest in PSU companies, companies that focus on Rural consumption story etc. |
| + | |||
| + | A '''Sectoral Mutual Fund''' is an equity mutual fund scheme that invests in one sector. | ||
| + | |||
| + | Say, for example, the Banking and Finance sector, or Pharma sector. | ||
| + | |||
| + | Like with Thematic schemes, Sectoral scheme returns are linked to the performance of the sector. | ||
| + | |||
| + | {{GAS}} | ||
| − | Investing in | + | ==Pros and Cons== |
| + | One of the reasons for investing in Mutual Funds is that we want good ample diversification.. | ||
| + | |||
| + | We know, increased diversification reduces the risk and dependence of fewer securities to give us returns. | ||
| + | |||
| + | By investing in thematic and sectoral schemes, we are reducing our scope of diversification by investing only within the theme and sector. | ||
| + | |||
| + | Investing in these type of schemes requires some understanding about the theme, in particular about the trends of the companies that fall under the theme and timing the market moments as well. | ||
Hence, we need to be very perfect in entering and exiting the theme at the right time so as to get the best of returns. | Hence, we need to be very perfect in entering and exiting the theme at the right time so as to get the best of returns. | ||
| Line 15: | Line 33: | ||
If you follow the markets thoroughly, have conviction on the performance of the theme, have a clear strategy about entry and exit, then these scheme might be suitable for you. | If you follow the markets thoroughly, have conviction on the performance of the theme, have a clear strategy about entry and exit, then these scheme might be suitable for you. | ||
| − | + | In other words, these schemes are useful to those high risk taking equity investors only. | |
| + | |||
| + | If you are unsure of your risk appetite and still want to try equities, perhaps [[Diversified Equity Funds]] are better. | ||
==Sundaram Rural India Fund== | ==Sundaram Rural India Fund== | ||
| − | The primary investment objective of the scheme is to generate consistent long-term returns by investing predominantly in equity/equity-related instruments of "Companies that are | + | The primary investment objective of the scheme is to generate consistent long-term returns by investing predominantly in equity/equity-related instruments of "Companies that are focusing on Rural India". |
Off late, our Union Budget (particularly 2016 and 2017) have greater focus on Rural India. | Off late, our Union Budget (particularly 2016 and 2017) have greater focus on Rural India. | ||
| Line 24: | Line 44: | ||
However, keep in mind of the need to enter and exit from the scheme at the right time to get the most of the returns. | However, keep in mind of the need to enter and exit from the scheme at the right time to get the most of the returns. | ||
| + | |||
==Switching out of UTI Infrastructure Fund== | ==Switching out of UTI Infrastructure Fund== | ||
| − | I want to switch from my less performing UTI infrastructure fund to another. Which is a good one please advise | + | |
| + | ''I want to switch from my less performing UTI infrastructure fund to another. Which is a good one please advise.'' | ||
As the name is saying, it is a sectoral / thematic fund. It will perform only when the underlying theme works out. | As the name is saying, it is a sectoral / thematic fund. It will perform only when the underlying theme works out. | ||
| Line 36: | Line 58: | ||
*Date: 4 April 2017 | *Date: 4 April 2017 | ||
| + | |||
| + | ==Infrastructure Theme Funds== | ||
| + | |||
| + | *Aditya Birla Sun Life Infrastructure Fund | ||
| + | *BOI AXA Manufacturing & Infrastructure Fund | ||
| + | *Canara Robeco Infrastructure Fund | ||
| + | *DSP BlackRock T.I.G.E.R. Fund | ||
| + | *Escorts Infrastructure Fund | ||
| + | *Franklin Build India Fund | ||
| + | *HDFC Infrastructure Fund | ||
| + | *HSBC Infrastructure Equity Fund | ||
| + | *ICICI Prudential Infrastructure Fund | ||
| + | *ICICI Prudential Manufacture In India Fund | ||
| + | *IDFC Infrastructure Fund | ||
| + | *Invesco India Infrastructure Fund | ||
| + | *Kotak Infrastructure and Economic Reform Fund | ||
| + | *L&T Infrastructure Fund | ||
| + | *LIC MF Infrastructure Fund | ||
| + | *Reliance ETF Infra BeES | ||
| + | *SBI Infrastructure Fund | ||
| + | *Sundaram Infrastructure Advantage Fund | ||
| + | *Tata Infrastructure Fund | ||
| + | *Taurus Infrastructure Fund | ||
| + | *UTI Infrastructure Fund | ||
| + | *[[HDFC Housing Opportunities Fund - Series 1]] | ||
| + | |||
| + | ==Pharma Sector Funds== | ||
| + | |||
| + | *ICICI Prudential Pharma Healthcare and Diagnostics (PHD) Fund | ||
| + | |||
| + | ==Other Sectoral Funds== | ||
| + | |||
| + | *Sundaram Services Fund | ||
| + | *BNP Paribas India Consumption Fund | ||
| + | |||
===Related Topics=== | ===Related Topics=== | ||
*[[Equity Mutual Funds]] | *[[Equity Mutual Funds]] | ||
| Line 48: | Line 105: | ||
*[[Smallcap Mutual Fund Schemes]] | *[[Smallcap Mutual Fund Schemes]] | ||
[[Category:Mutual Funds]] | [[Category:Mutual Funds]] | ||
| + | {{Alphabets}} | ||
Latest revision as of 08:34, 8 October 2018
| Home | Personal Finance | Mutual Funds | Equity |
Welcome to this session on Thematic and Sectoral Mutual Fund Schemes.
Thematic mutual funds are a type of equity mutual funds that invest in a specific theme.
The idea is that the scheme tries to take advantage of the theme and make wealth for the investor.
So, if the theme performs well, the returns of these schemes will excellent!
However, if the theme does not perform well, the returns will be subdued.
Some examples of thematic funds are those that invest in PSU companies, companies that focus on Rural consumption story etc.
A Sectoral Mutual Fund is an equity mutual fund scheme that invests in one sector.
Say, for example, the Banking and Finance sector, or Pharma sector.
Like with Thematic schemes, Sectoral scheme returns are linked to the performance of the sector.
Contents
Pros and Cons
One of the reasons for investing in Mutual Funds is that we want good ample diversification..
We know, increased diversification reduces the risk and dependence of fewer securities to give us returns.
By investing in thematic and sectoral schemes, we are reducing our scope of diversification by investing only within the theme and sector.
Investing in these type of schemes requires some understanding about the theme, in particular about the trends of the companies that fall under the theme and timing the market moments as well.
Hence, we need to be very perfect in entering and exiting the theme at the right time so as to get the best of returns.
If you follow the markets thoroughly, have conviction on the performance of the theme, have a clear strategy about entry and exit, then these scheme might be suitable for you.
In other words, these schemes are useful to those high risk taking equity investors only.
If you are unsure of your risk appetite and still want to try equities, perhaps Diversified Equity Funds are better.
Sundaram Rural India Fund
The primary investment objective of the scheme is to generate consistent long-term returns by investing predominantly in equity/equity-related instruments of "Companies that are focusing on Rural India".
Off late, our Union Budget (particularly 2016 and 2017) have greater focus on Rural India.
So, this scheme might perform well.
However, keep in mind of the need to enter and exit from the scheme at the right time to get the most of the returns.
Switching out of UTI Infrastructure Fund
I want to switch from my less performing UTI infrastructure fund to another. Which is a good one please advise.
As the name is saying, it is a sectoral / thematic fund. It will perform only when the underlying theme works out.
My view is that such schemes are for experienced investors who have skills to time the market.
I am not aware of good schemes from UTI MF per se because all of them always give subdued returns. I suggest you to redeem the funds and go for a good multicap fund such as, say, BSL Equity Fund of ICICI Prudential Value Discovery Fund.
If you still want to stay hooked with UTI for some reason, switch the units from gradually from UTI infrastructure fund to UTI Midcap fund.
- Date: 4 April 2017
Infrastructure Theme Funds
- Aditya Birla Sun Life Infrastructure Fund
- BOI AXA Manufacturing & Infrastructure Fund
- Canara Robeco Infrastructure Fund
- DSP BlackRock T.I.G.E.R. Fund
- Escorts Infrastructure Fund
- Franklin Build India Fund
- HDFC Infrastructure Fund
- HSBC Infrastructure Equity Fund
- ICICI Prudential Infrastructure Fund
- ICICI Prudential Manufacture In India Fund
- IDFC Infrastructure Fund
- Invesco India Infrastructure Fund
- Kotak Infrastructure and Economic Reform Fund
- L&T Infrastructure Fund
- LIC MF Infrastructure Fund
- Reliance ETF Infra BeES
- SBI Infrastructure Fund
- Sundaram Infrastructure Advantage Fund
- Tata Infrastructure Fund
- Taurus Infrastructure Fund
- UTI Infrastructure Fund
- HDFC Housing Opportunities Fund - Series 1
Pharma Sector Funds
- ICICI Prudential Pharma Healthcare and Diagnostics (PHD) Fund
Other Sectoral Funds
- Sundaram Services Fund
- BNP Paribas India Consumption Fund
Related Topics
- Equity Mutual Funds
- Debt Mutual Funds
- Balanced Funds
- Equity Linked Savings Schemes (ELSS)
- Liquid Mutual Fund Schemes
- Arbitrage Mutual Fund Schemes
- Monthly Income Plans
- Exchange Traded Funds
- International Mutual Fund Schemes
- Smallcap Mutual Fund Schemes
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