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Thematic Mutual Fund Schemes
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Introduction
Thematic mutual funds are a type of equity mutual funds that invest in a specific theme.
So if the theme performs, the returns will be good.
So, investing in this type of funds requires some understanding about the theme and timing the market moments as well.
If you feel you have the expertise of entering and existing the scheme at the right time, you can invest / hold in it.
Otherwise, Diversified Mutual Fund schemes 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 focussing 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 Vijay sir...
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
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