scorecardresearchSome sectoral thematic mutual funds gave 30 percent return in past 3 years;

Some sectoral thematic mutual funds gave 30 percent return in past 3 years; See list

Updated: 27 May 2022, 07:36 AM IST
TL;DR.

There are a number of thematic funds in the tech & healthcare categories that gave high returns in the recent past

Technology fund schemes are good for investors who aim to invest in a portfolio which invests predominantly in technology and technology dependent companies.

Technology fund schemes are good for investors who aim to invest in a portfolio which invests predominantly in technology and technology dependent companies.

Before you zero in on a mutual fund to invest, it is advisable to compare the returns given by different category of funds. Here we give a snapshot of the returns posted by thematic funds such as IT, pharma, energy and healthcare.

Some of these funds, especially in the technology & healthcare categories, gave as high a return as 30 percent in the past three years.

As we can see in the three-year chart (below), ICICI Prudential Technology Fund gave a return of 32.89 percent, followed by Aditya Birla Sun Life Digital India Fund that gave a return of 30.86 percent, and Tata Digital India Fund that gave a return of 29.43 percent.

We give a lowdown on some of these fund schemes here:

 

ICICI Prudential Technology Fund: This has given a CAGR of 12.36 percent since inception in March 2000. This means if someone invested one lakh 22 years ago, it would have swelled to 12,98,548 now. The fund scheme has an AUM of 8,742 crore.

This scheme is good for investors who aim to invest in a portfolio which invests predominantly in technology and technology dependent companies

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These are some of the holdings of ICICI Prudential Technology Fund

The scheme has 78 percent allocation to IT companies, 7.16 percent to telecom and 5.73 percent to software companies, and the rest to media, entertainment and consumer services. Its top holdings are Infosys, Wipro, HCL, Tech Mahindra, Bharti Airtel and TCS, as shown in the image (right above).

Aditya Birla Sun Life Digital India Fund: This scheme commenced in January 2000. It’s a multi sector scheme with the objective of long-term capital growth, through a portfolio of 100 percent equity investments in technology and technology enabled companies.

Its return since inception is 11.26 percent. This means one lakh invested in Jan 2000 would have now grown to 10,45,825.

This is meant for investors who are looking for long term capital growth and want to invest in equity and equity related securities with a focus on investing in technology, telecom, media, entertainment and other related ancillary sectors.

As far as its portfolio is concerned, it has invested 80.9 percent of its assets in information technology, 8.3 percent in communication services and 3.8 percent each in financials and consumer discretionary.

Its top holdings include Infosys, TCS, HCL, Tech Mahindra, Wipro, Bharti Airtel, Clearing Corporation of India and Mphasis.

Fund schemes                                     3-year returns (%)
ICICI Prudential Technology Fund              32.89
Aditya Birla Sun Life Digital India Fund     30.86
Mirae Asset Healthcare Fund                         29.64
Tata Digital India Fund                             29.43
Tata India Pharma & HealthCare Fund       24.45
Tata Resources & Energy Fund                   27.08
UTI Healthcare Fund                                     23.58
DSP Healthcare Fund                                  28.97

(AMFI data as on May 20, 2022)

As we can see in the chart above, the returns given by the top performing thematic funds range between 28 to 33 percent. And most of these funds belong to the category of technology, energy, pharma and healthcare.

Fund schemes                                             1-year returns (%)
Quant ESG Equity Fund                             31.58
Quant Infrastructure Fund                    29.35
ICICI Prudential Infrastructure Fund             27.76
SBI Consumption Opportunities Fund      25.42
Aditya Birla Sun Life Commodity Equities - Global Agri Fund                       22.10

(AMFI data on May 20)

In the chart above, it is clear that mutual fund schemes in ESG and infrastructure categories have posted returns in the range of 27 to 32 percent in the past one year.

Quant ESG Equity Fund gave a return of 31.58 percent, while ICICI Prudential Infrastructure Fund’s one year return was 27.76 per cent.

 

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First Published: 27 May 2022, 07:36 AM IST