Top Sectoral SIP Mutual Fund vs Top Thematic SIP Mutual Fund in 5 Years: Which has given higher capital gains on Rs 21,000 monthly investment?
Top Sectoral SIP Mutual Fund vs Top Thematic SIP Mutual Fund in 5 Years: Sectoral funds focus on the businesses within a specific industry. They invest in sectors such as infrastructure, technology, financial services, healthcare, etc. Thematc mutual funds, on the other hand, invest in specific themes or trends, such as PSU, technology, clean energy, healthcare, etc.
Top Sectoral SIP Mutual Fund vs Top Thematic SIP Mutual Fund in 5 Years: Sectoral funds and thematic funds are quite alike. Both invest at least 80 per cent of their money in a particular sector/theme. Both invest in a number of large cap stocks that have been performing well over the last 3 years. Mutual funds from both categories have been some of the top-performing equity funds in a span of 5 years. If we talk about performance, PSU has been the top performer equity mutual fund category in 1 year and 3 years, as per Value Research data. On the other hand, sectoral - infrastructure is the second-best equity mutual fund category in 1 and 3 years. In this write-up, we will discuss more features of sectoral and thematic mutual funds; which are the top mutual funds from each category on the basis of annualised SIP returns (XIRR) in 5 years, and which of the two has given higher long term capital gains on a Rs 12,500 monthly SIP in the same time frame.
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What are sectoral mutual funds?
Sectoral funds focus on the businesses within a specific industry. They can focus on sectors such as infrastructure, technology, financial services, healthcare, etc. If it's an infra sectoral fund, it will have 80 per cent of its investment in infra stocks. It will apply to other sector mutual funds as well.
What are sectoral mutual funds?
The positive side of sectoral funds is that they can give above-average returns when the stocks of a particular sector are performing well, but they can fare poorly if the sector's performance slides. Sectoral mutual funds also offer diversification to investors in a number of firms in a specific sector.
What are thematic mutual funds?
These funds invest in specific themes or trends, such as PSU, technology, clean energy, healthcare, etc. Like sectoral funds, thematic funds also diversify investor investment in a number of companies representing the chosen theme.
What are thematic mutual funds?
But the performance depends on how stocks in that theme work. These days, PSU thematic funds have been performing well since PSU firms are getting business due to the government's excessive focus on them.
Best sectoral SIP mutual fund in 5 years
Quant Infrastructure Fund - Direct Plan is the best sectoral infrastructure fund in terms of annualised SIP returns in 5 years.
Best thematic SIP mutual fund in 5 years
Invesco India PSU Equity Fund - Direct Plan is the best thematic mutual on the basis of annualised SIP returns in the 5-year time frame.
What is Quant Infrastructure Fund - Direct Plan?
The fund tops the sectoral category with 43.58 per cent anualised SIP returns in the 5-year time frame.
It has assets under management of Rs 3,991 crore, while its net asset value (NAV) is Rs 45.2310.
What is Quant Infrastructure Fund - Direct Plan?
Benchmarked against NIFTY Infrastructure TRI, the fund has given 20.20 per cent annualised returns (CAGR) since its inception in January 2013.
At an expense ratio of 0.66 per cent, the fund has Rs 5,000 as the minimum lump sum investment and Rs 1,000 as the minimum SIP investment.
What is Quant Infrastructure Fund - Direct Plan?
The fund has 81.93 per cent of its investments in equity, 14.58 per cent in cash and cash equivalents, and 3.49 per cent in debt.
In a portfolio of just 19 stocks, the fund has Reliance Industries Limited, Samvardhana Motherson, Tata Power, Life Insurance Corporation, Adani Power, and Kalyani Steels as the main holdings.
Invesco India PSU Equity Fund - Direct Plan
The top thematic mutual fund has given 40.12 per cent annualised SIP returns in the 5-year period.
The fund has an asset base of Rs 1,594 crore, while its NAV is Rs 77.0700.
Invesco India PSU Equity Fund - Direct Plan
Benchmarked against BSE PSU TRI, the fund has given 18.68 per cent annualised returns since its launch in January 2013.
At an expense ratio of 0.77 per cent, the fund has Rs 1,000 as the minimum lump sum investment and Rs 500 as the minimum SIP investment.
Invesco India PSU Equity Fund - Direct Plan
The fund has 97.47 per cent of its investment in equity and 2.53 per cent in cash and cash equivalents.
In its portfolio of 22 stocks, the fund has NTPC, Power Grid, SBI, BEL, HAL, Bharat Petroleum, and Coal India as the main holdings.
Top Sectoral Mutual Fund vs Top Thematic Mutual Fund in 5 Years: Which has given higher returns on Rs 21,000 monthly SIP?
A Rs 12,500 monthly investment in Quant Infrastructure Fund - Direct Plan in 5 years, or Rs 7,50,000 investment overall, has grown to Rs 21,47,200 in the 5-year period.
Top Sectoral Mutual Fund vs Top Thematic Mutual Fund in 5 Years: Which has given higher returns on Rs 21,000 monthly SIP?
A Rs 12,500 monthly SIP in Invesco India PSU Equity Fund - Direct Plan has grown to Rs 19,84,141 in the 5-year time frame.