Many people will think that mutual fund give just 13% annual returns. And stocks will give high returns. But this is true to some extent. Therefore there are set of mutual funds that can double your money. Because, these are sector based mutual fund schemes in India. For more information see sector funds performance. Hence, check best pharmaceutical mutual funds.
Sector Mutual Funds
Sector fund is type of Mutual fund. And that money invests in companies belong to particular sector of country. But investment is in specific sector. Therefore you can invest such money only in one type of industry. Because, it can be invest in Sectors or Industry. Like FMCG, Telecom, Banking, Infrastructure, Power, technology and IT.
Fund managers invest money into companies which are performing well in market. And companies are part of those sectors are doing well locally and globally. However, investment in Stock market has its pros and cons. Similarly, every type of mutual fund savings also comes with various advantages and disadvantages.
On other hand, sector mutual funds are important feature about these funds. So that they are invested in sector which has high growth in future. But it can be difficult task to choose sector which give growth in future. You need to research about all of these sectors and accordingly select companies.
Similarly, time is an important element in sector fund. If you invest in right sector fund at right time then you can make lot of money. As mentioned above these funds come with extreme results. But, sector funds are not classified based on market cap of companies. Therefore sector funds do not fall into particular category. Like large cap, mid cap and small cap.
How many sectors are there in Mutual funds. And there are 8 sector funds in mutual fund. But they are classified into following categories.
- Financial Funds
- Healthcare Funds
- Real Estate Funds
- Utility Funds
- Communication funds
- Technology Funds
- Precious Metal Funds
- Natural Resources Funds
What are best sectors that give high returns for Mutual Fund Schemes.
And Below sectors have given high returns from Mutual fund schemes in last 5 to 10 years. Hence, find below sectors in mutual fund in detail.
FMCG segment: But this segment in Mutual fund gave 19% annual returns in last 5 years. And in 10 years gave 20% annual returns.
Banking Sector: In last 5 years sector gave 15% annual returns. Therefore this sector gave second highest returns among mutual fund schemes in 10 years. Hence, you shall keep investing in banking and financial sector. Due to this industry is ever green.
Pharma Sector: This sector gave 17% annual return in 5 years and 14% in 10 years. Because, pharma sector gave 4th highest returns on mutual fund schemes in 10 years. However, you need to be little cautious when investing in this sector.
Small cap segment in mutual fund: In last 5 years it shows 28% annual returns and 15% in 10 years. But this segment has 3rd highest returns in mutual fund schemes. Hence, you need to invest 15 to 25% in small cap segment.
Midcap Segment: Midcap Segment gave 25% annual returns in last 5 years. And in 10 years gave 14% annual returns. Therefore you can keep investing 20% in mid cap funds.
Multi-cap segment: You can always invest some portion in multicap / diversified funds. But, in 10 years this segment gave 11% annual returns.
ELSS Segment: This segment gave 18% annual returns in 5 years. And this is one of best way to invest your money for tax saving. But to get high returns for your money saved for tax.
Balanced Segment in Mutual fund: If you are moderate to low risk taker then you can invest in such funds. Therefore, it gave 11% annual returns in last 10 years.
Large cap Segment: Moreover, large cap funds move based on SENSEX movement. Hence, you must invest good portion in large cap funds. But in last 10 years it gave 10% annual returns.
Similarly, you can diversify your portfolio by investing your money of 30% in large cap funds. In addition, 20% in multicap, 20% in midcap, 20% in small cap and 10% in balanced segment. So based on risk you can play with this ideal portfolio. However, you may add more in midcap and small cap fund if you can take high risk. And also add more in balanced segment if you are moderate to low risk taker.
Finally, see top performing small cap mutual fund to invest in India. Probably, check best large cap fund that performed well in last 5 to 10 years. Therefore for more details you can see best sector funds to invest in 2017.