The past year has been quite challenging for equity mutual fund investors. Market volatility persisted throughout the year. Multiple categories of equity funds could not deliver expected returns. However, even during these difficult times, several mutual funds have surprised investors. Over the last year, these funds have managed to deliver returns of more than 23 percent.
The most notable aspect of this success is that most of these funds are not diversified equity funds. These are primarily sectoral and thematic schemes that focused on banking, financial services, auto and transportation sectors. Despite the weak market, investor confidence remained intact in certain specific sectors. This strong return has emerged from there.
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Analyzing the performance of the past year shows that banking and financial services performed best among domestic equity sectors. The average return of these sectors was approximately 21 percent. Next comes the auto and transportation sector, where the average return was close to approximately 18 percent.
However, not all equity categories performed like this. While the international equity fund category topped with nearly 33 percent returns, most equity sub-categories in the domestic market remained stuck at single-digit returns. In the last year, only two sectoral funds and two thematic funds managed to deliver double-digit returns.
This trend provides an important lesson for investors. Even when the market is under pressure, not all sectors are equally affected. Opportunities are still created in certain specific sectors. However, it is essential to understand the risks before investing in sectoral and thematic funds.
These 5 mutual funds delivered big returns
Quant BFSI Fund- Direct Plan: 27.14%
DSP Banking and Financial Services Fund- Direct Plan: 25.47%
HDFC Transportation and Logistics Fund- Direct Plan: 24.87%
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ITI Banking and Financial Services Fund- Direct Plan: 24.31%
SBI Banking and Financial Services Fund- Direct Plan: 23.80%
{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
