Manufacturing-focused mutual funds have shown impressive returns over the past year, as
per data from ET MutualFunds. The ICICI Prudential Manufacturing Fund, the
longest-running in its category, led with a return of 68.87%. Mirae Asset Nifty India
Manufacturing ETF and Mirae Asset Nifty India Manufacturing ETF FoF followed closely
with returns of 61.17% and 60.04%, respectively. Other notable performers include Navi
Nifty India Manufacturing Index Fund with 59.84% and Kotak Manufacture in India Fund
with 55.57% returns.
Considering recent performance, investors with an aggressive risk profile and a long-term
horizon of five years or more may find these funds appealing. However, those already
well-exposed to the manufacturing sector should be cautious about concentration risk. Sagar
Shinde, VP Research at Fisdom, advises potential investors to avoid newly launched funds
without proven track records and consider staggered investments through SIPs or STPs.
Government initiatives like Make in India and PM Gati Shakti have bolstered confidence in
the manufacturing sector, aiming to enhance domestic production and infrastructure. Looking
ahead, expectations for the manufacturing sector include continued support through existing
programs and potentially new schemes focusing on areas such as defence, railways,
electronics, and automobiles, along with measures to boost employment.
Investors interested in thematic or sector-specific funds should have a solid understanding of
the sector and a long-term investment horizon to navigate market cycles effectively.
Menu
