2 sectoral mutual fund categories offer 23% return each in five years. Should you invest?
Energy & power based mutual funds gave an average return of 23.40% in five years (April 2019-April 2024). There were around three schemes in the category that completed five years of existence. Nippon India Power & Infra Fund gave 26.35% return. Tata Resources & Energy Fund and DSP Natural Resources & New Energy Fund gave 22.87% and 20.98% returns respectively in the same time period.
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View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-109121090»>The other sectoral category that gave 23% return in five years was Pharma & Health Care sector based funds. These funds gave an average return of 23.08% return in a five year period. There were eight schemes in the category that completed five years in the market. DSP Healthcare Fund, the topper in the category, gave 25.82% in five years. LIC MF Healthcare Fund gave the lowest return of 19.01% return in five years.
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Are you wondering what factors contributed to this performance by both the categories? “The Pharma sector has outperformed on the back of a stable pricing environment in the United States. Valuations in the pharma/healthcare sector are currently trading at a forward PE multiple that is well above long term averages. Energy and Infrastructure mutual funds have performed well as a result of both an increase in order books and capex spending from the government,” said Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm
