Investing in Renaissance: Manufacturing-Themed Funds as a Gateway

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₹4.79 trillion over the scheme's lifespan (spanning at least five years). Amidst all these, diligent efforts have been undertaken to elevate the skill set of India's workforce to cater to the manufacturing sector's needs, particularly in high-tech and advanced industries. Thematic mutual funds with a manufacturing focus primarily invest in companies engaged in manufacturing goods and products.

These firms span various industries, including automobiles, chemicals, engineering, textiles, consumer durables, and more. The performance of these funds is intricately linked to the manufacturing sector's performance and is positively influenced by factors propelling the industry. Thematic manufacturing funds offer potential for heightened returns during bullish market phases.

They are particularly suitable for investors with a higher risk tolerance and a robust belief in India's manufacturing sector's growth prospects. Stocks linked to manufacturing as a theme have thus far have exhibited commendable performance. Over the one-year period ending June 2023, Nifty India Manufacturing Index has recorded gains of 27%, surpassing the broader market.

Over a more extended horizon such as five years, the manufacturing stocks basket has delivered a 13.5% Compound Annual Growth Rate (CAGR). There are mutual fund offerings based on the manufacturing theme which have outperformed the Nifty India Manufacturing Index by several basis points. Efficient manufacturing funds aim to diversify across various manufacturing sectors.