Thematic mutual funds have gained popularity among investors for their focused approach to specific sectors or themes, offering the potential for high returns. These funds align their investments with trends like technology, green energy, or healthcare, allowing investors to capitalize on emerging opportunities.
Over the past year, certain thematic mutual funds have delivered extraordinary returns, with some exceeding 60%, showcasing their ability to outperform the broader market. In this article, we highlight three standout thematic mutual funds that have achieved this remarkable feat, exploring the driving factors behind their performance and their potential for future growth in dynamic market conditions.
HDFC Defence Fund – Growth – Direct Plan
HDFC Defence Fund is a specialized thematic fund that focuses on the rapidly growing defense sector in India. With a NAV of ₹20.51 (as of 21/11/2024), it has delivered a staggering 1-year return of 136.17%, making it one of the top-performing funds.
The fund requires a minimum investment of ₹100, with a SIP option starting at ₹100. It has an exit load of 1% if redeemed within one year and no charges thereafter. By investing in companies involved in defense manufacturing and services, this fund leverages the “Atmanirbhar Bharat” initiative, making it an attractive choice for long-term growth.
SBI PSU Fund – Growth – Direct Plan
SBI PSU Fund focuses on Public Sector Undertakings (PSUs), which are poised for growth due to increased government investments and reforms. With a NAV of ₹33.22 (as of 21/11/2024), it has delivered an impressive 1-year return of 98.08%.
The fund requires a minimum investment of ₹5,000, with SIP options starting at ₹500. It carries a 0.50% exit load if redeemed within 30 days, with no charges after that. This fund is ideal for investors seeking to capitalize on the revival and growth of PSUs across diverse sectors like energy, infrastructure, and banking.
ICICI Prudential Transportation and Logistics Fund – Growth – Direct Plan
This fund focuses on the booming transportation and logistics sector, which is benefiting from increasing infrastructure development and economic growth. With a NAV of ₹18.11 (as of 21/11/2024), it has provided a 1-year return of 63.64%.
The fund requires a minimum investment of ₹5,000, while SIPs can start at ₹100. It imposes a 1% exit load if redeemed within one month but no charges after that. By targeting companies involved in transportation, logistics, and supply chain solutions, this fund offers investors an opportunity to benefit from the sector’s expansion and modernization in the coming years.
Conclusion
These three thematic mutual funds showcase exceptional performance, with returns ranging from 63.64% to 136.17% over the past year. HDFC Defence Fund leads with its focus on India’s growing defense sector, followed by SBI PSU Fund capitalizing on public sector reforms, and ICICI Prudential Transportation and Logistics Fund riding the infrastructure boom.
With low entry barriers and reasonable exit loads, these funds offer retail investors unique opportunities to participate in India’s sectoral growth stories while maintaining portfolio diversification.
Written By: Dipangshu Kundu
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