The Mutual Fund industry in India is experiencing significant growth, particularly through Systematic Investment Plans (SIPs). According to the latest data from the Association of Mutual Funds in India (AMFI), there are now 8.40 crore SIP accounts, collecting a massive Rs 19,271 crore in March 2024. The figures highlight the increasing popularity of SIPs as a preferred investment vehicle among investors.
A deeper dive into the AMFI data shows an intriguing trend in the sectoral/thematic funds category. These funds, which focus on specific sectors or themes, now have a total net Asset Under Management (AUM) of Rs 2,97,358.13 crore, with a net inflow of Rs 7,917.72 crore in March 2024. This makes them the third-largest category by AUM, following Flexi Cap Funds (Rs 3,50,186.42 crore) and Large Cap Funds (Rs 3,14,154.57 crore).
Here’s a closer look at the best-performing sectoral/thematic funds for April 2024, along with their returns and investment breakdown:
| Sr No | Scheme Name | AuM (Cr) | April 2024 Returns |
1 Year Returns | 3 Years Returns |
| 1 | HDFC Defence Fund | 2248.41 | 15.11% | – | – |
| 2 | SBI PSU Fund | 1,875.84 | 11.32% | 95.45% | 42.70% |
| 3 | Quant Commodities Fund | 248.31 | 11.28% | – | – |
| 4 | LIC MF Infrastructure Fund | 225.40 | 10.28% | 70.68% | 34.29% |
| 5 | Franklin India Opportunities Fund | 2,950.35 | 9.99% | 75.84% | 29.00% |
| Returns data as on April 29, 2024 | |||||
The HDFC Defence Fund has seen outstanding performance, achieving a remarkable 15.11% return in April 2024. This fund invests 92.3% in domestic equities, with 4.18% in large-cap stocks, 17.4% in mid-cap stocks, and 29.97% in small-cap stocks.
The SBI PSU Fund delivered a strong 11.32% return in April 2024. It has 91.05% invested in domestic equities, with 39.26% in large-cap stocks, 25.88% in mid-cap stocks, and 17.91% in small-cap stocks. The fund has also shown consistent long-term growth, with 95.45% returns over the past year.
The Quant Commodities Fund achieved an impressive 11.28% return in April 2024. It has 81.7% investment in domestic equities, with a focus on small-cap stocks, and a smaller portion in large-cap and mid-cap stocks. It also holds 4.02% in government securities.
The LIC MF Infrastructure Fund posted a 10.28% return in April 2024. This fund has 91.88% invested in domestic equities, with a significant focus on small-cap stocks (53.11%), alongside mid-cap and large-cap stocks.
The Franklin India Opportunities Fund nearly reached double-digit returns, with 9.99% in April 2024. This fund has a balanced investment across large-cap, mid-cap, and small-cap stocks, showing steady performance across different timeframes.
These sectoral/thematic funds showcase the diverse opportunities available in the Indian Mutual Fund industry. The strong performance in April 2024 indicates that investors have a wide range of investment options, each with unique characteristics and growth potential. As the SIP market continues to expand, sectoral/thematic funds are becoming an increasingly attractive choice for investors seeking targeted growth.
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