Share Market: Sectoral funds are giving good returns at record highs, with power-infra there can be better earnings
Share Market: Analysts say that domestic institutional investors (DIIs) are on a buying spree in the market. Due to this, the investment gap between them and foreign institutional investors (FIIs) has barely come down to 9 percent. It is expected that DIIs will soon overtake FIIs.
Investors can ride the record rise, against this backdrop, on sectoral funds for good returns. Added to this, at this juncture, the economy is also doing well. Domestic institutional investor or DII, analysts said, is on a spending spree across the market. Needless to say, the gap between DII and FII in terms of investment has come down barely by 9% due to this. It is expected that sooner than later, the DIIs are going to outpace the FIIs. At the forefront of this growth juggernaut would no wonder be the core sectors.
Alok Agarwal of Bodavision Investors Services says that in such an exciting time, there is an opportunity to invest in theme-based sectoral funds. Investments in power, infrastructure, banking, financial services, innovation and consumption themes can see a robust growth in returns. Nippon India Power & Infra Fund has delivered 82.73% returns in one year. The fund house's pharma and consumption funds have also delivered 40.92% and 39.34% returns respectively.
If you look at category returns in major sector funds, infrastructure has delivered 46.05%, consumption funds 47%, pharma funds 47.06% and technology-based funds have delivered over 30% returns. Overall, sectoral funds have delivered 44.40% returns on investment in the last one year. By investing in these strategically designed funds, investors can not only benefit from sector-based growth but also contribute to India's strong economic progress.
