THEME PARTY
Business Today India|March 03, 2024
FUNDS, SECTORAL MUTUAL FUNDS AMONG EQUITY AND THEMATIC RECEIVED THE SECOND-HIGHEST INFLOWS OF 30,841 CRORE IN 2023, ACCOUNTING FOR 19% OF THE TOTAL. THE GOVERNMENT'S FOCUS ON PSUs AND INFRA DEVELOPMENT IS EXPECTED TO HELP SUSTAIN THIS MOMENTUM
RAHUL OBEROI
THEME PARTY

DUE TO THE combined impact of the government’s emphasis on public sector undertakings (PSUs), coupled with a thrust on infrastructure, sectoral mutual funds ended up receiving significant attention from investors last year.

This is evident from the fact that more than 19% of the funds invested in equity schemes were directed towards sectoral and thematic funds last year. These mutual fund schemes experienced an inflow of ₹30,841 crore, second only to small-cap mutual funds, which received a net inflow of ₹41,035 crore, or over 25% of the total equity inflows. Fund managers anticipate that sectoral funds will continue to attract robust flows, and sectors such as infrastructure, banking, housing, pharmaceuticals, and manufacturing appear promising for the next two to three years.

THE JOURNEY SO FAR

It is interesting to see that PSU funds outpaced other categories for the second straight year in 2023. On an average, mutual funds that zero in on public sector enterprises delivered 59.22% returns to investors last year and 26.51% in 2022. “The outperformance of the PSU space can be attributed to segments like PSU banks and defence,” says Vrijesh Kasera, Fund Manager at Mirae Asset Investment Managers (India). He adds that given the sharp run-up in both the segments, the valuations look expensive with respect to their historical averages. “While the rally may continue in the short-term, the earnings in both the segments will have to match up to justify the prevailing valuations.”

Among the top mutual funds in the PSU category, the net asset values (NAV) of Aditya Birla Sun Life PSU Equity Fund, Invesco India PSU Equity Fund, SBI PSU Fund and ICICI Prudential PSU Equity Fund gained somewhere between 55-62% in 2023.

Esta historia es de la edición March 03, 2024 de Business Today India.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición March 03, 2024 de Business Today India.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE BUSINESS TODAY INDIAVer todo
The EV Craze
Business Today India

The EV Craze

The country’s growing luxury car market is seeing a shift with environmentally-conscious consumers betting on electric vehicles as a sustainable travel option. Though just 6%, the share of EVs in the luxury segment is rising rapidly

time-read
5 minutos  |
November 10, 2024
The Storage Boom
Business Today India

The Storage Boom

Data centres are being built at a frenetic pace in india as companies scramble to meet the ballooning demand from mobile phone users and firms adopting al. Can the country’s energy infrastructure keep up?

time-read
8 minutos  |
November 10, 2024
India Beckons
Business Today India

India Beckons

Owing to rising incomes in India and overall wealth expansion, luxury brands are wooing the country like never before

time-read
4 minutos  |
November 10, 2024
The Pearls of The Sea
Business Today India

The Pearls of The Sea

Caviar, that rare food, is considered the epitome of fine dining. Here is everything that you need to know about it

time-read
4 minutos  |
November 10, 2024
66.Brand persona should define the core"
Business Today India

66.Brand persona should define the core"

I’d say this was a strategic pivot. We had an iconic brand, but had, over time, evolved into diversified lines of businesses that could no longer be represented within the confines of our ‘name’.

time-read
1 min  |
November 10, 2024
Unwind in Style
Business Today India

Unwind in Style

Here is acomprehensive list of top tech picks that help you unwind by blending perfection in performance with luxury

time-read
3 minutos  |
November 10, 2024
A Lifelong Affair with Inspiration
Business Today India

A Lifelong Affair with Inspiration

In my art journey, the diversity of my acquisitions mirrored the expanding horizons of my understanding of art

time-read
3 minutos  |
November 10, 2024
Make it Bubbly
Business Today India

Make it Bubbly

Champagne is much more than just a symbol of celebration and success. Know about its nuances beyond the bubbles

time-read
4 minutos  |
November 10, 2024
Palatial Splendour
Business Today India

Palatial Splendour

Buoyed by renewed demand, sales of the glitzy mansions of the ultra-rich are surging like never before. Real estate majors are looking to capitalise on this by launching luxury offerings in record numbers

time-read
7 minutos  |
November 10, 2024
Of Beaches and Cream
Business Today India

Of Beaches and Cream

GianChand Single Malt Whisky

time-read
1 min  |
November 10, 2024