Three sectoral, thematic fund categories have offered the highest returns in one-year horizon. These categories offered returns between 58% – 93% .
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PSU funds offered the highest return of around 93.26% in one year. There were five schemes in the category that completed one year in the market. CPSE ETF offered 104.81% gains, followed by Aditya Birla SL PSU Equity Fund which offered 95.64%.
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Infra funds follow suit
Infrastructure funds offered an average return of around 62.21% in one year. There were 18 schemes in the category that completed one year. HDFC Infrastructure Fund offered the highest return of 81.78%. Kotak Infra & Eco Reform Fund offered the lowest return of around 45.96%.
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Pharma funds offered an average return of around 58.11% in one year horizon. Around 10 pharma funds completed one year in the market. ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund offered the highest return of 63.57%. LIC MF Healthcare Fund offered the lowest return of 58.11%.
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Thematic or sector schemes invest most of their corpus in a particular sector, and the performance of schemes is based on performance of the sector. That is why thematic or sector funds are recommended only to investors with thorough knowledge about the sector.
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You should invest in these schemes only if you have a long investment horizon or have intimate knowledge about the sector to time the entry and exit in these schemes. Remember, every sector or theme can go out of fashion depending on the economic conditions. You should not make hasty decisions in those phases.
