The sectors in which the mutual funds are investing can potentially give better returns in the future.
You can also take advantage of them by incorporating their chosen stocks into your portfolio.
However, funds do change sectors from time to time, so you need to keep an eye on them.
New Delhi. When the market trades in the range, the question arises as to which sectors are seeing growth and after that comes the question of which stocks are doing well. These questions are often on the minds of retail investors, but we also need to think about the sectors that mutual funds choose. This greatly helps retail investors in selecting sectors and stocks.
Talking about the current levels of Nifty, there is always a Bull vs Bear battle in the stock market. At this time also the bullishers are expecting the Nifty to touch the 18,000 level, but the bearers are waiting for the break of the 17,400 level. But before you understand all this, the simple way is for you to also understand which sectors and stocks mutual funds bet on. Because most fund houses bet on companies whose earnings are expected to grow continuously.
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Where are the funds investing money in 2022?
After the Kovid epidemic, the way new investors have come into the market, the attitude of investing has also changed. More data is now available than before and technically also fund managers are in a better position now. There have been many changes in the way funds are managed before and after Kovid.
Banking is the backbone of any economy. In India too, the banking sector is linked to GDP growth. After the rapid recovery of GDP in India, mutual funds still consider the banking sector as the first choice. Indian fund houses have major stakes in ICICI, HDFC, SBI, KOTAK MAHINDRA BANK and AXIS BANK.
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Software companies are also the first choice of investment funds due to the development and promotion of technology. There was not much impact on the margins of IT companies after the pandemic. However, at present, technology companies are under pressure due to the fear of recession in America and Europe. But due to the growing digital dominance, technology companies remain the first choice for long-term investment. First choice of large-cap and multi-cap funds is TCS, HCL, Tech Mahindra, Info Edge and Infosys. Fund houses whose first choice is technology companies include TATA MF, Franklin Templeton MF and PPFAS MF.
Finances are an important part of the common man’s life. If they invest in sound financial companies, they can earn good money in the long run. In the recent past, financial companies have been able to use technology to maintain their reach to a large number of people. If they invest in finance and fintech for a long time, they can make a lot of money. For some time now, mutual fund companies have invested heavily in companies such as Bajaj Finance, HDFC Ltd, Bajaj Finserv, Max Financial Services and SBI Life Insurance Company.
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After the Kovid epidemic, the pharmaceutical sector has seen the highest growth. A large amount of generic drugs from India have been exported to America and European countries. In this situation, there are many pharmaceutical companies in India which have USFDA recognition and there has been a huge growth in these companies.
Consumer durables (FMCG)
FMCG is generally considered a defensive sector. But there is a large population in India where these companies will still have an opportunity to grow further. Apart from cities, these companies are also spreading their feet in rural India. The first choice of mutual fund companies are Hindustan Unilever, Asian Paints, Nestle India and Tata Consumer Products. There are companies like this that have pricing power, and even after inflation, these companies have been able to maintain their margins.
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We cannot imagine our life without transportation. Today gasoline diesel and gas for transportation are an important part of our life. There is now a partial control over the price of petrol, diesel and gas in India, so the oil companies are now in a position to make a profit. Companies like Bharat Petroleum Corporation, Hindustan Petroleum Corporation, Indian Oil Corporation, Castrol India and Reliance Industries have become the first choice of mutual funds.
Now this sector has also become the first choice in terms of investment. In India, both government and private sector investment in the construction sector has increased, so there is significant growth in the cement sector.
Tags: Make money, Investment and profitability, Investment advice, Investment funds, Market actions
FIRST PUBLICATION: September 8, 2022, 09:00 IST