GEM GAZE

August 2021

It is widely accepted that if you zero in on the fastest growing sector or sectors in which to invest, you are ahead of the crowd and can outperform the markets. In the long run, the path and hence performance of a sector is contingent upon the strength of the revenue growth and the demand for the products and services sold by the companies within a sector. The August 2021 GEMGAZE would provide some of the best sector mutual funds which can fetch phenomenal returns provided you get the timing right.

The consistent performance of all four funds in the July 2020 GEMGAZE is reflected in all the funds holding on to their esteemed position of GEM in the August 2021 GEMGAZE.  

Canara Robeco Infrastructure Fund Gem

Gaining on growth

Canara Robeco Infrastructure Fund, incorporated in December 2005, is a thematic fund completely focused on identifying growth-oriented companies within the infrastructure space. The fund, with an AUM of Rs 142 crore, aims at having concentrated holdings with 77.34% of the assets in the top three sectors Construction, Engineering and Finance. The fund has large market capitalization stocks at 48.04%. The scheme's fund manager avoids companies operating in segments that have high entry barriers. The fund benchmarks the performance of its portfolio against the S & P BSE India Infrastructure TRI. Canara Robeco Infrastructure has been among the better performers in its category. The fund’s one-year return is 71.94% as against the category average return of 76.22%. In the past five years, the scheme has given 11.07% returns, while its category has given 12.44% returns in the same period. In the past ten years, the fund has given 12.08% returns, while the category has given 10.96%. The expense ratio of the fund is high at 2.59% while the portfolio turnover ratio is 92%. The fund is managed by Mr. Shridatta Bhandwaldar and Mr. Vishal Mishra.

 SBI Consumption Opportunities Fund (erstwhile SBI Magnum FMCG Fund) Gem

The triumphant topper

In the past one year, the Rs 748 crore, SBI Consumption Opportunities Fund, incorporated in July 1999, is perched at the top with 26% of the assets in large caps. 73.46% of the assets are in the top three sectors FMCG, Services and Textiles. The expense ratio is high at 2.54% and the portfolio turnover ratio is 40%. Braving all odds, the one-year return of the fund is 64.97% as against the category average of 48.87%. Over the five and ten year periods, the fund posted 13.33% and 17.27% of CAGR, respectively as against the category average of 13.95% and 15.53% respectively. SBI Consumption Opportunities Fund is benchmarked against the NIFTY India Consumption TRI. Mr. Saurabh Pant has been managing the fund since June 2011.

ICICI Prudential Banking & Financial Services Fund Gem

Bountiful bottom line

ICICI Prudential Banking & Financial Services Fund, incorporated in August 2008, invests predominantly in large and midcap financial companies. 66.07% of the portfolio consists of large caps. This fund adopts a 'bottom-up' strategy, to identify and pick its investments across market capitalizations. The fund has not only outperformed its benchmark, the NIFTY Financial Services TRI but has also outperformed other banking sector funds. The current AUM of the fund is Rs 4,677 crores and the one-year return is 69.30% as against the category average return of 62.45%. Over the five and ten year periods, the fund posted 13.79% and 16.99% of CAGR, respectively as against the category average of 10.87% and 9.36% respectively. The expense ratio is 1.94% and the portfolio turnover ratio is 55%The fund is managed by Mr. Roshan Chutkey since January 2018.

 ICICI Prudential Technology Fund Gem

Opportunities in the offing

Consumers’ appetite for new technologies has been driving growth in the technology sector for years. This is providing good opportunities for technology companies. ICICI Prudential Technology Fund is a Rs 3494 crore technology fund, which invests in large technology oriented companies. It invests in companies listed in the BSE Teck. Its portfolio has 57.63% exposure to large cap companies. The fund seeks to invest in knowledge sectors like IT and IT Enabled Services, Media, Telecommunications, and others. The one-year return of the fund is 106.16% as against the category average of 86.09%. The five-year and ten-year returns of the fund are 28.5% and 23.88% as against the category average of 25.90% and 21.14% respectively. The fund is benchmarked against the S& P BSE IT TRI. The expense ratio of the fund is 2.26% while the portfolio turnover ratio is 67%. The fund is managed by Mr. Sankaran Naren since July 2017 and Vaibhav Dusad since May 2020. Incorporated in March 2000, this fund which is one of the oldest technology sector funds available in market has lived up to the expectation of investors over the past years and is one of the most popular in this category.