In the recent past, I recommended 3 categories of funds, viz., Diversified Large cap funds, Pharma funds and Infrastructure funds. This month also I recommend you to continue to invest in these sectors and specifically in the schemes that I had recommended earlier, in these sectors.
Let me recap the recommended schemes and why I recommended them:
Diversified Large cap sector : HDFC Top 200, Reliance Regular Savings and Birla Sunlife Frontline Equity
With the equity markets being volatile in nature and various segments of the market performing from time to time, diversified equity funds are evergreen funds without any bias to any particular theme. I believe that the Indian economy fundamentals continue to look good. Diversified funds are a good bet given that the fund managers have the mandate to take exposure to different segment of the market from time to time according to the market development. SIP is one the best methods of investing in the diversified equity funds. As the fund manager manages the sector allocation, we just need to ensure that we are disciplined and continue buying systematically
Pharmaceutical sector : Reliance Pharma
Going forward, I expect major pharma players to clock 16-18% growth in domestic formulations on account of capacity additions in the last few years and rapid sales force expansion to tap ~65% of the Indian population, which still does not have access to proper medication. What this means is that its time for you to invest in funds that look at the pharmaceutical sector.
Infrastructure sector : ICICI Prudential Infra, UTI Infrastructure and Reliance Infrastructure
The recession is behind us and the growth story is poised on the spring board. The fact that within this sector, there are such a sizeable number of direct and ancillary companies that picking the choicest would mean that a gem has been identified. This also means that a Fund Manager can really choose from a wide basket and therefore make a meaningful selection.
Should you wish to purchase any of these funds right away, just mail contact me thru email or on my mobile number.
When you invest in a mutual fund scheme, please do not panic because of short term market volatility and sell or switch the very next month. This immediately implies that mutual fund investments must always be made with a long horizon in mind and that the investor who is disciplined, gets rewarded the most. Even with the long term horizon it is important to keep on reviewing periodically.