The Nifty India Manufacturing Index reflects the performance of India s manufacturing sector, comprising companies from Nifty indices. It is rebalanced semi-annually and offers diversification benefits. However, it may have a market cap bias and sector-specific risks.
Mutual funds focused on the manufacturing sector offer investment opportunities to align portfolios with India s growth narrative. These funds invest in sectors like automobiles, pharmaceuticals, technology, cement, petroleum products, and industrial products. However, diversification and risk assessment are crucial when investing in these funds. At present, there are only five schemes which predominantly invest in manufacturing stocks.