Energy & power based mutual funds gave an average return of 8.39% in the last one month, data crunching by ETMutualFunds showed. There were around four schemes in this category that have completed one month or existence in the market.
Energy & power funds are benchmarked against S&P BSE Oil & Gas Index, Nifty Infrastructure Fund, and Nifty Commodities - TRI which gave 13.63%, 22.95% and 20.93% respectively in five years. Pharma & healthcare funds are benchmarked against S&P BSE HealthCare - TRI, and NIFTY PHARMA - TRI which gave 20.75% and 16.51%, respectively.
Among these seven categories, three categories were sectoral funds. These three categories topped the return chart and offered more than 50% returns in FY24.
We considered all equity categories such as largecap, midcap, smallcap, large and mid cap, ELSS, multicap, flexicap, focused fund, value, contra, and sectoral/thematic fund categories. We also considered regular and growth options.
The energy sector holds promising prospects for long-term growth, particularly with the government’s increased focus. Investing in energy-focused mutual funds seems reasonable, but caution is advised, given that these funds are thematic and reliant on the cyclical movements within the sector.