Monday, 13 March 2017

3 Best Mutual Funds To Invest For Long Term Upon BJP Victory in UP

Posted by RaviKumar Nama
(Published on 13-Mar-2017)
A massive victory for Narendra Modi led BJP in recent UP elections is really a cheer to Stock Markets. Analysts are expecting this victory would give confidence to BJP's second term in the next Central elections which will be held in 2019. This means that the current policies would continue for next 5 - 7 year period. This unexpected land slide victory in UP would give positive indication towards carry out of reforms as well as the Government focus towards Infrastructure and Irrigation sectors. Because of the lack of majority in Rajya Sabha, many reforms are stuck in these sectors. Now, Government may get an edge in Rajya sabha over a period of time, and some of the reforms that are stuck may see light of the day in the coming days. Considering all these factors, I am suggesting 3 best Mutual funds to invest for long term. These 3 Mutual funds would yield better results than other funds in the respective sectors.



Fund Selection Criteria:


  1. Funds that are existing 5 years or more
  2. Funds that are from good Fund houses
  3. Funds that are from Infrastructure and Rural Irrigation sectors
  4. Funds that are giving consistent performance from the last 5 years
  5. Funds that are allowing SIP facility with minimum amount
  6. Funds that are relatively lower risk in their respective sectors

Who Can Invest Into These Funds:


  • Investors with High to Medium Risk appetite
  • Investors who can Invest through SIP approach
  • Investors who are ready to invest for long term goals
  • Investors who are looking higher returns 

3 Best Mutual Funds To Invest For Long Term Upon BJP Victory in UP

1. Franklin Build India:

The first sector that would benefit most from BJP's victory in UP is Infrastructure. Franklin Build India fund is one of the best Mutual fund in Infrastructure sector. This fund has been giving excellent and consistent performance from the last 5 years. As the atmosphere now is totally turned positive towards Infrastructure sector, this fund would yields fantastic returns in the coming years. The UP results clearly confirming the BJP Government's continuation in the next term also. Hence, Government would focus on Infrastructure and will announce many more projects in this sector in coming years.
Franklin Build India fund is a Infrastructure sector fund and has been giving consistent and fantastic performance since BJP Government formation. This fund has been giving 32.15% yieldings from the last 3 years. Top 5 sectors consists of Financial, Energy, Automobile, Communication and Engineering. The Investors who wanted to invest in a Sector or Thematic oriented funds can consider Franklin Build India and invest through SIP approach for 3 - 5 years.


2. Sundaram Rural India Fund:

BJP has given top priority for Rural and Irrigation developments and Modi has clearly emphasized Governments focus towards rural irrigation developments. Hence one can expect good yielding in the coming years from Sundaram Rural India Fund. This fund has already showing  consistent growth from the last 3 years. Because of good rain fall in last year, this fund has yielded a fantastic 41%. Major companies in its portfolio are ITC, Heritage Foods, UPL, M&M, Maruti Suzuki, Bayer CropScience etc. Top 5 sectors consist of  FMCG, Financial, Chemicals, Automobile and Construction. This year also India predicting Normal monsoons, hence this fund would continue its fantastic journey this year also. Risky investors can invest into this fund through SIP approach for long term goals (3 to 5 years).


3. Birla Sun Life India GenNext Fund:

Birla Sun Life India GenNext Fund is launched in Aug 2005. The scheme aims to invest in equity/ equity related instruments of companies that are expected to benefit from the rising consumption patterns in India, which in turn is getting fuelled by high disposable incomes of the young generation (Generation Next). Most of the companies in this Portfolio would benefit from Modi's 'Make in India' campaign and focus towards Infrastructure developments. Because of landslide victory of BJP in UP clearly indicating that BJP ruling would continue in the next term as well. Hence, we can expect good returns from this Mutual fund in the long term. Top sectors in this Mutual fund consist of Financial, FMCG, Automobile, Healthcare and Consumer Durable sectors. Top 5 companies are HDFC Bank, Maruti Suzuki, ITC, IndusInd Bank and Eicher Motors. The consistent growth from the last 5 years shows that this Fund would give you better results in the coming quarters. Investors who wanted to invest for long term with High to Medium risk appetite can invest into this fund.


Conclusion:

Sectoral funds are high risk in nature but would yield higher returns when you invest in the right time. The positive atmosphere prevailing in Infrastructure and Irrigation sectors, the above 3 sectoral funds are best funds in their respective sectors and can expect fantastic returns in the coming days. High risk investors can invest into these funds through SIP approach for long term.

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