Manufacturing Mutual Funds have gained significant investments, as the investors are looking to bet on India’s industrial growth and development. These funds focus on companies engaged in manufacturing activities, ranging from heavy industries to consumer goods production. Here are some of the prominent manufacturing funds available in India:
Axis India Manufacturing Fund
The Axis India Manufacturing Fund targets companies across various sectors, which are involved in manufacturing related services. As of March 2024, Axis India Manufacturing Fund manages assets worth INR 5,193 Crores. It has an expense ratio of 0.38%.
ICICI Prudential Manufacturing Fund
ICICI Prudential Manufacturing Fund has assets under management (AUM) totalling INR 4,842 Crores. This manufacturing fund aims to appreciate the capital by investing in stocks related to the manufacturing sector. It boasts an expense ratio of 0.69%.
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Kotak Manufacture In India Fund
The Kotak Manufacture In India Fund plans to invest in a diversified portfolio of companies related to the manufacturing sector in India. As of April 30, 2024, it has an expense ratio of 2.02%, which is slightly below the peers’ average.
Canara Robeco Manufacturing Fund
Canara Robeco Manufacturing Fund was launched in March 2024. This fund mainly focuses on equity investments in companies related with the manufacturing theme. It has AUM worth INR 1,242 Crores.
Aditya Birla Sun Life Manufacturing Equity Fund
Aditya Birla Sun Life Manufacturing Equity fund aims for a long-term capital appreciation by investing in equity and equity-related securities of manufacturing companies. As of April 30, 2024, it has an expense ratio of 2.33%.
Quant Manufacturing Fund
Quant Manufacturing Fund is a sectoral-themed equity fund with a focus on manufacturing-centric companies. This fund aims for long-term capital appreciation and steady returns. As of March 31, 2024, they manage assets worth INR 787 Crores and have an expense ratio of 0.75%.
Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund
Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund is an open-ended sectoral themed scheme similar to the Nifty500 Multicap India Manufacturing 50:30:20 Index. As of June 6, 2024, it has an AUM of INR 1,46,447 Crores and a NAV of INR 10.48. This fund is rated as “very high risk”. It has a minimum SIP investment of INR 100 and a minimum lump sum investment of INR 5,000.
Navi Nifty India Manufacturing Index Fund
Navi Nifty India Manufacturing Index Fund tracks and invests in the companies of the Nifty India Manufacturing Index. This fund has a total expense ratio of 0.22% for direct plans. It offers a cost-effective investment opportunity in the manufacturing sector.
HDFC Manufacturing Fund
HDFC Manufacturing Fund focuses on various companies related to the manufacturing sector. It aims to appreciate their long-term capital by investing at least 80% of its net assets in equity and equity-related instruments. It manages assets worth INR 10,340 Crores and is suitable for investors who are planning to invest in a horizon of more than three years.
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Performance of these funds
These manufacturing mutual funds have shown growth and potential in the industrial growth of India. They reflect belief in the government’s steps to boost the economy with initiatives like “Make in India.” These funds often benefit from government incentives and India’s manufacturing talent.
What investors should look into?
Investors looking into manufacturing funds should assess each fund’s investment strategy, portfolio composition, expense ratios and historical performance. They should carefully look into the companies which the funds have invested into. Thematic funds like these carry risks and are more volatile compared to the diversified equity funds.
About the Author
Mr Radhesh Tarang Shah, is a third-year management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
