PGDBM BATCH VI2014
MODULE – II11-11-2014
PRESENTED BY ANUP TIWARI
ALOKET SETHMAYUR SRIVASTAVA
RAVIKANT MISHRAKUSHBOO JOUHARI
MOHIT SHUKLA
Objective
1. What is sectorial funds & Pros and cons ofsectorial funds.
2. What is investor profile & which profile bestsuited for sectorial funds.
3. In the current economic scenario which sectoris best in long term. We are going to suggesthealthcare and IT & ITeS sector.
Sectorial Funds
As the name implies sector of the economy, such as energy or utilities. Sector funds come in many different flavors and can vary substantially in market capitalization, investment objective (i.e. growth and/or income) and class of securities within the portfolio.
Pros of Investing in sector Funds
• Sector funds can provide diversification to a portfolio.
(For example, an analysis of your portfolio shows that you have
very little exposure to health care stocks, then a health care
sector fund can fill that gap and further diversify your
portfolio).
• Investors may look to sector funds as a way to make a big
profit over a short period of time.
Cons of Investing in sector Funds
• Sector funds are very concentrated in nature .
(When a sector of the market performs poorly, funds
that invest in that sector will also perform poorly.)
• Investors should be wary of sector fund fees.
(the portfolio manager is frequently buying and selling
securities for the portfolio. Frequent trading generates
commission costs, which detract from the portfolio’s
returns. Additionally, frequent trading may increase
the investor’s tax burden.)
1. Natural Resources Funds
2. Utility Funds
3. Real Estate Funds
4. Financial Funds
5. Healthcare Funds
6. Technology Funds
7. Communications Funds
8. Precious Metals Funds
etc.
Sector where you want to invest
Method For Drawing Up Investor Profile
Duration
How long do you want to invest for?
Returns – income or growth?
Do you want income or growth?
Liquidity
Do you need to get to your money easily?
Risk
What balance of risk and reward is right for you?
Types of Investors
Conservative investor- He is a defensive investor
Balanced investor- He is a growth investor
Aggressive investor- His objective is capital growth
Best suited profile for sectorial funds
Diversify Portfolio’s Investors Aggressive Investors Investors Who Have Knowledge Market &
Stock
Note:- We should not suggest fresher investors to invest in sectorial funds
In Current Economic Scenario Which
Sector Is Better For Long Term
Investment?
We suggest to investors to invest in
healthcare(Pharmaceuticals)
IT & ITeS sector
Healthcare sector Growth From 2008-2012
Current Economic Scenario Sector Fund would be
SECTOR FUNDS
RETURN in (%)
2nd yr 3rd yr 5th yr
Pharma & Healthcare
Reliance Pharma Fund (G) 34.8 29.9 26.7
SBI Pharma Fund (G) 39.9 36.2 28.2
UTI Pharma & Health (G) 35.1 27.8 24.5
FMCG
ICICI Pru FMCG Fund (G) 17.5 21.9 23.7
SBI FMCG Fund (G) --- --- ---
Banking & Finance
Reliance Banking Fund (G) 23.5 22.1 17.5
ICICI Pru Bkg & Fin Serv-RP(G) 28.1 27.5 18.3
GS Bank BeES --- 25.4 17.8
R*Shares Banking ETF 24.1 22.2 15.9
Technology
ICICI Pru Tech. Fund (G) NA 32.2 26.4
Franklin Infotech Fund (G) NA 20.6 19.2
Birla SL New Millennium (G) NA 21.8 14.7
DSP-BR Technology.Com -RP (G) NA 19.0 12.1
THANK YOU
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