Budget season is always expected to bring cheer for long term investors as economy get optimum liquidity into various themes of the country. Rural Sector, Consumer goods, infrastructure and capital infusion in Public sector banks always get the attention of the crowd. Budget FY20 is going to attain more limelight as the year will move through a nail-biting election season for most honorable chair of the country. Therefore, big reforms and entrepreneur’s friendly policies are going to deliver by the Modi-led-government to fuel the economy with a sight of retaining the command for more five years. Still, the market is likely to remain on the tenterhooks until the government comes forward with a lot of goodies for the market participants. So, investing in stocks could be a wrong bet for the typical traders, unlike the polished punters, should park their pocket cuts into Budget-led-Mutual Funds, which are most productive ones.
Reasons behind picking up following mutual funds:
- This was a chaotic activity to filter those mutual funds that fall under the category. Still, those ones are picked that are akin to the Budget theme.
- There prime focus is to invest in FMCG, fertilizers, infrastructure, banking and healthcare etc.
- These funds are also filtered on the basis of their performance in preceding years.
- These funds are also soaked through their future performance parameter.
Top 5 Mutual funds for investing in to gain from Election Budget Gifts:
- ICICI Prudential Infrastructure Fund: Long Term Wealth Creation by investing in equity/equity related securities of the companies belonging to the infrastructure theme is the investment objective of the company. Current NAV is 46.42. Top holdings of the fund are: NTPC, Bharti Airtel, Larsen and KNR Construction etc.
- L&T Infrastructure Fund: The scheme is ranked ‘Numero Uno’ in Sectorial category by CRISIL and unchanged by this quarter. Current NAV is 14.620. Top holdings of the fund are: Larsen, Reliance, Ramco Cement and Carborundum.
- Sundaram Rural and Consumption Fund: The fund is a dedicated vehicle to play rural theme that is expected to lead growth story of our country. The risk-o-meter of the fund is moderately high. Top holdings of the fund are: HUL, ITC, M&M, UPL and Britannia.
- Reliance Banking Fund: Investment objective of the scheme is to generate returns by parking funds in equity and equity related securities of banking companies and those who are engaged in similar activities. Top holdings of the fund are: ICICI Bank, HDFC Bank, SBI, Bank of Baroda, and Bajaj Finserv.
- UTI Healthcare Fund: The fund invests in equity and equity related securities of pharmaceutical and health care companies to achieve capital appreciation. Top holdings of the fund are: Sun Pharma, Lupin, Dr. Reddy’s Lab, IPCA Labs, Cadila Health care.