This Sectoral Fund SIP Has Given Good Returns On Long Term Investment; Check Details

Sectoral funds are appropriate for you if you are an aggressive investor prepared to assume a larger risk in exchange for the potential to generate massive gains. Because these funds invest in securities from a single industry, the risk of concentration is higher. This sectoral fund from the BNP Paribas Mutual Fund has given promising SIP and lump sum returns on investment of 3 and 5 years.

BNP Paribas India Consumption Fund - Direct Plan-Growth

NAV	Fund Size	Expense Ratio
₹19.96	₹ 875.04 Cr	0.80%

NAV as on 18 February 2022

It is a small fund of Sectoral category, launched on 7 September 2018. BNP Paribas India Consumption Fund Direct-Growth scheme has annualized return performance in last 1 year is 16.06%. In the last 3 years, the fund has given 91.42% absolute returns and 99.28% absolute returns since the launch of the scheme. BNP Paribas India Consumption Fund Direct-Growth has Rs 875 Cr worth of AUM as of 31 January 2022. The fund's expense ratio is less than what most other Thematic-Consumption funds charge. You can start SIP with a minimum investment of Rs 500. Currently, the fund is managed by the Karthikraj Lakshmanan, Mayank Prakash, and Chockalingam Narayanan. 

The ability of the BNP Paribas India Consumption Fund Direct-Growth plan to provide consistent returns is comparable to that of other funds in its category. It has an above-average capacity to control losses in a sinking market. Investors that have a strong understanding of macro trends and like to make selected bets for greater returns than other Equity funds can consider investing in the fund. However, there is no guarantee that the Scheme's investing goals will be met. Returns are not guaranteed or indicated by the Scheme.

The Scheme's principal investment goal is to provide capital appreciation and long-term growth prospects by investing in firms that are likely to gain from offering products and services to India's expanding consumption requirements, which are being fueled by high disposable income. The Scheme also invests in debt and money market assets to produce revenue. 

Absolute and Annualized Returns

Lump Sum Investment Returns

Period Invested for	Absolute Returns	Annualised Returns
1 Year	16.06%	16.06%
2 Year	42.53%	19.36%
3 Year	91.42%	24.14%
Since Inception	99.56%	22.16%

SIP Investment Returns

Period Invested for	Absolute Returns	Annualised Returns
1 Year	6.01%	11.23%
2 Year	29.39%	26.83%
3 Year	42.34%	24.24%

Portfolio

The fund is invested in Indian equities to the tune of 92.43%, with 46.05% in big-cap stocks, 17.92 % in mid-cap stocks, and 14.12% in small-cap stocks. The majority of the money in the fund is invested in the financial, FMCG, services, automotive, and consumer durables sectors. In comparison to other funds in the category, it has less exposure to the financial and FMCG industries. ICICI Bank Ltd., Bharti Airtel Ltd., HDFC Bank Ltd., ITC Ltd., and Hindustan Unilever Ltd. are the fund's top five holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from MoneyControl. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.