Portfolio Management Services (PMS) fund managers have been allocating a significant portion of their investments to four key sectors—financial services, capital goods, healthcare, and auto. Together, these sectors account for almost 50% of the total assets under management as of August 31. These sectors are viewed as high-growth opportunities, especially for those involved in online mutual fund investment. Here’s a breakdown of these sectors and why they’re so attractive to PMS fund managers.
The financial services sector takes the lead
The financial services sector leads the way, comprising 22.6% of PMS investments. This includes private and public sector banks, non-banking financial companies (NBFCs), and fintech companies. Despite some challenges like slower credit growth and margin compression, the sector remains a favourite for fund managers due to its potential for long-term growth. Private banks, in particular, are performing well with strong asset quality and lower non-performing assets (NPAs). For those exploring online mutual fund investment, financial services offer steady returns and robust growth potential.
The capital goods sector is boosted by government spending
The capital goods sector follows closely, holding 12% of PMS assets. The sector, which includes industries like manufacturing and construction, benefits from the Indian government’s focus on infrastructure development and increased capital expenditure (CAPEX). As corporate profits rise and the Reserve Bank of India (RBI) considers lowering interest rates, this sector is expected to witness further growth.
Those interested in online mutual fund investment can capitalise on the long-term potential of capital goods, which is essential for a developing economy like India.
Healthcare sector is growing steadily
Healthcare makes up 8.7% of PMS investments. This sector has gained momentum due to increased demand for medical services, rising chronic diseases, and medical tourism. India’s affordable healthcare services have made it a global leader in medical tourism, and the growth of insurance penetration further boosts the sector.
With these trends in place, online mutual fund investment in healthcare can offer solid returns, particularly for long-term investors who believe in the sector’s growth potential.
Auto sector benefits from rising demand
Lastly, the auto sector holds 6.2% of PMS investments. The sector has seen a revival thanks to increasing consumer demand, stable raw material prices, and new premium vehicle launches. The government's "Make in India" initiative has also bolstered the auto industry, positioning India as a manufacturing hub.
Fund managers are optimistic about this sector's export potential and growing domestic consumption, making it an appealing option for those considering online mutual fund investment in high-demand industries.
With nearly 50% of their funds allocated to these four sectors, PMS managers are focusing on industries that promise long-term growth and stability. Whether you're looking to diversify or target specific sectors for online mutual fund investment, financial services, capital goods, healthcare, and auto are excellent starting points.
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