gemini suggestion, picking quant small cap and motilal midcap for next 3 years, considering for last 3 years.
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predic of future, also taking reference of last 3 years growth, which mutual fund sectors will be having growth for next 3 years, in nse listed mutualfunds? why?top 10 list reaons?
satisfying above criteria, suggest top 10 mutual funds, predicting growth %?While it's impossible to predict exact growth percentages for mutual funds in the future, we can identify top-performing funds within the high-growth potential sectors mentioned earlier, based on their historical 3-year Compound Annual Growth Rate (CAGR) as of July 2025. This gives an indication of their past performance and how they've capitalized on sector trends.
Important Considerations:
Past performance is not indicative of future results. Market conditions can change rapidly.
Sectoral funds are inherently riskier than diversified funds due to their concentration.
Growth percentages are highly dynamic and change daily. The numbers below are based on recent available data and are illustrative.
This list is for informational purposes only and does not constitute investment advice. Always consult a financial advisor and conduct thorough due diligence before investing.
Direct Plan - Growth Option: For individual investors, the "Direct Plan - Growth" option of a mutual fund generally offers lower expense ratios and allows for compounding of returns without payouts.
Here are 10 mutual funds from the identified high-growth potential sectors, along with their approximate 3-year CAGR (as of recent data):
Top 10 Mutual Funds (Based on Past Performance & Future Sector Potential - as of July 2025)
1. SBI PSU Fund - Direct Plan (Growth)
Sector: PSU
Approx. 3-Year CAGR: ~39.09%
Reason for Potential Growth: Continued government focus on reforms, divestment, and improving operational efficiency of Public Sector Undertakings. Strategic importance of PSUs in core sectors like banking, energy, and infrastructure.
2. ICICI Prudential Infrastructure Fund - Direct Plan (Growth)
Sector: Infrastructure
Approx. 3-Year CAGR: ~33.95%
Reason for Potential Growth: Massive government capital expenditure, "Make in India" initiatives, urbanization, and private sector participation driving growth in construction, capital goods, and allied industries.
3. Quant Small Cap Fund - Direct Plan (Growth)
Sector: Small Cap (broad market exposure, but often includes high-growth small manufacturing, tech, and other companies)
Approx. 3-Year CAGR: ~30.61% - 31.86%
Reason for Potential Growth: India's economic growth often benefits smaller companies first. Their ability to grow faster from a smaller base, coupled with increasing formalization of the economy, presents significant opportunities.
4. Motilal Oswal Midcap Fund - Direct Plan (Growth)
Sector: Mid Cap (often a sweet spot between large-cap stability and small-cap growth potential)
Approx. 3-Year CAGR: ~35.39% - 34.66%
Reason for Potential Growth: Mid-cap companies are often established businesses with proven models, poised for significant expansion as the economy grows, and can offer a good balance of growth and stability compared to small caps.
5. SBI Healthcare Opportunities Fund - Direct Plan (Growth)
Sector: Healthcare & Pharmaceuticals
Approx. 3-Year CAGR: ~24.85% - 23.25%
Reason for Potential Growth: Increasing healthcare expenditure, strong pharmaceutical exports, focus on medical tourism, and a growing aging population will sustain demand.
6. Nippon India Banking & Financial Services Fund - Direct Plan (Growth)
Sector: Financial Services (Banking & Fintech)
Approx. 3-Year CAGR: ~24.89%
Reason for Potential Growth: Robust credit growth, digital transformation in financial services (UPI, fintech innovation), improving asset quality of banks, and overall economic expansion.
7. Tata Digital India Fund - Direct Plan (Growth)
Sector: Technology & Digital Services
Approx. 3-Year CAGR: ~13.18% (note: recent performance has seen some correction, but long-term potential remains strong)
Reason for Potential Growth: Continued digital transformation across industries, increasing adoption of AI and cloud technologies, government's digital India push, and India's strong position as an IT services hub. The recent dip might offer a better entry point for long-term investors.
8. Nippon India Power & Infrastructure Fund - Direct Plan (Growth)
Sector: Renewable Energy & Infrastructure
Approx. 3-Year CAGR: ~34.58%
Reason for Potential Growth: India's ambitious renewable energy targets, growing EV ecosystem, and significant investments in power generation and transmission infrastructure.
9. HDFC Manufacturing Fund - Direct Plan (Growth)
Sector: Manufacturing & Capital Goods
Approx. 3-Year CAGR: Data not easily available for 3-year CAGR for this specific fund but manufacturing sector itself is a strong theme. The fund was recently launched (May 2024), so 3-year data isn't relevant. However, its thematic alignment is strong.
Reason for Potential Growth: PLI schemes, "Make in India" initiative, efforts to boost domestic manufacturing and exports, and global supply chain diversification.
10. ICICI Prudential Commodities Fund - Direct Plan (Growth)
Sector: Commodities (can include chemicals, metals, energy)
Approx. 3-Year CAGR: ~33.00%
Reason for Potential Growth: This fund invests in various commodities-related sectors, including chemicals. The specialty chemicals sector has strong tailwinds from global supply chain shifts and domestic demand. While not purely a "chemicals" fund, it offers exposure to this and other cyclical sectors that could benefit from economic growth.
Important Reminders for Investors:
Risk Profile: Sectoral funds are highly volatile. Only invest a small portion of your portfolio in them if your risk appetite is high.
Diversification: Always maintain a diversified portfolio across different asset classes and fund categories (e.g., large-cap, flexi-cap, debt, gold) to mitigate risk.
Investment Horizon: These sectors are best suited for long-term investors (5+ years) who can withstand short-term market fluctuations.
Expert Advice: It is highly recommended to consult a SEBI-registered financial advisor to align your investments with your personal financial goals, risk tolerance, and investment horizon.
Research: Always research the fund's portfolio, fund manager's experience, expense ratio, and exit load before investing.
The predicted growth percentages are speculative and purely based on the strong underlying themes and past performance. Actual returns may vary significantly.
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