This is one of those rare months where all sectors have done well . If you had remained invested through the month, your mutual fund value would have risen . How about that ! Foreign Institutional Investors (FII) have invested 60358 crores. This is almost the same amount they withdrew in March 2020. Overall investment in India is close to 100 thousand crores.

1. In September 2020, we saw healthcare and technology funds doing well.
2. In October 2020, we saw banking and technology funds doing well.

There have been multiple stories about India being the fastest growing economy in 2021. There have been factors related to MSCI Index changes and therefore the flow of money towards Indian stocks has increased significantly.

Many have been wondering, there have been not much changes in ground, but markets have gone way ahead. Many analysts were / are anticipating a fall . However, markets are forward looking . It factors the growth that would happen and any change to the story , it corrects itself.

Winners

Nifty Bank was about 10% lower than YTD, thanks to the stupdendous rally in banking and financial services , it is close to January levels.

October 2020	Open	End	Return	High
Nifty Bank	24367.60	29609.05	21.50%	30197.85
Nifty Private Bank	13515.70	16473.10	21.88%	16793.85
Nifty PSU Bank	1277.35	1558.40	22.00%	1575.15

Some of these banking funds have :

1. Aditya Birla Sun Life Banking and Financial Services Fund - 25.67%
2. UTI Banking and Financial Services Fund 23.12%
3. Sundaram Financial Services Opportunities Fund - 22.41%

Infrastructure funds have done reasonably as the growth story is now broad-based :

1. Tata Infrastructure Fund (17.14%)
2. Aditya Birla Sun Life Infrastructure Fund (15.28%)
3. UTI-Transportation and Logistics Fund (14.78%)

Losers

Surprisingly there have been NO losers , all mutual funds have gained this month. This gives you the kind of broad based rally that has taken place in the stock market.

Disclaimer: Sectoral funds are quite risky and therefore based on your risk appetite make a wise decision.

Reference

1. FPI Monitor
2. Bloomberg Quint

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