Page 54 - Banking Finance September 2024

ARTICLE

2. Healthcare Sector Fund five-year average annual return of 14%. The fund's
The healthcare sector has gained significant attention, emphasis on companies with strong ESG practices,
especially in the wake of the COVID-19 pandemic. such as renewable energy firms and companies with
A prominent healthcare-focused mutual fund in India robust corporate governance, has resonated with
has capitalized on the increasing demand for investors seeking long-term, sustainable growth.
healthcare services, pharmaceuticals, and
biotechnology. The fund has invested in companies Conclusion
across the healthcare value chain, from hospitals and Thematic and sectoral funds offer investors the
diagnostic centers to pharmaceutical giants and opportunity to align their portfolios with specific economic
biotech firms. trends, sectors, or themes. While these funds come with
Performance Example: This healthcare fund saw higher risks due to their concentrated exposure, they also
a significant uptick in returns during the pandemic, offer the potential for significant returns if the chosen
with a three-year average annual return of 18%. The theme or sector performs well. Investors considering
fund's focus on companies involved in vaccine thematic and sectoral funds should carefully assess their
development, diagnostics, and digital health solutions risk tolerance, investment horizon, and conviction in the
has been a key driver of its performance. theme or sector before investing.

As the Indian economy continues to evolve, thematic and
3. ESG (Environmental, Social, and Governance)
sectoral funds are likely to play an increasingly important
Fund
role in the mutual fund landscape. With the right strategy
ESG investing has gained traction globally, and India
and careful selection, these funds can provide investors
is no exception. ESG funds focus on companies that
with the opportunity to capitalize on emerging trends and
adhere to high standards of environmental
sectors that have the potential to outperform the broader
sustainability, social responsibility, and corporate
market.
governance. A successful ESG-focused mutual fund
in India has attracted investors who prioritize ethical By understanding the benefits, risks, and differences I
and sustainable investing. between thematic and diversified funds, investors can
Performance Example: The ESG fund has make informed decisions that align with their financial
outperformed many traditional equity funds, with a goals and risk appetite.

Franklin Templeton MF launches debt fund

Franklin Templeton Mutual Fund has launched ‘Franklin India Medium to Long Duration Fund’, an open-ended debt
fund that invests in bonds, debentures, certificates of deposit, commercial papers, treasury bills and government
securities. The fund investment holding period is between 4 to 7 years.
In a press release, Chandni Gupta, VP and Portfolio Manager, India Fixed Income, Franklin Templeton Mutual Fund,
said, “The fund will be dynamically managed, allowing it to adjust its duration exposure in response to changing
macro environment and it may be an ideal investment option for investors looking to deploy money in fixed income
funds as a part of their strategic investment allocation.”
Anuj Tagra, VP and Portfolio Manager, India Fixed Income, Franklin Templeton Mutual Fund, said, “We foresee ro-
bust domestic economic growth with a shallow rate cut cycle leading to a steeper yield curve. The fund aims to
generate accrual income while opportunistically managing duration risk to deliver superior risk-adjusted returns.”
Avinash Satwalekar, President, Franklin Templeton Mutual Fund–India, said, " The fund caters to investors looking
for a product that can adapt to market cycles and invest in quality debt instruments.”

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