Table Of Content
- Our Investment Strategy for Manufacturing Sector focused Mutual Funds
- What do you invest in with Atmanirbhar Bharat Mutual Funds?
- Atmanirbhar Bharat Stack: Pros and Cons
- Atmanirbhar Bharat: Annualised past returns
- Who should invest in Atmanirbhar Bharat?
Quick Summary
Participate in India's efforts at becoming self reliant. Invest in ''Atmanirbhar Bharat'' a mutual fund portfolio that invests in companies engaged in manufacturing activities along with following a business cycles-based investing theme giving you an opportunity for wealth creation alongside the growing Indian economy.
The "Atmanirbhar Bharat" portfolio by Stack Wealth allows you to gain exposure to businesses that play a major role in making India self-reliant which is essentially the manufacturing sectors.
The audacious and ambitious Atmanirbhar Bharat initiative aims to make India self-sufficient in important areas. Although it is a long-term plan, it could significantly impact the Indian economy. The project is beginning to provide some encouraging outcomes already. For instance, in an effort to support homegrown manufacturing, the government has unveiled a variety of initiatives, which have already increased investment and output. Additionally, the government has implemented measures to lessen India's reliance on imports, which is saving foreign cash.
Our Investment Strategy for Atmanirbhar Bharat Portfolio
Investments in this portfolio are made in a range of manufacturing industries, including those focused on exports, domestic consumption, and capital expenditure manufacturing. It can invest in small, medium, and large-cap companies because it is sector- and market-agnostic. The portfolio may adopt aggressive positions in particular manufacturing sub-themes based on the goals of the investment and the state of the economy.
- The manufacturing topic is divided into subthemes and takes a market-cap and sector-agnostic approach.
- Invest in industry leaders or businesses that are gaining from sectoral tailwinds during business and economic upturns.
- Seize unique opportunities: Find large-cap stocks that have been undervalued for non-fundamental reasons.
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What do you invest in with Atmanirbhar Bharat ?
- Mostly stocks and securities linked to stocks of businesses involved in manufacturing.
- Businesses that apply Production Linked Incentive Plans and the China +1 strategy.
- Defense and cyclical stocks are contingent upon the state of the economy and business cycle.
- Automobiles and auto accessories, healthcare & pharmaceuticals, capital goods, chemicals, and metals.
Atmanirbhar Bharat : Pros and Cons
Benefits
- Funds for manufacturing can help with diversification.
- A substantial and expanding economic sector.
- Most manufacturing funds are overseen by qualified experts.
Drawbacks
- The manufacturing industry is not always stable.
- Putting money into a manufacturing fund carries some risk.
- Effects of national and international macro factors.
Atmanirbhar Bharat: Annualised past returns
- The majority of funds that target the industrial sector have outperformed benchmark indices during the last three years. A benchmark for the fund is the NIFTY India Manufacturing TRI.
- Through investments in the manufacturing sector and a focus on riding business cycles through sector and stock allocation at various phases of cycles, the Atmanirbhar Bharat portfolio seeks to produce long-term capital appreciation.
- It has a very high risk rating.
- Benchmark: NIFTY 500- TRI
Want to know more?
Talk to our advisory team.
They will be happy to help you plan and manage your investments.
Talk to an expertWho should invest with the Atmanirbhar Bharat Stack ?
If you are a long-term investor hoping to gain capital appreciation through manufacturing investments, the Atmanirbhar Bharat portfolio is an excellent fit. The portfolio is handled by seasoned experts and is diversified across several industrial sub-themes and sectors. The portfolio is intended for individuals with a high tolerance for risk who are wanting to invest for a long time—at least five years. It is also exposed to market volatility. A fundamental knowledge of the manufacturing industry and the variables influencing its performance is a must for investors.
- This is ideal for the age group of 18 years upto 40 years
- This is for investors who delve in aggressive risk investing
- Investment horizon of 5+ years
- You can expect long term capital appreciation
- This is ideal for investors with the financial goals of long term wealth growth and generational wealth
FAQs
1. What are manufacturing sector mutual funds?
Manufacturing sector mutual funds are investment vehicles that pool money from investors and invest primarily in companies involved in various manufacturing activities, such as automobiles, textiles, pharmaceuticals, and capital goods. By investing in a sector-specific fund, you gain exposure to the growth potential of the entire manufacturing sector without the need to pick individual stocks.
2. Why invest in manufacturing sector mutual funds in India?
India's manufacturing sector is projected to be one of the fastest-growing in the world, driven by factors like government initiatives like "Make in India" and rising domestic demand. Investing in manufacturing sector mutual funds can offer you:
- Potential for high returns: The manufacturing sector has the potential to outperform the broader market in periods of economic growth.
- Diversification: Investing in a mutual fund provides instant diversification across various companies within the sector, mitigating risks associated with individual stocks.
- Professional management: Experienced fund managers actively research and select stocks, taking the burden of stock selection off your shoulders.
3. What are the risks of investing in manufacturing sector mutual funds?
Like any investment, manufacturing sector mutual funds come with their own set of risks:
- Sector-specific risks: The performance of the fund is directly tied to the performance of the manufacturing sector. If the sector faces headwinds, the fund's returns can suffer.
- Volatility: Manufacturing stocks can be more volatile than stocks from other sectors due to their sensitivity to economic cycles and global events.
- Liquidity risk: Some manufacturing sector funds may be less liquid, meaning it might take longer to buy or sell your units.
