Best bets of 2017 are now bleeding

With falling share prices many mutual fund schemes have turned red. Post the Union Budget of 2018 the market volatility has increased. In the last couple of years, infrastructure stocks and banking stocks remained the best choice of various mutual fund schemes. These infrastructure funds (Sector funds) registered one of the best returns among sectoral mutual fund schemes.
 
The infrastructure theme has enriched returns of the investors in the last one year till January 15, 2018. Around 18 infrastructure schemes which have completed 3 years have given an average return of 42.5 per cent. But post Union budget, the market volatility has dragged the returns of these schemes. These funds bled like nothing in the past 2 months which has turned the cumulative 3 months returns of these schemes red.
 
The category of equity infrastructure schemes on an average has given negative return of -11.42 per cent in the past three months. This clearly indicates the worsening situation of these schemes, all the 18 schemes have given a negative return in the past 3 months. Schemes like BOI AXA Manufacturing & Infrastructure Fund - Direct Plan, Escorts Infrastructure Fund - Direct Plan, LIC MF Infrastructure Fund - Direct Plan and Taurus Infrastructure Fund - Direct Plan have managed to outperform the category, but still registered negative returns.
 
With the current market volatility, it is clear that entering into the thematic funds will not be a good game. Investors should be aware of all the aspects of these funds. At the same time the investors who have parked money in these funds should not panic at all. The increased government spending in infrastructure sector and road networks bodes well for the sector in a longer run. So stay invested with these schemes for the longer run as these funds have the potential to grow in say 3 to 5 year period.