Looking to invest in the next big wave of growth? Sector-specific equity funds, also known as sectoral funds, might be what you are looking for. As the name suggests, these funds invest in a specific sector of the economy, bringing you the prospect of tapping into industry-specific growth trends.
Growth-oriented industries like technology, renewable energy, healthcare, and infrastructure present you with tremendous opportunities to capitalize on. While you might notice impressive growth in several sectors, which fund can best suit your portfolio?
We have curated this list of the best sectoral funds for you to invest in 2025 in this blog.
Which Are The Top Sectors To Invest In 2025?
Sectoral funds are equity mutual funds that invest primarily in companies within a specific industry such as power, technology, healthcare, infrastructure, and renewable energy.
In all these sectors, recent years have witnessed consistent growth, thanks to innovation and government initiatives. Thus, you get an opportunity to benefit from targeted opportunities in high-potential areas.
However, sectoral funds also come with higher risk due to their narrow focus. The performance of these funds is closely tied to the economic health of the specific sector. That’s the reason investors need to choose sectoral funds managed by seasoned professionals.
Do you know that the average 3-year return from top sectoral funds stands at 19.91%? The secret to financial success lies in choosing the right funds. We have presented the top funds for you to invest in five different sectors below.
Best Sectoral funds to invest in 2025
Considering the industry trends and growth potential, we have shortlisted one mutual fund each from sectors like infrastructure, healthcare, manufacturing, technology, and power. Check out the best equity mutual funds to invest in 2024 from the top sectors.
- Quant Infrastructure Fund
The Quant Infrastructure Fund delivered an absolute return of 376.64% to investors in the last five years. If you’re planning to invest in the infrastructure sector, this fund is our top choice.
This fund offers exposure to companies thriving in this transformative space, from construction giants to logistics companies. With hundreds of smart city projects under development, this fund is a great choice for you willing to tap into India’s growing urbanization.
- DSP Healthcare Fund
The healthcare industry in India is experiencing unprecedented growth. With innovation and increased demand for quality care, this sector is likely to reward investors handsomely in the coming years.
The DSP Healthcare Fund invests in leading pharmaceutical companies, medical technology firms, and healthcare service providers. For a growth-oriented portfolio, you may consider investing in this fund.
- Bank of India Manufacturing & Infrastructure Fund
The Bank of India Manufacturing & Infrastructure Fund targets companies at the forefront of these sectors. As India pushes towards self-reliance and economic expansion, the manufacturing sector is set to grow.
From industrial manufacturers to infrastructure, the fund managers meticulously select stocks to bring you a compelling opportunity to benefit from the booming industrial sector in India.
- ICICI Prudential Technology Fund
Technology is one of the most promising sectors for long-term growth as it continues to reshape industries and lifestyles of consumers. The ICICI Prudential Technology Fund invests in top tech companies driving innovation in software, hardware, and digital transformation.
This fund brings you an opportunity to invest in companies dealing with AI, cloud computing, and fintech.
- Nippon India Power & Infra Fund
The Nippon India Power & Infra Fund invests in companies that address energy needs and infrastructure development.
With the power and infrastructure sectors booming and businesses embracing renewable energy on large scales, this fund allows investors to benefit from the evolving landscape.
Conclusion
With sectoral equity funds, you get a unique opportunity to invest in booming industries that are shaping the country’s economy. In this guide, we have listed the best equity mutual funds from five key sectors for you to choose from.
From infrastructure and healthcare to technology and renewable energy, these funds bring you the targeted growth prospects. As you brace up to invest in a specific sector, it’s imperative to choose the right funds.
