Technology sector funds delivered the highest return in December 2020 at 11.74%.
Over a one-year period, tech funds have delivered the second-highest return at 56.85%, trailing pharma funds which posted 67.19% return during the same period. Tech and pharma have been the biggest beneficiaries in the COVID-19 era.
Consumption thematic fund category delivered the second highest (8.76%) return in December 2020. These funds invest a minimum of 80% of net assets in sectors like textiles, services, telecom, automobile, media/entertainment, construction, etc. to benefit from the consumption boom.
Financial services sector funds category delivered the lowest return (5.46%) among all categories of equity funds in December 2020.
News of an impending vaccine for Corona has boosted market sentiment around the world.
Record buying by foreign institutional investors has helped fuel the rally in Indian markets. The Sensex has gained 7% in December 2020 and is currently trading at its all-time high. The market is up 87% so far since its March 2020 low.
Here’s a look at the performance of different categories of equity funds in December 2020.
