Published Jun 22, 2026 4 Min Read

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Introduction

Manufacturing mutual funds are thematic equity funds that focus on companies engaged in manufacturing activities. These funds give you exposure to sectors such as industrials, engineering, capital goods, automobiles, and related businesses.

  • Manufacturing sector mutual funds mainly invest in manufacturing-focused companies.
  • These funds are classified as thematic equity funds and carry market-linked risk.
  • You can invest through SIP or lumpsum modes.
  • SIP investments start from Rs. 100 per month on the Bajaj Broking website.
  • KYC is mandatory before investing, as required by SEBI regulations.
  • Investors can choose from 4,000+ mutual fund schemes across equity, debt, hybrid, ELSS, thematic categories, and NFOs.

You can start your mutual fund investment journey on the Bajaj Broking website by completing KYC, comparing schemes, and investing through SIP or lumpsum based on your financial goals.

What are manufacturing sector mutual funds?

Manufacturing sector mutual funds are thematic equity funds that invest primarily in companies involved in manufacturing goods. These may include businesses from industrial manufacturing, engineering, capital goods, automotive, chemicals, and related sectors.

Unlike diversified equity funds, these schemes focus on a specific theme. Their performance depends largely on the growth and profitability of manufacturing-related industries.

FeatureDetails
Fund categoryThematic equity fund
Main investment focusManufacturing-related companies
Risk levelUsually High to Very High on the SEBI riskometer
Suitable forInvestors seeking sector-specific exposure

How do manufacturing sector mutual funds work?

Manufacturing sector mutual funds invest your money in a portfolio of manufacturing-focused companies. The entire investment process can be completed online after KYC verification.

  1. Complete your KYC using valid identity and address documents, as required by SEBI.
  2. Create your investment account and access the mutual fund section.
  3. Compare manufacturing sector mutual funds based on investment objective, portfolio allocation, and risk level.
  4. Select an investment mode—SIP or lumpsum—based on your financial plan.
  5. Invest the chosen amount and receive mutual fund units based on the applicable NAV.
  6. Track your holdings through Dashboard, Portfolio, Orders, and MF Profile tools available on the Bajaj Broking website.

List of manufacturing mutual funds in India

Several AMCs offer manufacturing-focused mutual fund schemes. The availability of schemes may change over time.

Fund categoryInvestment focusRisk levelSuitable for
Manufacturing thematic fundsManufacturing companiesHigh to Very HighLong-term investors
Industrial sector fundsIndustrial businessesHigh to Very HighGrowth-focused investors
Capital goods-oriented fundsCapital goods companiesHigh to Very HighInvestors seeking sector exposure

Before investing, review the scheme documents issued by the respective AMC.

Why do investors choose manufacturing mutual funds?

Manufacturing mutual funds can help you participate in the growth of India's manufacturing sector. They offer targeted exposure to a specific economic theme.

Key benefits include:

  • Exposure to manufacturing-led economic growth.
  • Professional fund management by the respective AMC.
  • Diversification within the manufacturing theme.
  • Investment through SIP or lumpsum.
  • Potential for long-term capital appreciation.

These funds may benefit from policy support, infrastructure development, and increased industrial activity.

What are the risks of manufacturing mutual funds?

Manufacturing mutual funds carry higher concentration risk than diversified equity funds. Their performance depends heavily on the manufacturing sector.

Common risks include:

  • Sector concentration risk.
  • Economic slowdown risk.
  • Market volatility.
  • Regulatory and policy changes.
  • Global supply chain disruptions.

Under the SEBI-mandated riskometer, many manufacturing sector mutual funds may fall in the High or Very High risk categories. You should evaluate your risk tolerance before investing.

How are manufacturing mutual funds taxed?

Manufacturing mutual funds are generally taxed as equity-oriented mutual funds if they meet applicable regulatory requirements.

Tax aspectDetails
Capital gains typeShort-term or long-term capital gains
Tax treatmentDepends on holding period and prevailing tax rules
Dividend taxationTaxed according to applicable tax regulations
Applicable rulesSubject to current income tax provisions

Tax rules can change over time. You may consider consulting a qualified tax professional for guidance.

Who should invest in manufacturing mutual funds?

Manufacturing mutual funds may suit you if:

  • You believe in the long-term growth of India's manufacturing sector.
  • You can tolerate High or Very High market risk.
  • You have a long investment horizon.
  • You want thematic exposure in your portfolio.
  • You already have a diversified investment base.

These funds may not suit investors seeking stable returns or low-risk investments.

Conclusion

Manufacturing mutual funds provide focused exposure to companies involved in manufacturing activities. While they offer growth potential linked to industrial development, they also carry sector-specific risks.

Before investing, assess your financial goals, risk appetite, and investment horizon. On the Bajaj Broking website, you can compare manufacturing sector mutual funds, complete KYC, and start investing through SIPs from Rs. 100 per month or through lumpsum investments.

Frequently asked questions

What are examples of manufacturing mutual funds in India?

Manufacturing mutual funds are thematic equity schemes that invest primarily in manufacturing-related companies. Examples include manufacturing-focused and industrial-themed mutual funds offered by different AMCs. Before choosing among manufacturing mutual funds, review the investment objective, portfolio allocation, and SEBI-mandated riskometer. You can compare manufacturing sector mutual funds on the Bajaj Broking website.

Are manufacturing mutual funds high-risk investments?

Yes. Manufacturing mutual funds are generally considered high-risk investments because they concentrate on a single sector or theme. Under the SEBI riskometer framework, many such schemes may be classified as High or Very High risk. These funds are usually more suitable if you have a long investment horizon and can tolerate market volatility.

Can I invest in manufacturing mutual funds via SIP?

Yes. SIP is an investment method that allows you to invest a fixed amount at regular intervals into a manufacturing mutual fund scheme. On the Bajaj Broking website, SIP investments can start from Rs. 100 per month for eligible schemes. You can also choose a lumpsum investment option if it better suits your financial plan.

What is the minimum investment in manufacturing mutual funds?

The minimum investment amount varies by scheme and AMC. However, SIP investments can start from Rs. 100 per month on the Bajaj Broking website for eligible mutual fund schemes. Before investing, you must complete KYC, which is mandatory under SEBI regulations.

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