US trade deal may reignite interest in thematic offerings

Manufacturing funds have been in limbo over the past year as global uncertainties and tariff wars hurt sentiment.

- SARBJEET K SEN

Over the one year ended October 20, 2025, these schemes lost 0.8 per cent on average. However, with reports of a possible trade deal with the United States (US) on better terms for India, the segment could see renewed investor interest.

“Manufacturing funds can be powerful wealth builders. They ride multiyear capex upcycles, China-plus-one, production-linked incentive (PLI) schemes, and consolidation that boosts pricing power. Small revenue upticks can translate into outsized profit growth via operating leverage. They will also benefit from formalisation, localisation of supply chains, and, in export niches, tailwinds from a competitive rupee,” says Bhalachandra Shinde, assistant fund manager, Motilal Oswal Asset Management Company (MOAMC).

“Investing in manufacturing funds offers exposure to one of the strongest structural growth stories in India, driven by policy incentives, supply-chain diversification, and rising exports,” says Ravi Kumar T V, founder, Gaining Ground Investment.