Compelling Story

Your special story on sectoral funds was quite compelling. However, I have faced good amount of loss investing in it. Do you still feel sectoral funds are a worthy investment consideration? - Piyush Sharma

Editor Responds : As there is no diversification to lower the amount of risk taken, investing in sectoral funds is a risky endeavour. Sector rotation does occur and thus no one sector can be the best performer for a prolonged period of time. As a result, we believe sectoral funds are more tactical than strategic. As a result, before investing in sectoral funds, we strongly advise you not to combine them with your portfolio that is dedicated to a certain objective. Keep them in your satellite portfolio, in fact. Investing in sectoral funds also necessitates a thorough grasp of a particular sector, the overall market, the domestic economy and the global economy.