Period and Duration of Investment: Sector funds are for medium to long term. … Hence these funds are can be riskier than other mutual funds. High Returns: If a sector is expected to perform well over a period of time, then it is possible that returns would be high. Hedging: Sector funds can be a good hedging investment.
Is it good to invest in sector mutual funds?
Sector funds are suitable for aggressive investors or those willing to take higher levels of risk in exchange for the potential to earn overwhelming returns. … If not, it is not advisable to invest in these funds. You may consider allocating about 10% of your portfolio towards sector funds.
Are sector funds safe?
Since sector funds are exposed to a single sector and fewer number of stocks, they tend to carry higher risk as compared to a diversified equity mutual fund. … Due to this high risk, financial planners believe investors should not allocate more than 5-10% of one’s portfolio to a sectoral fund.
Which is best sectoral mutual fund?
2. Top Sectoral Banking Mutual Funds
|Fund||3-Year Returns||5-Year Returns|
|Axis Banking & PSU Debt Fund Growth||9.22%||8.68%|
|DSP Banking & PSU Debt Fund Regular Growth||8.73%||8.60%|
|ICICI Prudential Banking and PSU Debt Fund Growth||8.06%||8.58%|
|SBI Banking and PSU Fund Regular Plan Growth||9.07%||8.44%|
How much should I allocate to sector funds?
You should allocate capital to every sector. Start by allocating 10% to each sector. This will be your basic allocation, and now you should start adjusting it according to several parameters that includes volatility and global diversification.
Which sector should I invest in now?
Commodities, especially metals are in a clear super cycle. We should be looking at metal stocks, followed by cement stocks and then the financials. These are the key preferences for investing in markets today, says V-P-Equity Advisory, MOFSL.
Which sector is best for investment?
7 Sectors for Long Term Investment
- IT (Information Technology): The revival of USA economy is good news for IT sector. …
- Pharma (Pharmaceuticals) Recently Govt of India has taken certain steps to promote pharma sector. …
- Housing Finance Companies / NBFC: …
- Auto – 4 Wheeler. …
- Infrastructure: …
- FMCG – Urban Consumption. …
Are sector funds worth it?
Sector funds can be a good choice for investors of several stripes. They can help aggressive investors who want to maximize their exposure to a part of the economy they expect will outperform. Sector funds also can be used to position portfolios defensively during market downturns.
Is it right time to invest in pharma fund?
Though the longer term outlook for the sector is definitely positive, I believe that the near term upside may have been already captured. It would be more preferable to select a diversified fund with high pharma exposure or with more exposure towards the ingredients manufacturing space.
Who should invest in thematic funds?
3. Who Should Invest in Thematic Funds?
- Investors with High-Risk Appetite: Thematic funds are one of the riskiest mutual fund categories. …
- Investors Seeking Returns in the Long Term: Sometimes, for a theme to operate at its full potential it takes time. …
- Well-Informed and Evolved Investors:
What is Blue Chip Fund?
Blue chip funds are equity mutual funds that invest in stocks of companies with large market capitalisation. These are well-established companies with a track record of performance over some time. … Blue Chip is commonly used as a synonym for large cap funds.
Which mutual funds are best to invest now?
Here is the list of top 10 schemes:
- Axis Bluechip Fund.
- Mirae Asset Large Cap Fund.
- Parag Parikh Long Term Equity Fund.
- Kotak Standard Multicap Fund.
- Axis Midcap Fund.
- DSP Midcap Fund.
- Axis Small Cap Fund.
- SBI Small Cap Fund.
Which bank is best for mutual funds in Canada?
Best Mutual Funds in Canada
- RBC Select Very Conservative Portfolio A. Risk level= conservative. …
- RBC Select Conservative Portfolio A. Risk level= conservative. …
- RBC Select Balanced Portfolio. …
- RBC Bond Fund O. …
- TD Canadian Bond Fund – O. …
- RBC Global Corporate Bond Fond O. …
- RBC European Equity Fund O. …
- RBC Canadian Dividend Fund A.