Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What are SECTOR FUNDS ?

April 26, 2017funds sector

0

Posted

What are SECTOR FUNDS ?

2 Answers

0

Posted

The riskiest category among equity funds, sector funds invest only in stocks of a specific industry, say, IT, FMCG, Pharmaceuticals, etc. Sector funds usually aim for growth, and while this can be very lucrative if the sector is doing well, the corresponding risk factor is also higher.

0

Posted

These are speciality mutual funds that invest in stocks that fall into a certain sector of the economy. Here the portfolio is dispersed or spread across the stocks in a particular sector.This type of scheme is ideal for the investor who has already made up his mind to confine his risk and return to one particular sector. Thus, a FMCG fund would invest in companies that manufacture fast moving consumer goods.