What are sectoral specific funds?
These are schemes whose objective is to invest only in the equity of those companies existing in a specific sector, as laid down in the fund’s offer document. For example, an FMCG sectoral fund shall invest in companies like HLL, Cadbury’s, Nestle etc., and not in a software company like Infosys. Currently there exist approximately four broad classifications of basic sectors namely – technology, media & telecom (TMT), fast moving consumer goods (FMCG), basic industry (that invest in core industries like petrochemicals, cement, steel, etc.) and pharmaceuticals.
