Skip to content
Home » 4 Reasons To Avoid Sector Specific Mutual Funds

4 Reasons To Avoid Sector Specific Mutual Funds

4 Reasons To Avoid Sector Specific Mutual Funds

Sectoral funds are mutual funds that invest in a particular industry sector or a theme. Examples are “Pharma” fund, “FMCG” fund, “Banking Fund”. A sectoral theme could be “GST” which invests in stocks that might benefit from the Goods & Service Tax implementation. Sectoral funds are a good way to take exposure in a particular industry without worrying about which specific stock to invest in. However, one needs to be wary of the risk they impose by being concentrated in a particular set of stocks with very limited flexibility.

To read more, please click on the following link :- https://jamawealth.com/blog/sectoral-funds-not-right-choice/