Are there any sector-specific funds or schemes?
There are some sector specific schemes.10 Dec 2008
There are
some sector specific schemes. Some funds/schemes invest in the securities of
only those sectors or industries as specified in the offer documents. It could
any sector such as pharmaceuticals, software, fast moving consumer goods
(FMCG), petroleum stocks, etc.
In such
schemes, the returns are dependent on the performance of the respective
sectors/industries.
These sector-specific schemes may give higher
returns, but the investment in such schemes is riskier compared to diversified
funds. As an investor, you need to be vigilant and keep an eye on the
performance of the specific sectors/industries. In such schemes, it becomes
extremely important for you to exit at an appropriate
time. You may also need to consult an expert regarding these investments