Tanisha Singh wants to know which would be a better investment - sectoral fund or diversified fund
09-Jan-2009 •Research Desk
In present scenario, which one is better between sector fund and diversified fund?
- Tanisha Singh
Regular investment in one or few diversified equity funds is the most desirable way for most long-term investors seeking growth.
Sector funds are avoidable for common equity investors as they are vehicles for targeted diversification. To benefit from a sector fund investors have to actively decide when to buy and sell. They also prove to be more volatile than a diversified equity fund.