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Sector Fund v/s Diversified Fund

Tanisha Singh wants to know which would be a better investment - sectoral fund or diversified fund

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.

This article was originally published on January 09, 2009.

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