I have invested in numerous diversified equity funds via SIPs. Now I want to invest in sector funds like Reliance Pharma, Banking and Power Sector. These funds have done well over the past five years. Your view?
- Sagar Ramdas
It seems interesting that you have zeroed in on the schemes of just one fund house. Why do you want to invest in a sector fund? It's obvious from your question that you are not considering such a fund because you believe in the fortunes of that sector. You have just looked at the recent returns and want to get a slice of that cake. Sector funds have their moments in the sun and plenty of times they get battered too. Are you sure that your current equity diversified funds do not have sufficient exposure to those sectors? If you believe in the potential of a sector, take a small exposure to such a fund, say maximum 20 per cent of your equity portfolio. Or else, avoid such funds.
This article was originally published on October 05, 2010.
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