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Avoid Sectoral Funds

A sectoral fund like Reliance Pharma shouldn’t be one of the two funds that you hold…

   

I am investing via SIPs in Reliance Pharma and Franklin India Prima Plus. Are these good funds?
-Surjeet

Both of these are good funds in their respective categories. However, for an ordinary investor investing for the long-term, a sectoral fund like Reliance Pharma shouldn’t be one of the two funds that he holds. You should move out of this fund and choose a well-performing, diversified equity fund to invest in. As far as Franklin India Prima Plus is concerned, it’s an excellent fund; continue investing in it.

This article was originally published on February 12, 2013.

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