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Avoid Concentrated Funds

We don't recommend any sectoral or thematic funds because they're not

FMCG funds have given good returns but not many analysts recommend them. Why is that? Should I go for ICICI Prudential or SBI FMCG?
- Rohit Chowdhury

Yes, normally, analysts don't recommend FMCG funds. Even we, at Value Research, don't recommend them, or any other kind of sectoral or thematic funds. We advice investors to invest in diversified funds, because they serve the purpose of investing in mutual funds. Concentrated funds are not suited for most individual investors. You get the full advantage of mutual funds by investing in diversified schemes. And most diversified funds will give you adequate exposure to sectors like FMCG that are doing well. So you don't even miss out on anything. Sector funds do very well or very poorly, which is why they're volatile investment vehicles.



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