I want to invest in sectoral funds. Is it a good time to invest in technology funds?
- Bharat
I generally advise investors to avoid sectoral funds. However, technology funds have been such that they have never suffered losses if investors have invested for two-three years. The situation of technology funds has changed drastically over the past 15-20 years. This sector has now become a mainstream one.
When an investor wishes to invest in a sectoral fund, it is because he is generally not aware of which companies, in particular, should he invest in that sector. However, if you consider any technology fund, the top five-seven companies across these funds are the same, with about 70-80 per cent of the assets invested in them.
This article was originally published on July 12, 2021.
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