Should you invest in banking and financial services funds?

N-O. That's the short and straight answer. Here's why: Mutual funds that solely invest in banking and financial services are sectoral funds. Investing in such funds is laced with high risk because sectors are cyclical, and you need to know when to enter and exit. The sad part is that no-one can forecast how these sectors will perform in future. Not even astrologers or the so-called market experts. Which is why we have, for long, stood against the idea of putting your money in sectoral funds. Here's proof.