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What are sectoral funds? Here's all you need to know

 Sectoral funds are sector-centric mutual funds which invest in companies from the same industry.

SEBI mandates that at least 80% of the fund has to be invested in equity or equity related instruments.


 It is important to have an in-depth knowledge of the industry and stock market sentiments before investing in sectoral funds.


The biggest advantage of investing in sectoral funds is that investors can gain exposure to certain segments of the economy.


However, if the industry does not perform well, the investor’s portfolio will suffer and there will be nothing to set it off.


Investors should not invest more than 10% of their investment in sectoral funds.


If you are confident enough about the industry growth, you must explore the sector which will help you in building wealth for yourself.


Click here to know more about sectoral funds

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When it comes to investing in stocks via mutual funds, investors look forward to diversifying their funds in various ways to optimise their returns. In this article, we will make you understand about one of the famous ways of diversification through sectoral funds.

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What are sectoral funds? Here's all you need to know

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