Sector Funds: Risky & Tricky

masteringmfInvesting in sector funds is tricky. The trick is in getting the right sector at the right time. Sector funds find place in a portfolio only when the sector in question is not well represented and the right balance is needed. There is another instance when sector funds find favour; when investment in them is used as a strategy to benefit from swings anticipated in the sector to boost overall portfolio returns or hedge the portfolio against violent swings.

It is worthwhile to evaluate one’s portfolio holdings and check the sector allocation and weightage. Based on this, one can consider adding the below mentioned funds to his/her portfolio. However, do track the performance of the funds frequently, as these are risky, considering the narrow segment in which they invest. And its always advisable to invest  only thru SIP mode in these sector funds to avoid risk.

Some sector Funds :

– Reliance Banking Fund

– ICICI Infrastructure Fund

– UTI Infrastructure Fund

– Reliance Pharma Fund

 

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