sector funds
Are they at atleast at par with index funds in long term?
Are you investing in any? If yes then in which?
Any other point that you would like to add?
@Rajkotian @Jarvis.-. @legend101 @flash007 @Ramta_Jogi
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PSU & Defence stocks are on fire. Also look at IT. You can check these sector funds . due diligence. keep track of them as these will provide short term benefits. But I think investing through stocks in sector are better . Stay till the hype lasts & move on - that's the strategy for sectorial funds.
It is recommended to invest in sectoral if you believe that one sector of the economy is going to outperform the index. for example, if you believe oil and gas will loose its touch and green energy will be the future, then you should invest in funds specific for that. or if you believe in IT or Financial sectors, you should go with them. the point being, sectoral will not match index, they will either beat or lose against the index, it is on you to decide which sector will beat and bet on that. if you truly believe in a sector, then you can find a MF for that, if you dont find any, you can research small cap (atleast 20) stocks and manage those, or you can go with platform like smallcase which does the same and charge a lot. personally, i believe in green energy and construction sectors, and not that hyped about IT or oil and gas. finance/banking is i feel in the middle and can go any way.
I am invested in many thematic as well as sectoral MFs. A few International thematic and sectoral as well as they are not available in India. With a long enough time frame (20+ years), this should play out just fine.
How do you invest in international funds??
your views on sectoral vs index funds?
As Index funds are different category/nature, not possible to compare them with sector funds.
yeah, it makes sense to invest in these:
Other than these I don't prefer any other sectors. Although, I haven't invested in these funds yet, but I will invest in the future if I see any opportunity.
Also, one more sector I like is Banks but I invest directly in stocks in that sector.