Thematic or sectorial equity funds

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Deal Cadet
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Friends how are thematic or sectorial equity fund like technology fund?

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Only for experts, in other words if you need to ask about them then they are not for you.

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Highly volatile with a risk of capital erosion and chances of major losses if you sell them in panic. IT Sector funds under performed the broader markets and major benchmarks from July 2016 – Jan 2018 falling up to 15%.

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Ramta_Jogi wrote:

Highly volatile with a risk of capital erosion and chances of major losses if you sell them in panic. IT Sector funds under performed the broader markets and major benchmarks from July 2016 – Jan 2018 falling up to 15%.

These were among first funds i invested into when starting to use MFs.
Very true highly risky, for almost a year my value was almost 70 perc of principal. But after that it kept growing.
And in last one year March – Feb, everyone knows the kind of gains that happened in equity. Atleast 100 perc on all majority equity funds.
And these sectoral ones were on rocket. 2x

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raman12 wrote:

These were among first funds i invested into when starting to use MFs.
Very true highly risky, for almost a year my value was almost 70 perc of principal. But after that it kept growing.
And in last one year March – Feb, everyone knows the kind of gains that happened in equity. Atleast 100 perc on all majority equity funds.
And these sectoral ones were on rocket. 2x

All my equity funds have given over 100 percent returns in past 1 year with Healthcare going to 130% but those were once, maybe twice, in a lifetime run – up.

If the sector underperforms, the MF takes a beating (classic example being Infrastructure Funds from 2012-2021). Flexi Cap Funds are a safer bet before venturing towards Sectoral/Thematic ones.

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Ramta_Jogi wrote:

All my equity funds have given over 100 percent returns in past 1 year with Healthcare going to 130% but those were once, maybe twice, in a lifetime run – up.

If the sector underperforms, the MF takes a beating (classic example being Infrastructure Funds from 2012-2021). Flexi Cap Funds are a safer bet before venturing towards Sectoral/Thematic ones.

Absolutely right.
Just wanted to mention if we can play well in the right times, again that only experts can. I am not one i know

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raman12 wrote:

Absolutely right.
Just wanted to mention if we can play well in the right times, again that only experts can. I am not one i know

I didn’t meant expertise wise. The lockdown time run up of stock market was all thanks to liquidity measures of US Fed Res and Governments worldwide announcing stimulus packages (other than Joomla of Indian Govt. – how is refund of income tax even a stimulus?) though we are seeing that losing steam now.
There won’t be any 100% returns in an year going forward.

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