Should You Invest In Sector & Thematic Funds?

Hemant Rustagi Chief Executive Officer, Wiseinvest Pvt Ltd.

Sector and thematic funds have been attracting a lot of inflows from investors. Although these funds have varying degree of suitability to different segments of investors, those who want to park their funds often get attracted to them when the going is good in the stock market. However, as the markets turn volatile or bearish, the performance of some of these funds gets more impacted than diversified funds. This often causes a dilemma in the minds of investors as to whether they should hold them or get rid of them.