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POSTED BY ON March 5, 2014 3:23 pm COMMENTS (5)
Is it good to have SIP in sectoral funds like Reliance Pharma and ICICI Prudential Technology. If I compare the returns of these funds with any other fund in Large/Mid Cap, these funds have very good returns in last 5 years, but I am not sure about the risk and future performance.
I am aware that these funds are not diversified as other Large/Mid Cap but I just wanted to know how much risk I am putting in, for these funds. I went through lot of discussions about MF selection but not many talk about sectorial funds and hence I need advise.
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Dear Sunny,
I am with you on this. Sectoral funds are high risk high return products.
Personally i am investing in reliance pharma fund.
Diversification is not always good 🙂
Thanks,
Rahul
Dear Sunny, what’s your take on my counter query to you?
Thanks
Ashal
I agree that they are risky but when I look at Reliance Pharma and ICICI Prudential Technology performance over 5 years, they have beaten Large/Mid Cap consistently by big margin. Thats why I am thinking should I invest my 10% in pharma fund. Another thought is that will pharma industry ever go down?
Please let me know what you guys think.
Thanks in advance
Dear Sunny, pleasecheck the performance of Infra funds or Power funds and you ‘ll get your answer.
Thanks
Ashal
Sectoral Funds are the most riskier funds than any funds and the reason is they are not diversified, which you also know. Choice is yours to invest or not.