Risk and Returns of Sectoral Funds in last 5 yrs

POSTED BY urfrdsunny 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.

5 replies on this article “Risk and Returns of Sectoral Funds in last 5 yrs”

  1. rahul123 says:

    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 🙂


  2. ashalanshu says:

    Dear Sunny, what’s your take on my counter query to you?



  3. urfrdsunny says:

    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

  4. ashalanshu says:

    Dear Sunny, pleasecheck the performance of Infra funds or Power funds and you ‘ll get your answer.



  5. Hemanth Chandra says:

    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.

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