What are sector-specific funds/schemes?
Sector-Specific Funds are mutual funds that channel their investments into a particular sector or industry, such as Pharmaceuticals, IT, FMCG, or Banking. As outlined in the offer documents, the performance of these funds is closely tied to the corresponding sector's health. While the potential for higher returns exists, the risk is also elevated due to lack of diversification. Investors should closely monitor sectoral trends and be ready to make timely exit decisions.
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What are closed-ended funds/schemes in mutual funds?
Closed-Ended Funds or Schemes are specific types of mutual fund schemes that are available for subscription only during a designated timeframe, often referred to as the New Fund Offer (NFO) period. They come with a predetermined maturity date, ...
What is the benefit of open-ended funds/schemes?
These funds/schemes offer liquidity to the investors.
What are Open-Ended Funds/Schemes?
An Open-ended mutual fund schemes are available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. It allows investors to enter and exit the fund anytime after the NFO, whereas a close-ended fund ...
What are debt oriented schemes in mutual funds?
Debt Oriented Schemes, often known as income funds, primarily invest in fixed-income securities like bonds, treasury bills, and other debt instruments. Their primary goal is to offer regular and steady returns to investors. Given their investment ...
What are equity oriented schemes in mutual funds?
Equity Oriented Schemes predominantly invest in equity and equity-related securities. Their primary objective is capital appreciation over the investment duration. These funds expose investors to the dynamic world of equities, and hence, they come ...