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Is it fine to invest in a sectoral fund for two to three years?

Dhirendra Kumar tells when you should invest in a sectoral mutual fund scheme


Is it fine to invest in a sectoral fund for two to three years?
- Usha

The reason why you invest in a mutual fund is diversification. Sectoral funds are opposite to it. They invest in one sector only. You should invest in a sectoral fund only if you find that there is a sector which is missing in your portfolio and you for some special reasons are personally convinced that it is a promising sector. If that is not the case, diversification and regular investment are the best way to invest.

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