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What is the difference between thematic and sector funds?
Sector funds and thematic funds belong to the category of equity mutual funds. Sector funds focus on specific sectors or industry like banking, pharma, information technology, real estate, energy, etc. Thematic funds, on the other hand, invest in stocks which are well-defined around a particular opportunity.
What is a thematic fund?
Thematic funds are predominantly a type of equity mutual funds that invest in companies tied around a well-defined theme across various sectors. For instance, a fund built on farming/agriculture theme might invest in equity stocks belonging to the automobiles, chemicals, fertilizers, core agriculture stocks.
What is sectoral fund?
Sector or sectoral funds are a kind of equity funds that concentrate their portfolio towards equities of companies across all market capitalisations of a particular sector. These funds are capable of providing benchmark-beating returns at times when the markets are favourable, and the sector is expected to grow.
Is it good to invest in sectoral funds?
Sector mutual funds provide an opportunity for investors to invest in sectors that have a high potential to grow. These mutual funds provide attractive returns but generally if the investment timing is precise. The timing of investment in sector-specific funds is vital. Also, the exit from the fund becomes crucial.
What are sectoral funds?
What is equity sectoral?
A sectoral fund is an equity fund that invests the money of investors in businesses belonging to the same industry or sector. These funds let investors take exposure in specific sectors of the economy by putting all their money in companies of the same sector.
What are diversified mutual funds?
A diversified fund is an investment fund that is broadly invested across multiple market sectors, assets, and/or geographic regions. It holds a breadth of securities, often in multiple asset classes. Its broad market diversification helps to prevent idiosyncratic events in one area from affecting an entire portfolio.
Which is the best sectoral fund?
2. Top Sectoral Banking Mutual Funds
| Fund | 3-Year Returns | 5-Year Returns |
|---|---|---|
| Axis Banking & PSU Debt Fund Growth | 9.22\% | 8.68\% |
| DSP Banking & PSU Debt Fund Regular Growth | 8.73\% | 8.60\% |
| ICICI Prudential Banking and PSU Debt Fund Growth | 8.06\% | 8.58\% |
| SBI Banking and PSU Fund Regular Plan Growth | 9.07\% | 8.44\% |
What is a diversified fund?
What are sectoral mutual funds?
Mutual funds that aim at investing in a specific sector are called Sectoral funds. These funds invest only in businesses that operate in a particular sector or industry. For instance, a sector fund may invest in sectors like Banking, Pharma, Construction, or FMCG sectors, among many others.
What are thematic mutual funds?
Mutual funds that invest in stocks of multiple sectors, revolving around a determined theme are known as Thematic funds. Given the guidelines laid down by SEBI, Thematic funds are strictly bound to invest at least 80\% of their assets in stocks of a determined theme, across multiple sectors.
What is Aditya sectoral fund?
A sectoral fund is a type of equity fund which invests at least 80\% of its total assets in a particular sector like technology, pharmaceuticals, banking, FMCG, etc. A few examples of such schemes are: Aditya Birla Sun Life Banking & Financial Services Fund– It has invested around 87\% of its assets in the financials sector (as of August 19, 2019).
What are the best thematic funds to invest in 2020?
Best Thematic Funds to Invest in 2020 Fund Name AUM (In Crore) 3-Year Returns (In \%) 5-Year returns (In \%) ABSL MNC Dir 3,918 10.88 7.82 SBI Magnum Global Fund Dir 3,748 8.92 6.73 SBI Magnum Equity ESG Dir 2,735 9.95 7.75 UTI Dividend Yield 2,333 6.01 4.81