• Sector Funds offer minimal diversification of funds and is primarily concentrated on specific sector.
• Investment is relatively risky as compared to Equity Mutual Funds as diversification of funds is restricted.
• Sector Funds do tend to perform well when the stock market is choppy and going through a lean period. Few sectors move in the opposite direction to the market.
• Sector Funds is ideal for Investors whose portfolio lack investment in particular sector and there lies a strong growth potential in the concerned sector.
• Sector Funds are directed towards aggressive investors who are willing to take additional risk to gain potential high return.
• Investors should remain invested in Fund for atleast 5-10 years to witness substantial return on the investment depending on the performance of the sector.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities. Readers are advised to research further to have more clarity on the topic. It is very important to do your own analysis and consult your Financial Advisor before making any investment based decision.