Sector themed and focused funds invest in one type of asset or in a narrow segment of the market, making these funds more vulnerable to sharp declines if things go wrong. Returns may be good, but risk is high too.
Investment StrategyThis is where you can learn about the right way to invest and where to invest. These articles will help you make wiser choices as an investor.
When I started investing myself, I too believed in these metrics blindly and chose based on that. It took many years of learning and real-life investing experience for me to realise a subtle truth. That truth was simply that growth rates matter but they are still subservient to one key factor which is much more in your control than the markets.
While one is cognisant about equity allocation, given its risk profile, often we are not as meticulous in defining our fixed income allocation. However, in order to have an efficient portfolio and maximise gains for your risk level, it is important to identify your fixed income allocation accurately too.