What are sector mutual funds

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WHAT ARE SECTOR MUTUAL FUNDS

Transcript of What are sector mutual funds

CONTENTS

Types of sectoral funds01 /

Categories of stocks02 /

Advantages of each fund types03 / 04 /05 /06

Should you buy sectoral funds?07 /

CATEGORIES OF STOCKS

01 Cyclical Sectors - They peak during Economic activity andgoes down when there is recession. Banking, Automobile etc

02 Defensive Sectors - Constant growth irrespective of economicactivity. Pharma, FMCG etc

PHARMA FUND

Advantages of Pharma fund

CAGR of more than 15% in the lastdecade.Lifestyle diseases have made pharmaindustry a constant partner.Indian industry made a mark already inthe pharma world

BANKING FUND

Advantages of Banking fund

CAGR of more than 11.5% in the lastdecade.Banking an essential industry for theeconomic activity in any country

AUTOMOBILE FUND

Advantages of Automobile fund

It represents 7% of the GDPConsumption directly indicates purchasepower and economic activity in thecountry

IT FUND

Advantages of IT fund

Indian growth is led by IT after economicliberalisationGlobal IT revolution was led by india indeveloping countries like US, Europe etc

FMCG FUND

Advantages of FMCG fund

Indian FMCG growth is at the rate of more than15% and there is a light drop in the last couple ofyearsICICI and SBI are the only 2 funds available in thiscategory

SHOULD YOUBUY SECTORAL

FUNDS

Why not?, check the returns here