Tipping point: Is it advisable to invest in technology sector funds?

Don't invest more than 5-10% of equity portfolio in sector funds

Technology funds
Business Standard
Last Updated : Feb 13 2019 | 11:10 PM IST
Technology sector funds have offered 19 per cent return over the past one year when all other categories of domestic equity funds are in negative. The information technology (IT) sector has been riding on good earnings of the bellwethers. 

While the outlook of the sector remains positive, it is not advisable for retail investors to make substantial investments in sectoral funds, as they are highly volatile and can witness 

extreme swings. Don't invest more than 5-10 per cent of equity portfolio in sector funds. Also, most diversified funds will have some exposure to these stocks.

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