Home / Finance / Personal Finance / Capitalise on the industry insight by investing in its sector fund

Capitalise on the industry insight by investing in its sector fund

Choosing such a fund based on recent returns can, however, jeopardise portfolio performance

Premium

Illustration: Binay Sinha

Sanjay Kumar Singh Karthik Jerome

4 min read Last Updated : Sep 22 2023 | 10:53 PM IST

Listen to This Article

Sector funds like automotive (25.9 per cent), pharmaceutical (23.3 per cent) and information technology (21.8 per cent) are among the best-performing categories year-to-date among equity funds. Investors are flocking to them in large numbers. According to data from the Association of Mutual Funds in India (Amfi), these funds attracted inflows of Rs 4,805 crore in August, outpacing all other categories of mutual funds (MFs).

The allure of recent returns

One driving factor behind investors gravitating towards sector funds is recency bias. They are essentially getting drawn to categories that have exhibited strong performance in the recent past. “At

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in