Therefore, if you are an investor looking for good long-term returns, Themed funds are a good option for youHowever, first-time investors are advised not to jump straight into thematic funds at the beginning of their investing journey.

Are Themed Funds Risky?

Before continuing to invest in sector or thematic funds, it is advisable to have a diversified portfolio of conventional funds.Sector and thematic funds are Known for its higher risk and volatilitywhich means investing more than 10% is a considerable risk for any investor.

What is thematic fund?

Thematic funds are Equity mutual funds that invest in stocks related to the theme. These funds are broader-based than sector funds because they select companies and sectors united by an idea. For example, infrastructure-themed funds will invest in industries such as cement, power, and steel.

Are investment sector funds any good?

Industry mutual funds provide investors with an opportunity to invest in great growth potential. These mutual funds offer attractive returns, but usually when the timing of the investment is right. The timing of investing in sector-specific funds is critical. Also, exiting the fund becomes critical.

Which SIP is best for 5 years?

Best SIP Plans for Equity Funds 5 Years

• Axis Bluechip Fund Monthly SIP plan. This is an open-ended stock plan with an excellent track record. …
• ICICI Prudential Blue Chip Fund. …
• SBI Blue Chip Fund. …
• Mirae Asset Large Cap Fund. …
• SBI Long Fund.

Why you should avoid themed funds

18 related questions found

What are the top 5 mutual funds?

Here is a list of the top 10 programs:

• Axis Blue Chip Fund.
• Mirae Asset Large Cap Fund.
• Parag Parikh Long Term Equity Fund.
• Kotak Standard Multi-Share Fund.
• Axis Mid Cap Fund.
• DSP Mid Cap Fund.
• Axis Small Cap Fund.
• SBI Small Cap Fund.

Is it time to invest in pharma funds?

While the long-term outlook for the industry is certainly positive, I believe the near-term Upside may have been captured. It is preferable to choose diversified funds with high pharmaceutical risk or more exposure to the ingredient manufacturing sector.

Who should invest in sector funds?

we always recommend Investors should have a diversified regular investment portfolio Before they consider investing in industry funds. Since you will be putting all your eggs in one basket, it is important to have a strong and balanced portfolio and limit your industry exposure to 5-10% of your portfolio value.

Is it good to invest in technology funds?

Technology mutual funds in India have been providing Annualized returns of 15% to 19% over a five-year period. With such impressive performance in the past, it is believed that these funds will bring decent returns in the future.

What is a theme combination?

What is a theme portfolio. … this Portfolio built on innovative ideas Not only does this allow investors to participate in some of the world’s most promising investments, but it also provides diversification to the overall portfolio.

What are thematic ETFs?

Thematic ETFs Allows investors who don’t want to do all the analytical work on individual companies to simply buy industries or trends. . . By buying one share of an ETF, you buy shares in all the companies in the fund, gaining a quick understanding of the subject and narrow diversification among those companies.

Why are sector funds at risk?

Since sector funds invest in only a single sector and have a small number of stocks, they tend to take higher risks Compared to a diversified stock mutual fund. …because of this high level of risk, financial planners believe that investors should not allocate more than 5-10% of their portfolio to sectoral funds.

What is thematic equity?

Thematic investment—— Sources of sustainable capital growth. The main purpose of the thematic equity strategy is to invest in assets whose returns are subject to structural changing forces that are independent of the evolution of the economic cycle.

Where are debt funds invested?

Debt funds invest in Fixed-interest-bearing securities, such as corporate bonds, government securities, Treasury bills, commercial paper, and other money market instruments. The fundamental reason for investing in debt funds is to earn stable interest income and capital appreciation.

Which industry is the best to invest in?

The 5 best industries to invest in in 2021

• – Banking: Some industry mutual funds have increased their allocation to this sector of the economy, resulting in a higher proportion of banking and financial stocks in the market. …
• – infrastructure: …
• – Pharmaceuticals: …
• – IT/Technology:…
• – Chemicals:…
• in conclusion.

Which pharmaceutical stock is the best?

Top 10 Pharma Stocks to Buy in India [2021]

• Sun Pharmaceutical Industries Ltd. Sun Pharmaceutical Industries Ltd is a Mumbai-based multinational Indian company. …
• Divi Labs. …
• Dr. Reddy’s laboratory. …
• Cipla Limited…
• Baikang Co., Ltd…
• Torrent Pharmaceutical Co., Ltd…
• Aurobindo Pharmaceutical Co., Ltd…
• lupin co., ltd.

Which MF has the highest return?

These funds invest in debt and money market instruments with maturities of three to six months.

• ICICI Prudential Ultra Short Term Fund.
• Mahindra Manulife Low Duration Fund.
• Aditya Birla Sun Life Savings Fund.
• Kodak Savings Fund.
• SBI Magnum Ultra Short Term.

What is a blue chip fund?

blue chip funds are Equity mutual funds that invest in stocks of large-cap companies. These are established companies with a proven track record over time. …blue-chip stocks are often used as a synonym for large-cap funds.