Sectoral funds are mostly ignored by investors as schemes under this category are exposed to a single sector with only a handful of stocks, and thus they carry higher risk compared with diversified funds.
Are you among those investors who have totally ignored sectoral funds? If yes, then you have missed an opportunity to outpace other equity funds in the long run.
Data from mutual fund research firm Valueresearch.com suggests sectoral funds focused on FMCG, pharma and banking sectors have delivered annualised returns of 19.35 per cent, 17.68 per cent and 17.61 per cent (CAGR), respectively, over the past 10 years till March 15, 2017.
