HDFC Asset Management Co. Ltd, the country’s second-largest fund house, is set to launch its first ever thematic fund called HDFC Housing Opportunities Fund—Series 1 (HHOF). In its 17 years of existence, the fund house was one of the very few among the top 15 fund houses to have stayed away from launching thematic funds, let alone sector funds. We’re not getting into the merits or demerits of these schemes, but let’s understand what sector and thematic fund are.
Although all equity funds—make that, all mutual fund schemes—come with risks (and, of course, with a potential to give returns), there are some equity funds that are higher on the risk-return ladder.
