Sector- Specific Funds

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Sector- Specific Funds in India are those funds which make investments in those sectors that have been specified in the prospectus of the funds. The various sectors in which the Sector- Specific Funds in India make investments are software, petroleum stocks, power, and pharmaceuticals.

Mutual fund in India:

Mutual fund in India is a sort of trust that collects money from many investors and is managed by a group of fund managers. Mutual fund in India makes investments in call money, equities, debentures, and bonds.

The current value of Mutual fund in India is calculated regularly and it is reflected in the fund's Net Asset Value (NAV) that is declared at regular intervals of time. The Net Asset Value (NAV) of the Mutual fund in India keeps fluctuating with the changes that happen in the bond market and equity.

Definition of Sector- Specific Funds in India:

Sector- Specific Funds in India are those funds that make investments only in those industries or sectors that have been specified in the prospectus of the funds. Sector- Specific Funds in India usually make investments in sectors such as power, pharmaceuticals, petroleum, and technology. The amount of returns that Sector- Specific Funds in India give depends totally on the performance of the industries or sectors in which investments have been made.

Sector- Specific Funds in India give very high returns but at the same time they are also very risky in comparison to the funds that are diversified. This is the reason that the investors that have invested in Sector- Specific Funds in India need to carefully watch the operation of those industries or sectors and then at the correct time make an exit.

Main mutual fund companies that have launched Sector- Specific Funds in India are:

  • Prudential ICICI Mutual Fund
  • Birla Sun Life Mutual Fund
  • Franklin Templeton India Mutual Fund
  • Unit Trust of India Mutual Fund

To knoe more about Classification of Mutual Funds click on the following links:



Last Updated 06/30/2011

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