By Admin 
If you are thinking of investing money in the stock market at this time, then there is a great opportunity for you. After the fall of the last few months, light recovery is now visible in the market and with this some mutual funds have also given excellent returns.
Especially sectoral/themetic funds like banking, consumption and ESG have performed strongly. These funds have recorded an average increase of up to 5.07 percent, 4 percent and 2.41 percent in the last one month. Apart from this, funds of midcap and large and midcap category have also given good returns of more than 2 percent.
These funds ahead in banking sectors
If we talk about top funds, then the first in the banking sector Sundaram Financial Services Opportunities Fund, which gave a return of 6.48 percent. After this, HDFC Banking & Financial Services Fund gave 6.29 percent and Tata Banking and Financial Services Fund gave 6.16 percent return. Nippon India Consumption Fund earned 6.25 per cent, Tata India Consumer Fund 5.22 per cent and Sundaram Consumption Fund earned 5.16 per cent in consumption funds.
In ESG themetic funds, Quant ESG Equity Fund gave 3.87 per cent, ICICI PRUDINIAL ESG EXCLUSIONARY Strategy Fund by 2.85 per cent and Whiteoak Capital ESG Best-in-Class Strategy Fund returned 2.71 per cent. At the same time, in midcap category, Taurus Mid CAP Fund gave 2.82 per cent and in Large and Midcap category Invesco India Large & MID CAP Fund gave 3.56 per cent return.
Sectoral and themetic funds also have risk
It is very important to understand one thing before investment. Sectoral and thematic funds look very attractive to hear, but the risk in them is also very high. Sectoral funds invest only in one sector, such as banking or IT, if that sector goes well then it gets good profit, but if it falls, then the loss is equally faster. Thematic funds are slightly wide and are based on a particular theme, such as ESG, which may include companies from different sectors.
The biggest risk of these funds is ‘Concentration Risk’. That is, all your money bets on a few selected sectors or themes. If their performance is impaired, then your investment can also be affected badly. Therefore, these funds are not for every investor. These are more correct for those who have a good understanding of the market, have the power to take risk and can invest for a long term i.e. at least five years or more.
What should investors do
If you are a new investor or do not know from the depth of a particular sector, then it would be better to start investing with diversified equity funds or index funds first. Only the investment made with correct information and patience can increase your money safely in market fluctuations.
Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)
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