InvestorQ : Are sectoral/thematic funds better than the contra funds?
Akansha Shivdasani made post

Are sectoral/thematic funds better than the contra funds?

Sadaf Khan answered.
2 years ago

It is very difficult to ascertain whether one kind of fund is better than the other because it is very subjective. What works for one investor may not work for another. It all boils down to the financial profile of the investor and their temperament.

As long as the investor has invested in the funds through a rigorous process and understands why the fund is part of his financial portfolio, the said fund will work better for him. But if you invest in a fund based on borrowed convictions, it may have the potential to give you substantial returns, but you might not have the patience to hold on to it when times are rough.

So, investing in either of the two may be profitable for your portfolio, provided you choose high-quality funds and have an understanding or process of your reasons for investing in the said funds.