Is it more profitable to invest in infrastructure related funds or opt for diversified funds?

It is better to avoid sectoral funds such as infrastructure related funds, since they are prone to higher risk when compared to diversified equity mutual funds.

It is true that sectoral funds provide an opportunity to investors to invest in shares of a particular sector and have often provided higher returns; however lack of flexibility, the concentration of investments in a few companies of a particular sector and higher expense ratios make sectoral funds an unattractive investment option.