{"id":1089,"date":"2024-04-22T09:52:00","date_gmt":"2024-04-22T09:52:00","guid":{"rendered":"https:\/\/jamawealth.com\/askguru\/?p=1089"},"modified":"2026-03-02T19:28:23","modified_gmt":"2026-03-02T19:28:23","slug":"which-sectoral-funds-are-good-for-a-20-year-old-investment-horizon-via-sip","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/22\/which-sectoral-funds-are-good-for-a-20-year-old-investment-horizon-via-sip\/","title":{"rendered":"Which sectoral funds are good for a 20-year-old investment horizon via SIP?"},"content":{"rendered":"\n

In general, Sectoral Funds are avoidable for both short term and long term horizons. The reasons are lack of diversification, higher expense ratios and lack of flexibility.<\/p>\n\n\n\n

  1. Long term: Not great because over 20 years (your horizon) the ups and downs of various sectors even out. A diversified and multi cap or large cap bouquet of funds would actually do better and less volatile. Sectoral funds suffer from sequence of returns which means that a bad initial run can significantly reduce your long term returns.<\/li>
  2. Short term: Again not great because you may end up betting on the wrong sector.<\/li><\/ol>\n\n\n\n

    Here is more<\/a> on why sectoral funds may not be the best bet. When you are investing in mutual funds, the idea is to hire a professional manager at a low cost to manage your funds. Why take on additional headache of tracking each sector and switching in and out of funds!<\/p>\n\n\n\n\n

    \n

    Maxiom Wealth \u2014 Free Tool<\/p>\n

    Is Your Mutual Fund Working Hard Enough?<\/h3>\n

    Two funds with similar star ratings can deliver very different outcomes. Use our fund comparison tool to check if you’re in the right scheme for your risk profile and investment horizon.<\/p>\n Compare Funds \u2192<\/a>\n Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

    In general, Sectoral Funds are avoidable for both short term and long term horizons. The reasons are lack of diversification, higher expense ratios and lack of flexibility. Long term: Not great because over 20 years (your horizon) the ups and downs of various sectors even out. A diversified and multi cap or large cap bouquet… Read More »Which sectoral funds are good for a 20-year-old investment horizon via SIP?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[179,38],"tags":[],"class_list":["post-1089","post","type-post","status-publish","format-standard","hentry","category-fund-selection","category-mutual-funds"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1089","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=1089"}],"version-history":[{"count":1,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1089\/revisions"}],"predecessor-version":[{"id":3676,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1089\/revisions\/3676"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=1089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=1089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=1089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}