Description
In this third episode of the PrimeInvestor podcast, hosts Gaurav Menon and Vidya Bala (co-founder, PrimeInvestor.in) cover key news events and discuss all things related to sector funds.
We start with the news events that have an impact on the markets and your investments. We talk about the Nifty crossing the 19,000 mark, Prime Minister Modi’s visit to the US and the FDI inflows from Google, Amazon, Micron and GE Aerospace, the large scale block deals in the market, and the HDFC and HDFC Bank merger. Vidya then provide insights and analysis on these events and how they affect the economy and investors.
Next, we move on to the main topic of the podcast, sector funds, which are investment funds that invest in one type of industry or sector. Vidya explains what sector funds are, how they work, and whether they are worth investing in or not. She also differentiates between sector funds and theme funds, which invest in different sectors or industries based on a common theme.
Here, we caution the listeners about the risks involved in sector and theme funds, as they are more volatile, cyclical, and dependent on external factors than diversified funds. Vidya advises the listeners to invest in these funds only if they have a high risk appetite, a good understanding of the sector or theme, and a short to medium term investment horizon. She also suggests that investors should use SIPs rather than lumpsums to invest in these funds, and time both their entry and exit based on their own research and analysis.
Vidya also give some tips on how to choose a sector or theme fund, based on various factors. She emphasizes that investors should compare different funds based on these factors and choose the one that best suits their risk-return profile and investment objective. She also recommends that investors should review their investments periodically and make changes as per the changing market conditions.
Key segments in the podcast discussion:
Nifty crosses 19,000 mark
PM Modi’s visit to US and FDI inflows
Large scale block deals in the market
Byju's and other cash burning startups
HDFC and HDFC Bank merger
Risk in Sector Funds
Lumpsum vs SIP for Sector Funds
Importance of timing in Sector Funds
How to find the best Sector Fund
Veteran VC Kanwal Rekhi on Byju’s chaos
PrimeInvestor Financial Research Private Limited is a SEBI Registered Research Analyst with Registration No.: INH200008653. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The securities quoted are for illustration only and are not recommendatory. The securities quoted are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Disclosures & Disclaimers.
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