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Mutual Funds Classification

Types of mutual fund schemes based on asset classes:

Election 2019 is underway and even as the summer heat is yet to pick up, the heat and dust of electioneering are raising the temperature. It is a good time to pause and think about the challenges and opportunities that would face the incoming government.

Sector funds are those mutual fund schemes, which carry the mandate to invest in the companies working in the specified sector predominantly. Such funds invest a minimum of 80% in equity instruments of that particular sector. For example, a banking fund can help you have a focused investment in banking stocks.

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<p dir="ltr"><strong><span id="docs-internal-guid-ecb9fffa-7fff-73cc-1fde-67b0936a7092">Timing the investment </span></strong></p>

<p dir="ltr"><span id="docs-internal-guid-ecb9fffa-7fff-73cc-1fde-67b0936a7092">How do you think equity markets will perform post-election results? Should one wait for the results before investing in equity?</span></p>

Historical data suggests that no asset class has been consistently a winner always. As such, having an optimum asset allocation is your key to long term wealth creation, as it allows the portfolio to perform across the market trends and economic cycles.

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<p dir="ltr">&nbsp;</p>

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Come elections, and the whole investing fraternity gets busy predicting the effect they might have on the stock market and how will they make the Sensex dwindle. The upcoming General Elections 2019 are not untouched by the speculation either, especially in the aftermath of the state elections when a lot of predictions went haywire.