Is it right time to invest in pharma sectoral Mutual Funds ?

Of late Pharma sector is buzzing and all self certified analysts saying that this sector is recession proof.

Every time there is excessive optimism surrounding a sector in general or a stock, it is always difficult to get through to investors. So overtaken are investors with the lure of making easy money that they refuse to be rational. Common investors continue to remain invested till all the hype surrounding the sector/stock has peaked and subsequently waned. In the process, we, the investor, probably make a return that does not compensate for the commensurate risk.

If you invest through Mutual Funds, then the risk should be substantially lower than direct exposure and returns should be consistently reasonable for atleast 5 years. None of the sectoral scored in this count. Previously hype around IT sector and Infrastructure. They didn't perform well. You are well off in investing in the diversified mutual funds (esp. through SIP). Because the fund mangers is under no compulsion to hold a sector which has no value. But a sectoral Mutual fund manger could not park the money outside the sector.
Don't carried away by hype. History repeats. If you still wanted to invest then make sure that your exposure to any sector didn't exceed 10 percent of your portfolio.

Bookmark and Share


Post a Comment

All comments are moderated. Please post no spam

Disclaimer & Privacy Policies

(c) Mrs. Ruby Christy. This site and contents are owned by Mrs. Ruby Christy;
Use of this website and/or services offered by us indicates your acceptance of our Disclaimer& Privacy Policies.

Information and opinions provided on this website ( has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers and R.John Christy and his Family shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website or feeds, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information.,its affiliates, information providers ,content providers and R. John Christy and his Family shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. Any action you choose to take in the markets is totally your own responsibility. and R. John Christy and his Family will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Opinions expressed by R. John Christy are his own and not of his past, present and future employers.
The DoubleClick DART cookie is used by Google in the ads served on this websites displaying AdSense for content ads. When users visit this website and either view or click on an ad, a cookie may be dropped on that end user's browser.
  • Google, as a third party vendor, uses cookies to serve ads on this site.
  • Google's use of the DART cookie enables it to serve ads to your users based on their visit to this site and other sites on the Internet.
  • Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.
  • never collects any personal information of visitors.