Investing in mutual funds is a great way to earn market-linked returns. Investors looking to benefit from market movement may put money in some of the best-performing mutual fund schemes to achieve their financial goals in time.
"Investors should limit their sector exposure to not more than 5% and overall portfolio allocation to sector funds should not exceed 10%. Sector funds can be risky due to constant sector rotation in the market. It is difficult to predict which sector will perform well in the future. Diversified equity funds with graded sector exposure are a better option for most investors. Timing is crucial and buying when a sector is beaten down may be a good strategy."
The investment options mentioned are a mix of fixed-income and financial market-linked products. Have a judicious mix of investments keeping risk, taxation and time horizon in mind.