Sector Funds:



  These funds invest in specific sector like Pharma, Banking, Information Technology etc.
  These funds are subject to all the news that affect / benefit the specific sector.
  The main advantage of this fund is, you can 'buy a bucket' full of all the stocks in that sector.
  The main disadvantage of this fund is: any adverse news could sink this fund and the fund manager has got no other option – but to simply watch since the investment mandate is to invest in that sector only.