New Delhi, April 22 -- Investors' reaction to risk or loss may vary quite differently, says Anand Vardarajan, Business Head - Banking, Institutional Clients, Alternate Products and Product Strategy, Tata Asset Management.

In an interview withMintGenie, Vardarajan said that there is an ardent need to look at index funds for their underlying opportunity rather than just their low expense ratios.

We believe that thebanking and financial services sector is attractively positioned from a valuation perspective. Pharma hasn't participated much in the up move and this could benefit from a medium to long-term perspective. The IT sector could offer some good entry points this financial year.

I think one should look at index funds not just from a...