New Delhi, June 18 -- As a new mutual fund investor, one of the most common dilemmas one tends to face is the category of fund wherein one should invest. Typically, investors are recommended to opt for an index mutual fund which hedges the risk by investing across stocks and sectors.

Some common index mutual funds are Nifty50 Fund, Nifty100 fund, Sensex 500 Fund and Nifty250 small cap fund, and so forth.

However, what should one do if one is committed towards a particular sector or theme -- say innovation, consumption, manufacturing, technology, among others. Invest in a sectoral/thematic fund? These funds are meant for the ones who are committed to a particular sector or theme.

As per the Sebi's categorisation of mutual fund schemes, ...