Mutual Funds, Nov. 25 -- When planning to invest in mutual funds, you face several decisions: how much capital to invest, which AMC to choose, and, most importantly, which category to select (e.g., large cap, mid cap or small cap).

Among several categories of funds, investors tend to invest in sectoral/thematic mutual funds to gain exposure to a specific sector or concept.

1. Growth potential: Most sectoral funds are active mutual funds, which means fund managers have complete autonomy over which funds to pick and which not. This presents an opportunity for investors with a high risk appetite.

2. Ride the tide: Investors sometimes want to make the most of an ongoing trend. For example, someone may want to ride the tide on the infrastru...