New Delhi, March 20 -- C.K. Tiwari, Noida, Uttar Pradesh

Before we understand what commodity mutual funds are, let's understand sectoral mutual funds. Sectoral mutual funds invest exclusively in companies belonging to a specific sector or industry.

For example, you can find sectoral mutual funds dedicated to industries like healthcare, technology, financial services, energy, real estate, or consumer goods. As per Securities and Exchange Board of India (SEBI) regulations, sectoral mutual funds are mandated to invest at least 80% of their corpus in the sector or theme of their choice. By concentrating investments within a specific sector, these funds allow investors to capitalise on the growth potential of industries they believe will per...