Is this the right time to invest in thematic mutual funds?
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I am interested in investing in mutual funds right now, so i am thinking about investing in sectoral or thematic mutual funds, but they have more risk factors. Should I wait for a better state of the market or invest in them right now? Are there other kinds of mutual funds I could invest in, probably with less risk?
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If you are aggressive investors and can tolerate the risk factor, then only invest in thematic or sectoral funds. Investing in both funds is quite risky. Additionally, these funds offer limited options for diversification. If you want to diversify your portfolio, then choose other funds.
Other options in mutual funds, such as large-cap or index funds, or debt mutual funds (bonds, treasury bills), offer lower risk and provide stability.