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Sector-specific mutual funds/schemes invest in the securities of only those sectors or industries that are specified in their offer documents, such as pharmaceuticals, software, fast moving consumer goods (FMCG), petroleum, information technology (IT), or Banks.
The returns in these funds depend on the performance of the sectors/industries that the funds invest in.
While these funds may give higher returns, they are more risky compared with diversified funds, since they focus on specific sectors.
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