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Ibep project 3

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A sector agnostic fund is one that invests in a number of different industries.They follow a diversified bottom-up approach when it comes to selection of companies involving startups from different sectors of the industry.The idea is to have an optimum mix of companies that can help the fund deliver superior risk adjusted returns across market cycles.However given the vast number of sectors that exist in our country , it is not possible for anyone to have vast knowledge in all areas. If there are a few underperforming companies in the PE fund’s portfolio , then the overall returns of the fund will be affected. There is a need to constantly monitor the current happenings of each sector and respond to the markets in time , this is very difficult and would require a lot of manpower and time. As the times change , the profitability of the sectors also change. For Example, in our country there may be a positive uptrend in the tech industry but being sector agnostic the fund will have to diversify and forego more profits. For this reason, I would select a sector specific fund. Sector-specific funds focus on a single business line and make investments accordingly. Their performance is aligned with the performance of the sector in which they are investing.It attracts investors who are willing to take high risks. It needs rigorous research about the sector. Active investors who are constantly abreast of the news and headlines can take a better call on whether which sector is going t ...
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