InvestorQ : What are the pros and cons of investing in Nippon India Pharma Fund Direct-Growth?
riya Ranade made post

What are the pros and cons of investing in Nippon India Pharma Fund Direct-Growth?

Answer
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3 weeks ago


There are no pros or cons to a financial instrument or an investment avenue as individuals are advised to consider any investment options based on their suitability. Nippon India Pharma Fund is a sector-based fund that predominantly invests in the companies operating in pharma or pharma-linked space.

Since sector funds primarily invest in one sector, they inherit concentration risk and their returns are solely dependent on the performance of the sector they follow. These sector funds carry very high risk and are recommended only to those investors who have a huge appetite for market volatility and a very long term investment horizon of at least 8-10 years.

Thus the investors are advised to evaluate their risk profile, investment horizon, and long term realistic financial goals before investing in sector funds or any investment vehicle.