A thematic fund has become a fashion nowadays. We see fund houses coming up with a lot of thematic NFOs. 'Infrastructure' is very hot among them.
Nothing wrong in having a part of portfolio in thematic funds. But we need to understand such 'concepts' are seasonal and may tumble once the season is down. The most important thing is that season never ends with a notice. (like IT sector suddenly seeming unattractive and most IT sector funds going down all of a sudden)
If you are a long term investor, you should have thematic funds just to add flavor and not as your main holding. For new investors its always better to avoid thematic funds as far as possible.
NFO= New fund offer from Mutual funds.
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