Most mutual funds typically choose stocks using a bottom-up approach, but fund managers still maintain a strategic focus on sector allocation. Recognizing sectors with strong potential allows them to identify high-performing companies within those areas. Since different sectors react differently with changing market dynamics, a sector-based strategy can improve diversification and manage risk more effectively. By balancing investments across both defensive and cyclical sectors, this approach contributes to more stable returns. Here are the trends in mutual fund investments in top sectors





Published on April 15, 2025