Should you bet on sectoral or thematic mutual funds? Here is who should invest, when to invest

Past performance of a mutual fund scheme is no indicator of its future performance. However, investors continue to chase historical returns, especially when it comes to sectoral or thematic funds. “Taking decisions based on historical returns is one of the biggest mistakes investors make. Anyone who wants to get into a sector now, because it has generated fabulous in the last three years, should ask themselves why they did not invest in that