A sectoral fund is an equity-oriented mutual fund scheme that invests exclusively in stocks within a particular industry or sector.

This fund invests in stocks of the IT (information technology) and ITES (IT enabled services) sector.

The fund portfolio includes stocks of technology and technology dependent companies. This can include hardware and component, software, BPO, e-commerce, telecom, media and entertainment, gaming companies etc.

The fund manager of this scheme has the flexibility to invest in IT stocks across market caps. Investments are made in line with the fund discipline.

Sectoral funds can be one of the investment avenues for investors who have a positive outlook for a specific sector. Investors who are looking for a more focused and tactical approach to funding their long-term financial objectives.

The fund offers a direct plan and a regular plan. Direct Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Mutual Fund and is not available for investors who route their investments through a Distributor. The expense ratio of a direct plan fund is lower. A regular plan is one in which investors’ investment in the fund are routed through a broker or distributor. The expense ratio of a regular plan fund is higher.

Each plan will also have following options:

Growth Option – Under this, returns of the fund are reinvested in the fund itself. These will reflect in the increase in NAV of the fund.

Income Distribution cum Capital Withdrawal (“IDCW”) Option
(Payout of IDCW/ Reinvestment of IDCW/ IDCW Sweep Facility) ^ Under this, returns of the fund are distributed to investors as IDCW Investors can opt for IDCW pay out or IDCW reinvestment wherein they purchase more units of the fund with the income distributed.

^the amounts can be distributed out of investors capital (Equalization Reserve), which is part of sale price that represents realized gains

Exit load: For redemption/switch out of units on or before 30 days from the date of allotment: 1.00% of applicable NAV. For redemption/switch out of units after 30 days from the date of allotment: Nil.
The fund applies an expense ratio. This is intended to cover fund management and other administrative costs of the fund.

No, having a demat account is not necessary for investing in this fund.

• Fresh Purchase (Incl. Switch-in): Minimum of Rs. 1,000/- and in multiples of Re. 1/- thereafter
• Additional Purchase (Incl. Switch-in): Minimum of Rs. 1,000/- and in multiples of Re. 1/-thereafter
• Repurchase for all Plans/Options: In Multiples of Rs. 1/- or 0.001 units.