While diversified equity funds and bond funds form the core portfolio of mutual fund investors, tactical bets taken through sector or thematic funds can bring in alpha – excess returns over market returns to savvy investors.
Anand Tandon says, one should look at stocks where there is still value. "If one looks at market as a whole there are still sectors available that are reasonably cheap like IT which has been ignored because growth rate is presumed to be slower than other cyclicals," he adds.