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Thematic Funds, Sectoral Mutual Funds – Good for Investment?

Sectoral Mutual Funds

Thematic Funds or Sectoral Mutual Funds are among few popular investment options. There are many success stories of earning roller-costar returns from the sectoral mutual funds. Looking at popularity and returns you might be interested in investing in Thematic Funds or Sectoral Mutual Funds. Before taking a decision of investing in these funds. Let’s look at What is Thematic Fund? Is it a good idea to invest in sectoral mutual funds or not?

Thematic Funds or Sectoral Mutual Funds

A Thematic Funds or Sectoral Mutual Funds are theme-based funds. As the name suggests, these funds invest in the specific sector or industry. The returns of sectoral funds are highly dependent on industry or sector where they invest. There is no diversification of investment in these funds.

These types of funds are recommended only for high risk aggressive and informed investors. If you are new to stock market you should avoid these funds.

There are various types of thematic or sectoral mutual funds. Few common categories of funds are given below.

Also Read – Top 20 Best Mutual Funds SIP to invest in India for 2018

Pharma or Health Care Funds – A mutual fund which makes an investment in stocks of pharmaceutical or healthcare related companies are known as pharma or healthcare funds.

Banking Funds – A fund that invests only in the banking stock is known as banking funds.

Technology Funds – A mutual funds that make an investment in IT companies stocks are known as technology funds.

FMCG Funds – These mutual funds invest in fast moving consumer goods companies.

Infrastructure Funds – The fund which makes an investment in infrastructure, metals, energy, and construction are known as Infrastructure funds.

The benchmark index of every fund is different. E.g For infrastructure fund Nifty Infra is benchmark similarly for FMCG, S&P BSE FMCG is the benchmark.

Should you invest in Thematic or Sectoral Mutual Funds?

If you are a highly aggressive investor you can think of investing in these funds. You should limit exposure to these funds up to 10% and invest only those funds which compliment your current portfolio.

Before making an investment in the sectoral fund, you should ask following questions.

  • A sector where you are investing is undervalued or not? – There is no point in investing in the overvalued sector.
  • What are the triggers that will help in boosting the performance of the sector? – If you don’t find two-three trigger points you should not invest in that sector.
  • How long will you keep your investment? – You should estimate the time period up to which sector will continue flourishing.
  • What will be your allocation in the specific sector?
  • How much money you can risk and what will be your exit strategy?

If you have sure shot answers of above question you can opt for thematic or sectoral mutual funds for investment.

Points you should remember while investing in Sectoral Mutual Funds

Portfolio Hedging

Sectoral Mutual Funds provides portfolio hedging to the investor. Let me give you an example currently the entire stock market is outperforming, but pharma and healthcare sector is not performing. However, a new social initiative of boosting health care by the government of India and probable FDA relaxation will be a trigger point for the healthcare sector in days to come. Similarly, the petrol price is increasing which is adversely affecting the economy and driving inflation at a higher level, but it is beneficial to energy sector companies and mutual funds.

You should limit the exposure

One thing you should understand when you invest in these types of funds is a performance of the fund is not guaranteed. A chance of gaining and losing money both is high. This means it is advisable to limit the exposure to these funds.

Investment Horizon

You should decide the investment horizon before making an investment in this fund. A sectoral fund is not recommended for a short-term period. You should keep an investment horizon of at least five years while investing in thematic funds.

Selection of Sector and Entry Exit

The selection of the sector is important while investing in these types of funds. Apart from the sector, you should also select an entry and exit point carefully. You should not invest in the sector which is overvalued.

Track Portfolio

Tracking portfolio is essential when you are making an investment in the thematic fund. You should have time to track portfolio and related news about a sector where you have invested money. Please remember that every sector goes through a cyclical phase of rising and fall in the specific investment horizon.

Do you prefer investing in Thematic or sectoral mutual funds?

Please share your views in the comment section given below.

Credit Card Statement – How to Read and Understand?

Credit card users are generally aware of Credit Card statements. If you are holding a credit card you must be receiving your credit card statement on the monthly basis. How many of you have practice reading credit card statements thoroughly? Perhaps, No one! In most of the cases, it is seen that credit card user look at the final amount and make payments. Even in some of the cases, people have set auto debit from the account. A habit of not going through credit card statements thoroughly can prove to be costly. There may be wrong amount, hidden charges or unknown entry.

A credit card statement includes a whole lot of information. If you ignore reading bill due to lack of understanding or knowledge about the terminology used in the statement, here is a complete guide to reading and understanding credit card statements.

credit card statement

Credit Card Statement – How to Read and Understand?

Credit Card statement contains multiple sections and terminology. A detail explanation of each section is given below.

Payment Due Date

The most important thing you need to check in the statement is payment due date. The reason is late payment fee and interest are applicable if due amount is not paid by due date. The interest amount is percentage of outstanding amount which is fixed for credit card. The late payment fee differs from bank to bank. The late fee will be charged only if you fail to pay the minimum amount due.

Any failure in making payment will be recorded in your credit history and adversely affect your credit history.

Also Read – Top 10 Best Credit Cards

Statement Date

Statement date is another important terminology. Statement date is a date, on which credit card issuer generate the credit card statement.  This date is used to calculate the interest amount if you do not pay the outstanding amount by due date. So, if interest is charged by credit card issuer and you want to tally the interest amount you can do that by using statement date.

Statement Period

Your statement period is usually written in top most corner of your statement. Statement period is important if you want to use interest free days. Calculation of interest free day starts from first day of credit card statement mentioned in statement period.

Cash Limit/Credit Limit

Most of the credit card statement contains credit summary section. This section provides detail of credit limit and available credit. Credit limit is maximum amount you can borrow by using this card. The credit limit is based on your income profile and your payment record. If you maintain good payment record it will help you in increasing your credit limit.

Total Amount Due

Total Amount Due is total outstanding amount due on your credit card. This means it is an amount you owe to credit card company. This amount includes interest rate and all applicable fees.

Transaction Details

Transaction detail is the section which provide complete information about every transaction. All purchase and payment done using credit card will be shown in this section. It will also show you currency detail and total amount. You should look at this section carefully to spot any errors.

Reward Points

Most of the credit card statement contains separate section showing reward points. The reward points include summary about point earned, point redeemed and point balance. You can do redemption of points on need basis.

Charges

Some credit card statement also shows separate charges section. This section includes charges such as late payment fee, credit card annual fees etc.

What to do in case of error in Credit Card Statement?

I hope you have got fair understanding about how to read and understand credit card statement. If you identify any errors on your statement first thing you should do is contact your credit card provider to report and solve the issue.

In case you find error in transactions or if your card is misused from fraudulent transactions, you should immediately block the card by giving request to credit card provider.

At the end, I would like to say that You might be thinking that credit card statement is an ordinary bill which you need to pay at the end or every statement period. However, it’s important to go through credit card statement thoroughly to find out error if any.

30 Low-Cost Business Ideas for Startups in India 2025

Are you planning to start a low-cost business but don’t know where to start? Are you wondering how to find low-cost business ideas that will bring you quick success and profitability?

If you are searching for small business ideas, consider yourself as lucky. Your search ends here.  Here is a list of 30 low-cost business ideas for startups in India.

As we know low cost is a relative term. A cost that is low for some may be high for others. So, to make it crystal clear I am going to share business ideas that can be started with an initial cost of Rs.10,000.

low cost business ideas

30 low-cost business ideas for startups in India – 2025

  1. Tuition Class

The first low-cost business idea is starting a home-based tuition class. It is a lucrative business idea that can give you a good income. You just need to invest money to buy a whiteboard and marker pen. You can offer tuition to individual students or in large groups. You need to be knowledgeable in the subject you are intended to teach. You can advertise your business by mouth-to-mouth marketing or social media.

  1. Network Marketing Business

Network Marketing or MLM is the next low-cost business, which can be started with a small capital of Rs.10000. MLM is also known as referral marketing. In this business, you need to sell the product of a network marketing company by making new members under you. You will get a commission for selling products and making members. This business has very good earning potential provided you work systematically and dedicatedly.

Also Read – 90 Business Ideas with low investment

  1. Tea Coffee Shop

Starting a tea or coffee shop is next on the list of low-cost business ideas. In this business, you need to rent a small place or stall for opening a tea stall. You will also need raw materials for making tea and coffee. For quick success, your shop should be near a college or a business place.

  1. Fast Food Joint

You might have noticed that fast food joints are almost always filled with customers. This is because most of the people are fond of fast food. It is one of the sure-shot successful businesses. To open up your own fast food joint, you need to invest money in renting the place. You need to get permission from the local authority to start the business. If your rent is Rs.5000 per month, you can spend the rest of the amount on buying raw materials and groceries. If required you can go for a higher budget.

  1. Travel Agency

Travel agency is one of the best business ideas with low investment. The travel industry is an evergreen industry. People across the world travel a lot for various purposes. In order to help them with lodging boarding and travel you can opt to start your own travel agency. A low-cost option of home home-based travel agency is tying up with a host agency. They will help you to get the IATA number faster. They will also help with back-office operations. You will only receive a commission for the customers.

  1. Photography

The next business idea is starting professional photography. A professional photographer is in demand today. In this business, you just need a high-definition camera. If you are already in possession of a camera your investment amount for this business would be less than Rs.10000. You just need to invest your time in learning professional photography and marketing your business.

  1. Tiffin Services

Tiffin Services is among one of the most promising business ideas. Most of the working professionals have no time to cook food at home. However, they prefer homemade food. If you have the expertise to make good food at a low cost you can start a tiffin service business. The only investment required for this business is the salary of middle man delivering the tiffin.

  1. Lime Soda Shop

Lime Soda Shop is the next low-cost business idea. In this business, you will need to pay rent for shop space. Other than this, the only big investment you need to do is the soda maker and the raw materials required for making soda. It is a low-cost low-return business.

  1. Candle Making

Candle making is a home-based low-investment business. Candles are used for religious purposes and as a decorative item. It is very easy to make candles at home. You just need paraffin wax and colors to make colorful candles.

  1. Insurance Agency

An insurance agency is a low-cost low-risk part-time business idea. As an insurance agent, you require quality such as good communication skills, convening power, and knowledge. The income of an insurance agent depends on several policies sold, the amount, and the type of insurance policy. You can first start with life insurance and later enter into the general insurance business.

Also Read – 200 Small Business Ideas in India with Low Investment

  1. Hand Made Gifts

There is a tradition to give a gift on every occasion and people prefer handmade or customized gifts. If you are creative and make various gift items at home you can start a handmade gift business at home. Once your business is established you can open your own store online or offline.

  1. Mobile Repair and Recharging

The mobile repair and recharging business is next on the list of low-cost business ideas. Before starting this business, first, you first need to learn mobile repairing. It is recommended to do a course on mobile repairing. The investment required for this business is very low. You just need a small place and kit for repairing your mobile.

  1. Blogging

Blogging is one of the best low-cost business ideas. It is a proven fact that one can earn a lot of money from blogging. Several bloggers are already living their lives on blogging. You need to take a domain name, and hosting space for starting this business. The investment required for this business is less than Rs.10000.

  1. YouTube Channel

YouTube Channel is a small investment business provided you have a laptop and computer with a good internet connection. In this business, you need to make and upload unique videos on YouTube. Once your channel gets popularity and fulfills certain criteria you can apply for the YouTube Channel partner program. As a YouTube Channel owner, you can earn a lot of money. However, it takes a lot of time and hard work to make money from YouTube.

  1. Affiliate Marketing

Affiliate marketing is a very good side business that can be started without any investment. In affiliate marketing, you need to become an affiliate of various online stores or products to help them sell their products. You will be paid a commission on every sale. This idea is suitable mostly for a blogger or online geek.

  1. Online Bakery

If you have skills in making bakery products such as cakes, biscuits, and cookies, you can think of starting an online bakery.  You need to invest money to buy a domain name and hosting space. You also need to arrange for the person who can take care of delivery.

  1. Online Store

Like an online bakery, another small investment business idea is starting an online store. In this business, you need to tie up with local stores to sell their products on your portal. This means the order will be taken by you but the delivery part will be taken care by the store. You will be working on a commission basis.

  1. Event Organizer

An event organizer is also known as an event manager. The task of an event organizer is to manage events effectively. This includes evaluating venues, meeting sponsors, scheduling performances, looking for audio-visual and food requirements for events, etc. The start-up cost of starting this business is low. However, to get quick success in this business you need to be very good in communication and networking skills.

  1. Wedding Consultant

A wedding consultant or wedding planner is hired to plan and coordinate the wedding celebration. The business start-up of wedding consultancy can be started at a low cost. In this business, you need to assist the bride or groom with the work related to weeding. It requires experience and expertise to become a wedding consultant.

  1. Used Book Store

A used book store or second-hand book store is a lucrative business option that can be started with Rs.10000 or even less. You just need to take shop on rent and purchase numbers of book from other bookseller. The business model of this business is very simple, buy second-hand books at low cost and sell at higher price.

Also Read – 40 SMALL BUSINESS IDEAS WITH LOW INVESTMENT

  1. Cooking Class

Cooking class is another small investment business idea. If you are a housewife expert in cooking you can start a cooking class at home. You may need to buy some specialized equipment like an oven, tandoor, chopper, etc. You may need to take training to improve your culinary skills in making specialized food such as Thai, Chinese, Italian, etc.

  1. Dance or Music School

Another start-up business that can be started with a low investment of Rs.10000 is a dance or music school. In this business, you just need a suitable space for starting a business. You may need to learn dance and music before starting this business.

  1. Gardening Service

Gardening services is a very good business idea. Gardening services include landscape designing, Lawn, water, and soil analysis, garden decoration, and vertical gardening services. These types of services are required at corporate and at home. You have to learn gardening services before starting this business.

  1. Mobile Auto Garage

Mobile Auto Garage is the latest business that can be started with low investment. You need to keep mobile manpower/repairers for this business. It is a good business idea because car breakdown takes place in the area where garage service is not available.

  1. Real Estate Agent

If you have good communication skills you can become a real estate agent. A real estate agency is one of the highly profitable business ideas that can be opened with a capital of Rs.10000. In this business, you need to help people find the right property for rent or sale. You can earn a hefty commission from every transaction.

  1. Placement Agency

The placement agency is a popular home-based business idea. In this business, you just need data on candidates looking for a Job. Just refer a candidate to the company and get a commission out of it. It is a very good small business idea.

  1. Custom Made Chocolate

If you are an expert in making chocolate you can start a homemade chocolate business. You need chocolate recipes, utensils, cookware, molds, and packing materials to start this business. You need to tie up with shopping malls or small shopkeepers to purchase your chocolate.

  1. Paper Plate or Cup Making

Disposable paper plates or cup-making is the next low-cost business idea. You can make handmade plates or plan to purchase a plate or cup-making machine. The demand of disposal paper plates and cups is very high thus starting paper plate and cup making would be a lucrative business option.

  1. Investment Advisor or Agent

To work as an investment advisor first, you need to become a registered investment advisor at SEBI. The fee for applying for RIA is Rs.5000. You need to thoroughly understand the investment market and options such as stocks, bonds, mutual funds, and IPOs. It is recommended to gain experience before applying as an RIA.

  1. Used product Sale

Many people want to sell used products and buy new ones. Thus starting used product sales is a lucrative business option. You require a suitable place to start this business. After successful establishment for a few days, you can also think of an online presence.

Over to You –

Please remember that big capital is not always required for starting a business. You can start a business with low capital. It is good to have soft skills such as communication skills, financial knowledge, leadership, and innovative thinking for getting success in the business.

15 Best Books for Stock Market Investors

15 Best Books for Stock Market Investors – There are various sources to learn stock market like blogs, television, YouTube videos and books. Among these book is one of the best of learning source. Books helps beginners in gaining a basic knowledge, which is extremely important when you are new to stock market investing. Books also helps experts in learning strategies and skill requires for increasing their profitability.

There are numbers of books available on the stock market. So, it is very difficult to identify best books for stock market investors. Here a is a list of 15 Best Books for Stock market investors along with brief introduction and review details. Starting from must read book to best seller every book is included in the following list.

best book stock market investors

15 Best Books for Stock Market Investors

#1 The Dhandho Investor

  • The Dhandho Investor is book written by Famous Investor Mohnish Pabrai. It is one of the simplest yet powerful book that I have ever read.
  • In this book author talks about concept of “Heads I win, tails I don’t lose much” i.e. ‘low risk, high return’.
  • The examples and case studies given in this book is very good. It clearly explains about investing in business with low risk and high returns.

Over all this book is must read for the investor with basic understanding of stock market.

#2 The Intelligent Investor

  • The Intelligent Investor is a book for Intelligent Investors. It is written by Benjamin Graham. Benjamin Graham is a mentor of stock guru Warren Buffett.
  • Fundamental of stock market investing and value investing is explained very well in this book. This book also explains about three different approaches for defensive and aggressive investors.
  • This book also contains detail information about a margin of safety, market behavior and risk management.

It is one of the oldest book which explain about basic as well as advance stock market investing concepts. It is highly recommended book for the stock market investor.

#3 The Little Book of Value Investing  

  • There are many ways to make money in today’s market, but the one strategy that has truly proven itself over the years is value investing. This book purely talks about value investing.
  • In this book author gives analogy of supermarket shopping to explain concept of buying stocks.
  • It also explains about value investing concepts like diversification of stocks, creating a margin of safety, preferring value over growth, shareholding, insider’s buying or selling pattern etc.

This is one of the best book for learning about protecting and growing your capital. This book also comes with audio CD.

Also Read – CAN SLIM – Stock Market Technique for finding best stocks

#4 One Up on the wall street

  • One Up on the wall street is one of the highest selling book written by Peter Lynch. Peter Lynch is a most popular stock market investor in America.
  • This book explains all basic stuff that beginner need to know before entering the stock market.
  • Peter Lynch has also mentioned about winning stock picking strategy in this book.
  • This book also describes 6 different type of stock categories in detail.

It is highly recommended book for the beginner planning to invest money in the stock market.

#5 Common Stocks and Uncommon Profits

  • Common Stocks and Uncommon Profit is written by Philip A Fisher. It is one of best book on stock market investing.
  • This book talks about a multibagger stock. It also explains that if you find a good stock and hold it forever it will give you massive gains.
  • It also gives information about 15 Points to Look for in a common stock.

The best part of this book is this book help in understanding about What to buy, where to buy and when to sell.

#6 The Warren Buffett Way – Investment Strategies of the World’s Greatest Investor

  • The Warren Buffett Way is a book on the investment strategy of Investment Guru Warren Buffett.
  • The author of book Hagstrom explains about every investment style of Buffett that can be applied to your stock portfolio.
  • If you want to become wealthy by following Buffett you should read this book.

#7 Beating the Street

  • Beating the Street is another good book by Peter Lynch. It is an excellent book for individual investors looking for value investment opportunities for a long term.
  • This book explains fundamentals of selecting a stock in simple language. If you are planning to invest in the stock market by yourself you should read this book.

#8 The little book that beats the market

  • The little book that beats the market is the smallest book in the list of 15 best books for stock market investors. This book is written by Joel Greenblatt.
  • It is New York Times best seller book.
  • This book explains key factors Earning Yield and Return on Capital for the selection of stocks.
  • It also talks about buying above average companies at below average price.

#9 Stocks to Riches

  • Stocks to Riches is a book written by Indian Author Parag Parikh. This book explains Indian Stock market and behavior of Investors in simple words.
  • This book also describes common mistakes by a beginner in the stock market. If you want to avoid a stock market mistake, you should read this book.
  • It is written in a manner that even common man with less education can also understand. That is the reason this book is on the list of 15 Best Books for Stock Market Investors.

#10 Learn to Earn

  • Learn to Earn is a book written by Lynch. It is one of the best books for the stock market investors.
  • This book gives basic information about market, economy, capitalization etc.
  •  It also highlights lot of facts about investing and business. It is a must-read book for the beginner in the stock market.

#11 How to avoid loss and earn consistently in the stock market

  • As the title suggest this book focus mainly on way to avoid loss and earn consistently form the stock market. The author of this book is Prasenjit Paul. It is about Indian Stock market scenario and winning strategies to beat the stock market to earn decent returns.
  • This book give insight above when to buy and when to sell. It also provides quick formula for picking winning stocks.

#12 Stocks for the long run

  • Stocks for the long run is a book written by Jeremy Siegel. This book explains the advantages of holding stocks over a long term.
  • It also gives an explanation about historical returns on stocks and bonds.
  • The odd part of the book is it explains old history of US Stock market, economy of china and global markets. Overall, it is a very good book for learning various things on the stock market.

#13 Warren Buffett letters to shareholders

  • Warren Buffett letter to shareholder is book which carries collection of letters written by Warren Buffett to the shareholders.
  • The book is very costly. However, it is worth to learn from the world’s greatest investment guru.
  • This book contains past 50 years of Warren Buffett’s letters to the shareholders of Berkshire Hathaway.

It is one of the best book. I have not read this book but gone through the review given by the readers.

#14 Value Investing and behavioral finance by Parag Parikh

  • Value investing and behavioral finance is book written by famous stock market investor Parag Parikh. This book explain that how behavioral traits helps investor in earning more money.
  • This book nicely explains that, it is very important to buy good business (not stock) at reasonable price with long term horizon and being patient.
  • It is must read book for stock brokers, bankers, portfolio manager, fund manager, new investor and student of finance.

#15 How to make Money in Stocks

  • This book is written by William O’Neil. This book describes about CAN SLIM – A winning system in good times or bad.
  • It combines fundamental and technical analysis and it is very good guide for new investors.
  • This book also provides proven techniques for finding winning stocks before they make big price gains.

I hope the list of 15 Best Books for Stock Market Investors will be extremely useful to you in the selection of a right book for the reading.

If you think I have missed any book on the list or if you want to include any additional book in the list, I request you to send your request at info@moneyexcel.com