# Are Sector and Thematic Funds Recommended in Model Portfolios? No, our Model Portfolios are designed for medium to long-term investors. Sector funds are not consistent and perform only during specific market cycles. Although sectors like auto and banking have been consistent recently, other sectors are too inconsistent, making it risky to rely on them for performance at the time of redemption. For example, if you invest in an infrastructure fund for a 10-year period for a child's marriage or education, the dynamic nature of the sector might result in poor performance when you need the funds. This could force you to delay your goals. On the other hand, diversified mutual funds deliver consistent returns across different market cycles, helping you achieve your goals. While sector or thematic funds may show great returns in 1 or 2 years, they can also lose up to 70% in other years. Diversified mutual funds, with their consistent performance, can provide returns equal to or better than the inconsistent sector or thematic funds in long term. Therefore, we recommend diversified funds over sector funds to ensure stable and reliable growth. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.investt.in/mutual-fund-faq/model-portfolios-faq/are-sector-and-thematic-funds-recommended-in-model-portfolios.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.