RupeeCase
Education . Sector Funds . 2 of 3
What a sector sleeve does to the bet you already hold
Financials, as a share of your whole book
Start with a Nifty 50 fund at 37.7 pct financial services. Now stack a financial services sector fund on top and watch the one bet you already had climb past half.
A thirty percent sector sleeve pushes more than half the book into one sector PCT OF EQUITY BOOK IN FINANCIAL SERVICES HALF THE BOOK no add 37.7 plus 10 pct 41.9 plus 20 pct 46.1 plus 30 pct 50.4 plus 40 pct 54.6 0 25 50 75 100 Left labels are the size of the sector sleeve added on top of the index fund
Source . NSE . SEBI . sector sleeve modelled at the 80 pct rule floor . illustrative
Put 30 pct of the book into the sector fund and financials crosses 50 pct. You did not add a slice. You grew the slice that was already the biggest one.