Sector Breakdown
The 11 broad GICS sectors commonly used for sector breakdown reporting include the following:3
- Energy
- Materials
- Industrials
- Consumer Discretionary
- Consumer Staples
- Health Care
- Financials
- Information Technology
- Telecommunication Services
- Utilities
- Real Estate
Diversification and Sectors
A diversified stock portfolio will hold stocks across most, if not all, GICS sectors. Diversification across stock sectors helps to mitigate idiosyncratic or unsystematic risks caused by factors affecting specific industries or companies within an industry.
SOME TIMES FOR SEVERAL YEARS NO BOOM FOR CERTIAN SECTORS
SECTOR ROTATION
RISKS DUE TO
VARIOUS FACTORS TO THAT SECTOR WILL EFFECT THE STOCKS
EXAMPLE SEPCILITY
CHEMICALS
FOR THE PAST 7
YEARS CHEMICAL SECTOR IS GAINING PROFITS.
BECAUSE CHINA BIG
MANIFACTURER HAS SLOWDOWN ITS PROCESS.
SEE THE INDIAN AUTOMOBILE INDUSTRY
THE GROWTH ABOUT
THE STOCKS OF AUTO ANCILLARIES, 2, 3 WHEELERS MANUFACTURERS HAVE SLOW
DOWN
THEIR
BUSINESS
SEE THE TATA
MOTORS FOR EXAMPLE. SHARE PRICE WILL RISE BUT GROWTH IS VERY SLOW
BANKING SECTOR ALWAYS ROCKING,
THE BELOW I FRAMED VARIOUS PROMININENT SECTORS, SHARES IN THAT SECTOR
ONE SHOULD ALLOAT ALONG WITH THIS ONE OR TWO MIDCAP
SMALL CAP SHARES ALSO ADD. DUE TO GROWTH ASPECT. ,
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