Mutual fund investors should consider sector funds or thematic funds in light of upcoming budget and elections. However, timing is crucial when investing in sector funds. Sector funds focus on specific sectors, while thematic funds encompass multiple sectors under a common theme. Diversified funds, on the other hand, cover a range of sectors. In terms of performance, diversified funds have a higher probability of beating the benchmark compared to sector funds. They also tend to provide more flexibility and active management