One of the key decision points for retail investors while investing in mutual funds is which category to go for - diversified or sectoral funds. Diversified equity funds invest in shares of companies across different industries or sectors, thus fund managers has the freedom to pick shares of any company from plethora of sectors. While sectoral funds focuses in one specific sector, fund managers gets to pick shares of companies from that specific sector only. There are a many sectoral funds – Power Funds, Infrastructure Funds, Technology Funds so on and so forth.