Mutual fund investment becomes an ideal investment during the last few years in India. It poses a medium risk and provides good returns to the investors on their savings. There are more than a thousand schemes are available in the market of mutual funds. Sectoral mutual funds are highly risky compared to the other diversified equity schemes. During the recession period, some sector performed better and provides the better return than their benchmarks. In the present study, we explain the top most popular sector funds which hold the topmost assets under management of equity as well as performed well during the recession time period. These sectoral mutual funds are banking sector fund, Software sector fund, a Pharmaceutical sector fund, etc. Banking sector holds the 13% to 22% of the equity and well-managed sector funds provide 52.43% returns while worst managed sector provide 13.75% during the recession time period in 2008-09. Second largest equity holding sector is software sector fund. This sector holds 8% to 14%. Pharmaceutical sector grasps 6% to 8% and Auto sector seize 3% to 6% of the equity.