Allocation in general is a very subjective aspect. It depends upon the comfort level and mindset of the investor. But speaking for myself, whenever I am sure about a sector having tailwinds, I allocate anywhere between 10-30% by creating a basket of stocks from the sector. So a conservative guy can take it up to around 10-15% and aggressive person can take it up to 25-30 % or more.
It will also depend on the prior experience of the investor while playing this kind of game. If someone like me who has enjoyed rides in these sectoral runs has to allocate, I would be aggressive, as I would not have too many inhibitions and I know a big about the game. Same may not be true about someone who has been burned while playing this game, or someone who is playing it for first or second time. After a point it all boils down to experience and skill.
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