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Showing posts with label What are Sector Funds?. Show all posts
Showing posts with label What are Sector Funds?. Show all posts

What are Sector Funds?

Sector funds are those mutual funds or ETFs that invest in a single sector like Information Technology, Telecommunications, Pharmaceuticals, etc. In this type of investment there is very little or no diversification.

The purpose of sector funds is to take advantage of a growing sector. So it is important to understand the various sectors and the trends in their growth. Exiting at the right time is crucial to avoid loss. If you are holding a wrong sector at the wrong time it