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What is the sector mutual fund? |
can you send me more information and articles about sector mutual funds? A mutual fund is a company that buys and sells many companys in an effort to make profits by owning a number of different types of businesses across the economy. Thus giving one diversification by simply owning one share of that company. A sector fund holds companys that are more or less in the same catagorie of the economy. i.e. energy stocks or mining stocks. A sector fund is a mutual fund that focuses on a particular industry and doesnt invest in much beyond that. They are not diversified and can pose significant risk and significant swings in profit & loss. |
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