Economics Mutual Funds Questions
A sector fund is a type of mutual fund that focuses on investing in companies within a specific industry or sector of the economy. These funds aim to provide investors with exposure to a particular sector, such as technology, healthcare, or energy. By investing in a sector fund, investors can potentially benefit from the growth and performance of companies within that specific sector. However, it is important to note that sector funds can be more volatile and carry higher risks compared to diversified mutual funds, as they are concentrated in a specific industry.