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Sector Funds
Experienced investors wishing to pursue specific growth opportunities may be interested in sector funds. These funds allow investors to target certain industry sectors that look promising.
Sector funds defined
A sector fund is a professionally managed portfolio of stocks concentrated in a particular market sector or group of industries, such as biotechnology, natural resources, utilities or real estate. Sector funds allow investors to participate in the growth opportunities of a particular sector without having to select individual stocks themselves. Because of their specific focus, sector funds are generally best used as a complement to a well-diversified portfolio.
Why invest in sector funds?
High return potential. Sector funds offer investors a way to focus their investment on industry sectors with strong growth prospects. Because sector funds employ concentrated investment strategies, they can offer greater potential returns than more broadly invested portfolios.
Diversification. Sectors react differently during economic expansion and contractions. Adding investments from different sectors may help you take advantage of the rotating economic cycles.
Important Legal Information
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. Download a summary prospectus and/or prospectus, which contains this and other information. Please carefully read a prospectus before you invest or send money.
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