Sector mutual funds, also called specialty or specialized funds, concentrate their investments in a single segment of an industry, such as biotechnology, natural resources, utilities, or regional banks, for example.
Sector funds tend to be more volatile and erratic than more broadly diversified funds, and often dominate both the top and bottom of annual mutual fund performance charts. A sector that thrives in one economic climate may wither in another one.
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- American depositary receipt (ADR), Closed-end fund, Diversified Mutual Fund, Emerging markets fund, Global depositary receipt (GDR), Global fund, international fund, investment company, Offshore fund, Sector Mutual Fund, World fund
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