Sector fund

(redirected from Sector Funds)

Sector fund

A mutual fund that concentrates on a relatively narrow market sector. These funds can experience higher share price volatility than some diversified funds because sector funds are subject to common market forces specific to a given sector.

Sector Fund

A mutual fund or other fund that invests predominantly or exclusively in a single industry or sector. For example, a sector fund may invest only in energy companies, or, even more narrowly, only in natural gas companies. Sector funds perform well when their industries perform well, but they are risky because there is no attempt at diversification. A sector fund is also called a specialized market fund.

sector fund

An investment company that concentrates its holdings among securities or other assets sharing a common interest. For example, a sector fund may limit its holdings to foreign securities from a particular country or geographic region (for example, Korea Fund or Pacific Fund). Likewise, it may specialize in the securities of energy-related firms or in companies that produce precious metals. Sector funds permit investors to concentrate on a specific investment segment and yet diversify their investments among various issuers. Sector funds entail more risk but offer greater potential returns than funds that diversify their portfolios. Also called special-purpose fund, specialty fund.

Sector fund.

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.

References in periodicals archive ?
The most striking aspect of the results is the sustained outperformance by Materials sector funds that beat the S&P 500 Materials sector index over one-, three-, and five-year horizons.
At the same time, John Sargent has even more of his portfolio--around 70%--in sector funds, yet he's not feeling any distress.
The package consisted of a copy-heavy #10 carrier, a 12-page sales letter which includes a description of four premiums, an 8 1/2 x 11" flyer listing "Top Performing Sector Funds," and an order form.
At the same time, there are more than a half dozen energy-specific funds, including offerings from each of the leading groups that sponsor sector funds - Fidelity, Vanguard and Invesco.
com/globalsector, to support its nine Putnam Global Sector Funds, the first suite of mutual funds to target stocks in sectors across the entire MSCI World Index.
The minister said sector funds would be able to pay up-front monetary compensation to electrical energy companies agreed to the early renewal of their generation and transmission concessions due to expire between 2015 and 2017.
Among the major sector funds groups, Commodity Sector Funds posted their first weekly outflow since mid-March while Technology Sector Funds extended their latest losing run to four straight weeks.
Emerging markets bond funds also extended their inflow streak to 22 straight weeks and commodity sector funds absorbed another $265 million (Dh973 million).
According to Fund Advisor, actively managed sector funds on average finished down 1.
ASA is targeting African American companies with retirement plans, endowments, foundations or public sector funds as well as high net worth individuals.
During the September quarter, public sector funds received 32.
NEW YORK -- As the economic recovery proceeds, financial services sector funds will benefit as credit quality improves and mergers/consolidations continue concludes, Standard & Poor's Chief Mutual Fund Strategist, Rosanne Pane.