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Specialty Fund

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Specialty Fund
A mutual fund or other fund that invests predominantly or exclusively in a single industry, sector, or region of the world. For example, a specialty fund may invest only in energy companies, or, even more narrowly, only in natural gas companies. Specialty funds perform well when their industries perform well, but they are risky because there is no attempt at diversification. See also: Country fund.

specialty fund


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The catastrophe bond and sidecar markets "have successfully re-opened" in 2009, and specialty funds have raised capital to be deployed into the industry, said Appel.
Indeed, the SBA has a rich history supporting specialty funds, such as the New Markets Venture Capital program I've been managing for the past five years.
So, historically, a large blend fund--a mix of large-company growth and value stocks--would provide far less risk than specialty funds, such as those that invest in precious metals.
 
 
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