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Theme Fund |
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Theme Fund A mutual fund that invests predominately or exclusively in securities representing a single thing. For example, a theme fund may invest only in energy stocks, securities related to real estate, or in investment vehicles that conform to a set of ethical standards. While some theme funds can be relatively diversified, many are exposed to the risk that a downturn in the "themed" industry will impact the fund disproportionately. See also: Green fund, Islamic fund, Ethical fund.
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