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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Creations were additionally heavily tilted toward S&P 500 index and sector funds, accounting in aggregate for over 67% of the top ten inflows.
"Sector funds invest in securities of specific sectors such as information technology, banking and pharma sector as specified in the investment objective of the fund," said Gautam Kalia, head-investment solutions, Sharekhan, an online broking platform.
For district government discretionary sector funds amounting to 68.785 million rupees were allocated.
Sector funds, for instance, are highly dependant on the sector's performance, which might differ in degree and direction during different cycles.
The initiative includes the construction with private sector funds and once completed buildings will be paid for by the state through the renting of these buildings.
$10 billion of private sector funds to be injected into the GCC.
For instance, in Nigeria, public sector funds are cheaply sourced from ministries, departments and agencies of government at all levels.
He destroyed half the private pension schemes in order to pay out in the public sector funds, which have not of course, wilted at all.
President Asif Ali Zardari wants private sector funds for infrastructure projects.
Mortgage Backed and Municipal Bond Funds extended their recent inflow streaks, as did Utilities Sector Funds, and cumulative weekly flows into equity funds specialising in dividend paying stocks moved within striking distance of the $27 billion mark.
IN RECENT YEARS, investors have used ETF sector funds to achieve enhanced return potential based on fundamental and technical factors.