Sector fund

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 ?
The PS30million will go towards the PS43million Scottish Private Rental Sector Fund, set up by Sigma to increase rental property numbers.
A sector fund is a mutual fund scheme that invests most of its corpus in equities of one particular sector.
'If someone would be found guilty in misusing the Public Development Sector Fund (PDSF) then according to law he must leave his office or post till getting the clearance from the Supreme Court,'Durrani added.
We expect to launch the procurement for the private sector fund manager in Summer 2018, who will be tasked with raising the PS200m of private investment."
"The actual deficit in the public sector fund has increased from an annual of BD24 million in 2012 to BD129m by December 31 last year," said the report.
Some stand-out sector fund groups were real estate, up 13%; short, leveraged and other commodity strategies, up 10.75%; and health care, up 10%.
5, as did six of the seven major fixed income fund groups and five of the nine major sector fund groups.
surge but also the kickoff of a new incentive, Sector Fund (Fundo Setorial), which is pumping coin into the production and distribution of local pics.
Global Banking News-September 21, 2015--Manulife Investments declares distribution for Oil Sands Sector Fund
M2 EQUITYBITES-June 23, 2015-Manulife Investments declares USD0.125 per unit distribution on Oil Sands Sector Fund
BANKING AND CREDIT NEWS-June 23, 2015-Manulife Investments declares USD0.125 per unit distribution on Oil Sands Sector Fund