A sector mutual fund, also known as a specialty fund, is a type of growth mutual fund that seeks growth by investing in specific sectors of the economy such as biotechnology, communications, financial services, health care, natural resources, technology, and utilities. Compared to non-sector growth funds, sector funds are considered higher risk because diversification is lessened when all of the securities in a mutual fund portfolio are from one industry sector.
We would like your feedback on this Personal Finance Frequently Asked Question.
