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Friday, June 1, 2007

What is a Sector fund??

A mutual fund that limits its investments to a specific industry / sector like technology, banking or health care.

Since all investments are concentrated in a particular sector, the risk is much higher than a diversified equity fund (one that invests in various companies of different sectors).

If the sector booms, these funds can produce phenomenal returns. If the sector slumps, you could lose your money.

Name: Calvin

Location: Hyderabad, AP, India

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