Definition of Sector Fund

What is a "sector fund"? What is the definition of the term "sector fund"?

A "sector fund" is a mutual fund that is focused on one specific sector.

For instance, a health care sector fund would own companies that are health care companies, while a technology fund would only stocks of tech companies.

Definition of Sector Fund - Financial Dictionary - Stock MarketBecause sector funds are entirely focused on one sector, they will rise and fall based on the overall health of the sector. For instance, if you own a health care fund and the health care industry reacts negatively to a new piece of legislation, the performance of the fund will take a big hit.

Like with any other investment, sector funds should be used as part of an overall balanced investment strategy.

-- Articles That Mention Sector Fund: