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Sector Funds are an excellent way to play a segment of the economy. Fidelity has created a fund for alomst every sector
in which to invest. For example, if you felt the Housing sector was going to go well in the near future, you may want to
buy a sector fund that invests in housing stocks. So, instead of just buying one stock, like Centex, you can be more
diversified and buy a portfolio of housing stocks.
Below are the links into websites that contain information on Sector Mutual Funds:
Sector Funds Explained
SECTOR FUNDS do what their name implies: They restrict investments to a particular segment -- or sector -- of the economy. A fund like Northern Technology, for instance, only buys tech companies for its portfolio. Munder NetNet cuts it even finer by holding only Internet-related stocks. Fidelity has a whole stable of sector funds from Fidelity Select Insurance to Fidelity Select Automotive. The idea is to allow investors to place bets on specific industries or sectors whenever they think that industry might heat up. Using Sector Funds to Construct Diversified Mutual Fund Portfolios 'Sector funds are too risky.' 'I doubled my money with Fidelity Select Technology in 12 months!' 'Avoid sector funds.' If all of this sounds confusing, you are not alone. Sector funds are among the more misused and misunderstood investments. So, how should you use sector funds? Sector Fund Basics Sector funds invest in the stocks of a single market sector or an industry within a sector. You choose the industry, and the fund manager picks the stocks. Sector funds lie between broad-based mutual funds and individual stocks, although they are closer to the stock end of the spectrum. Top 25 Sector Funds Based on Year To Date Return From CBS Marketwatch. YTD Returns of the Top 25 Sector Funds and links to their profiles. Investing Sectors S&P equity analysts provide review, rate and dissect each of the 125 industries and their investing prospects. Trading Sector Mutual Funds using the FT4Web Momentum Model This article discusses Momentum modeling among many sector funds. Sector Momentum trading will produce more return, often with less risk, when compared to the index funds. Using Sector Funds in a Portfolio Some investors build their portfolios around investment styles, placing a certain percentage of their portfolios in large-growth stocks, reserving another slice for small-value names, etc. Other investors, meanwhile, invest according to sectors. Use care if rotating into sector funds Sure, it's hot. It's so hot that you're sleeping on a bed of coals to keep cool at night. Hot. The last time you turned on the attic fan, the roof caught fire. Investing in Mutual Funds: Foreign & Sector Funds Foreign and sector funds can help you to diversify your investment portfolio. Diversification is a basic investing principle that is based on avoiding putting all your eggs in one basket. If you invest in different assets whose investment returns are not correlated you will reduce the risk in your portfolio.
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