Business and Personal Finance Dictionary

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• SECTOR FUND
  
  Also called specialty or specialized funds, sector mutual funds concentrate their investments in a single 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.
  
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