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What is a sector mutual fund?

Updated: 8/17/2019
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14y ago

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A sector mutual fund is one that invests in stocks of only one or a small number of sectors. They do not buy stocks of companies that do not come under the sector they are designed to invest in.

For Ex: ICICI Prudential Infrastructure fund - invests only in infrastructure stocks. They will stay away from stocks that come under the chemicals, automobiles, banks sectors etc.

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