Sector Funds - NEPAL MONETARY SOLUTIONS (NMS)

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Monday, March 7, 2016

Sector Funds

They invest their total fund in a specific industry e.g. utility fund for utility industry similar to power, gas, public works.

A stock mutual, exchange-traded or closed-end fund that invests only in businesses that operate in a particular industry or sector of the economy.

Since the holdings of this category of the fund are in the similar industry, there is an inherent lack of diversification connected with these funds.

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