Investors hoping to pursue specific growth opportunities may want to talk to their financial advisor about sector funds. A sector fund focuses exclusively on a well-defined segment of the economy such as technology, financials or health care. If your portfolio is underweighted in a specific sector, a sector fund can help you diversify and pursue specific growth opportunities that you believe may exist in the marketplace. However, with additional opportunity comes additional risk. Sector funds are typically more volatile than broad market funds, so you should carefully review your investment goals and tolerance for risk before considering whether or not a sector fund may be right for you.
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