Sector funds are often attractive to individuals wishing to avoid high exposure to risk.

Question

Quizplus · Accepted Answer

Sector funds are actually known for their high exposure to risk as they only invest in specific sectors or industries, making their performance highly dependent on the performance of that particular sector or industry. Therefore, sector funds are not an appropriate choice for individuals wishing to avoid high exposure to risk.

Sector Funds Are Often Attractive to Individuals Wishing to Avoid