Sector funds offer

Question

Sector funds offer

Quizplus · Accepted Answer

Sector funds typically invest in a specific industry or sector, such as technology or healthcare. Because they are focused on a narrow area, they tend to have higher potential returns but also come with higher risk. Therefore, Option B, High loss/reward potential, is the best choice. Option A, Good diversification, is not applicable as sector funds do not offer diversification across different industries. Option C, Stable returns, is not applicable as sector funds are typically not known for stable returns. Option D, None of the above, is partially correct as sector funds do not offer good diversification or stable returns, but they do offer high loss/reward potential.

Sector Funds Offer