A mutual fund that invests in companies within the same industry is called a ____________ fund.

Question

Quizplus · Accepted Answer

A sector fund invests in companies within the same industry or sector, such as healthcare or technology. This allows investors to focus on a particular area of the market and potentially achieve higher returns if that sector performs well. The other options, such as growth-income and income, do not necessarily indicate a focus on a specific industry or sector. Small-cap funds invest in small-sized companies, while money market funds invest in short-term, low-risk securities.

A Mutual Fund That Invests in Companies Within the Same