An investor with a low risk profile should invest in a sector fund.

Question

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A sector fund, also known as a specialized or focused fund, invests in a single sector or industry, which makes it a high-risk investment option. An investor with a low-risk profile should choose a diversified portfolio with a mix of asset classes, such as stocks, bonds, and cash equivalents. This approach can help reduce overall risk and provide a stable return over time.

An Investor with a Low Risk Profile Should Invest in a Sector