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What do you think of sector funds?
To me, they seem to combine good and bad stocks from one sector in a fund, bringing down the returns of the better stocks. Is the advantage of diversity worth the candle, and under what conditions? (I admit to an inherited bias against mutual funds in favor of individual stocks, and instinctively lean toward funds with specific investment objectives, such as high income, balanced stock/bond funds, growth, etc. for my few fund investments.)
Answers
4085 points
EthanR answered one year ago …
Sally, I used to buy the Fidelity Sector funds, and they can be very profitable if you find the right ones to buy at the right time. Comparing them by relative strength can show you which ones are the strongest at any given time.
However, more recently I have found advantages to buying sector ETF's instead. One big advantage is that you can move in or out of them at any point in the day, not just end of day. Another advantage is you don't have to stay in a sector for a month, as you do in the Fidelity sector funds.
If you like playing sectors, I would strongly recommend that you sign up for Teeka Tiwari's DVD course and service on www.TheTycoon Report.com Yes, I do write for them, so i am biased, but his course is absolutely excellent and comes with a 30 day money back guarantee. Good luck.
