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Finance allah shmoop What is a sect or fund All

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right Well star wars and star trek captains are all

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these barking about setting coordinates for sector for stat or

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whatever they say That means urgent in the future right

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We'll hear space here's sector four and it's Ah well

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kind of a slice of space Ok now come back

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to earth gently And as it applies to mutual funds

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it's kind of the same notion that is A sector

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comprises a particular discipline of investing Like think of it

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like a slice of the s and p five hundred

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Like one sector of the economy is banking Another is

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tech Another is telecommunications And then there's oil and transport

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And consumer durables in each of these areas has hundreds

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of ways in which investors can invest in that particular

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sector That is there are index funds that invest in

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it Yeah Mutual funds hedge funds private equity funds Even

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venture capital funds Each of whom has a particular discipline

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or focus on lee in one sector More less so

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why would you want to sector fund Well if you

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believe that oil was about tohave an explosion in demand

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the good kind of explosion Then you'd want to beam

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or exposed to it financially at least to its upside

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Then say you would technology which you feel has gotten

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too expensive in the markets And its best days are

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behind it It's A little like putting several of your

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eggs into one particular basket because you really like that 00:01:30.519 --> [endTime] basket

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