Interested in Sector Funds? Here Are a Few to Check Out

Investing in sector funds has become a very popular alternative to using traditional mutual funds. Sector funds allow you to take advantage of certain industries and sections of the overall market. Here are a few of the top sector funds that you should investigate.

Healthcare Sector Fund

One of the most intriguing sectors in the world to get involved in is the healthcare industry. The healthcare industry is growing at a rate unlike any other time in its existence. Every investor wants to get in at the beginning of a trend. With baby boomers getting older, many of them will require quite a bit of healthcare over the next few years. During this time period, the healthcare industry will have more patients than it has ever had. Having more business will bring in more revenue for the healthcare industry as a whole, and provide investors in that industry was nice returns on their investment.

The healthcare industry has also seen large advancements in treatment options and technology. These advancements create even more investment opportunities for those that wish to take advantage of the healthcare industry. For example, some sector funds might specialize in cardio devices, drug companies, or something else in the healthcare industry. Therefore, as an investor there are plenty of opportunities to get involved in the healthcare industry.

Technology Fund

Although technology funds did have a heyday back in the 1990s, they still could be a valuable investment for your portfolio. Technology funds experienced a crash around 2000, however they have rebounded nicely in the last few years. Technology funds tend to be very volatile overall. Therefore, as an investor, you should look at these funds as a chance for drastic growth in your portfolio. They should not be utilized for a short-term investment strategy, but should be held for the long-term.

Technology funds tend to mirror the movement of the market overall. However, their movement tends to be much more drastic than that of the market. It magnifies the movement to the market and does so very quickly. Therefore, if you got in at the right time you could stand to reap a nice gain in your portfolio. Technology funds include investments in companies that make advancements in the Internet, computers, software, and many other areas. Therefore, over the next several years there is ample opportunity to take advantage of this sector.

Energy Funds

Another fund that you may want to consider is the energy fund. There are many different energy funds that you could potentially get involved with. During this period in history, there will most likely be many advances in the field of energy. There is quite a bit of research going on on alternative forms of energy by a number of different companies. Therefore, while oil is still one of the main forms of energy for the foreseeable future, new contenders are looking to arise. As an investor, this could represent a huge opportunity for you to get involved.

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