Specialized Mutual Fund

[SPESH-uh-lized MYOO-choo-uhl fund]

What is the definition of Specialized Mutual Fund?

A mutual fund that confines its investments to a specific sector of the marketplace, focusing on a particular industry, geographic region, or type of security.

Using Specialized Mutual Fund in an Example

A specialized mutual fund might invest solely in technology companies, benefiting from the growth potential of tech stocks while also bearing sector-specific risks, such as rapid obsolescence or regulatory changes affecting only the tech industry.

Using Specialized Mutual Fund in a sentence

During our investment meeting, the advisor recommended adding a specialized mutual fund focused on renewable energy to diversify our portfolio towards more sustainable assets.

Related Terms

Surviving Spouse

A person whose spouse has died within the tax year and who may file a joint tax return for that year. Additionally, the surviving spouse can file joint returns for the next two years if they remain unmarried and maintain a household as the principal residence for a dependent child.

Learn More

Swap

A financial contract in which two parties agree to exchange streams of payments over a specified period, based on different indices such as interest rates, foreign exchange rates, or equity indices, applied to a notional amount. Swaps typically do not involve the exchange of principal.

Learn More