"At the recent RealAdviser Forum, one of the speakers highlighted the usefulness of 'sector funds' before mourning how few there now are. Is that not a case of survival of the fittest or should I be taking a closer look? If so, what still existing sector funds do your experts like the look of going forward?"
tim cockerill,rowan & co You have hit the nail on the head - funds are products and are no different from products in any other business. If a product is not popular and presumably not profitable it will be pulled or, in the case of funds, merged with another. Sector funds can present numerous difficulties. You have to have strong views on what sectors are going to perform well but, even when a sector performs well, not all of the stocks within it are necessarily going to perform. Then you have the issue that some sectors are very diverse and the drivers behind the performance of the stoc...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
