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  Home > Investor Resources > Mutual Fund Essentials > Sector Investing : Why Use Sector Funds?

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Sector Investing


Why Use Sector Funds?


Today’s investment options are numerous. The incredible range of choice mandates careful consideration and selection. Like other investment strategies, sector investing can be a useful part of overall portfolio management.

Sector funds allow investors to take advantage of changes in domestic business cycles. Pursuing specific slices of the economy poised for growth provides the possibility to capitalize on changes in the economy by adding aggressive incremental diversification¹.

  • Diversification¹. Sector funds offer more diversification across an industry than owning individual securities, thereby reducing company-specific risk.

  • Portfolio hedge. Investing in sectors that have a low correlation to each other may reduce the overall risk of a portfolio.

  • Less research and monitoring. Owning sector funds may be a great alternative to owning individual securities because they may reduce the amount of research and monitoring required.

    



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¹ Diversification neither assures a profit or eliminates the risk of experiencing investment losses.

The information provided here is intended to be general in nature and should not be construed as investment advice or a recommendation of any specific security or strategy.


©2010 Rydex Distributors, Inc. All Rights Reserved.

Not FDIC Insured No Bank Guarantee May Lose Value

For more complete information regarding the funds click here for a prospectus. Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. The fund’s prospectus contains this and other information about the fund. Read the prospectus carefully before you invest or send money.

The funds are distributed by Rydex Distributors, Inc. (RDI). Security Global InvestorsSM is the investment advisory arm of Security Benefit Corporation (Security Benefit). Security Global Investors consists of Security Global Investors, LLC, Security Investors, LLC and Rydex Investments. Rydex Investments is the primary business name for PADCO Advisors, Inc. and PADCO Advisors II, Inc. SGI and RDI are affiliates and are subsidiaries of Security Benefit.


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