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So far we've looked at broad categories. Stocks can also be divided into the industry type “sector funds”.
Sector funds invest in individual industries, such as banks or technology. Of the 912 new funds
created in 2000, most were sector funds, especially representing the internet sector. When a sector
is very narrow, I call it a "fad fund". Sometimes they start off with a spectacular flash
earning 100% or more.
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